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2009 (11) TMI 621 - AT - Income TaxRevision u/s 263 - Valuation of property - annual value - revision u/s 263 - Held that:- the municipal authorities have fixed the valuation at a higher figure than the rent receivable. This valuation fixed by the corporation can be taken as the sum for which the property can be reasonably let out. Even though in the earlier years the valuation of Rs. 42,000 has been accepted by the Revenue authorities, the same being in violation of law, such an error cannot be permitted to be perpetuated. Reconciliation of profit - The perception of the CIT that the profit is low prompted him to issue show-cause notice to the assessee. Profit before taxation of the company as a whole for the year under consideration is Rs. 3,303.42 lakhs as compared to Rs. 3,561.15 lakhs for the immediate preceding year. Thus, there is a fall in profits by Rs. 257.73 lakhs. On the other hand, the total revenue has increased from Rs. 1,93,946.48 lakhs to Rs. 2,19,195.88 lakhs. - Held that:- The AO in the present case did not find anything startling in the marginal drop in profits and for that reason the CIT held his order to be erroneous. This is not envisaged under s. 263 of the Act. - The various points noted by him are mere illustrations which according to him should have been looked into by the AO. As a matter of fact, while dealing with the aspect of profits, the CIT has not been able to show a single error in the order of the AO. - Revision us/ 263 set aside.
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