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2012 (8) TMI 389 - AT - Income TaxValidity of revisionary order passed u/s 263 on the issue of LTCG held to be STCG by CIT and excess allowance of deduction u/s 80C - assessee purchased three flats vide agreement dated 14.03.2001 rectified vide deed dated 09-10-2002 as the flats numbers were wrongly mentioned in the original agreement - Revenue submitted that through the rectification, the assessee had actually taken different flats, thus holding period was within the three years period - Held that:- It is observed that during the regular assessment proceedings the AO had already made the enquiry, as he thought fit. In these circumstances, it can never be held that there was a lack of enquiry by the authority under the Act. It can also not be held that the enquiry was inadequate because complete details were provided to the AO, therefore, we have to hold that this was a clear case of change of opinion, that too, on a proposal sent by the AO, meaning whereby it was not the case of suo moto action of the CIT, which means, that the CIT himself did not apply his mind. Hence, action to invoke revision proceedings u/s 263 is bad in law and cannot be sustained. Second part of revision proceedings with regard to excess allowance of deduction u/s 80C - rectification proceedings already initiated by AO - Held that:- Since, this was an erroneous view taken by the AO, which, in any case is unsustainable in law. We, therefore, uphold the revision proceedings initiated by the CIT on the issue of excess allowance of deduction u/s 80C - Decided partly in favor of assessee.
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