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2013 (5) TMI 46 - HC - Income TaxJurisdiction under Sec.263 of the I.T. Act - Claim under Sec.54A - Treating the sale as long term capital gain and not as short term capital gain - Held that:- The revisional authority should exercise their power under Section 263 of the Act - The order of revisional authority should indicate the error committed by the Assessing Authority and consequential prejudice caused to the revenue because of the erroneous order - Unless these two conditions exist, the revisional authority does not get jurisdiction to pass any order under Section 263 of the Act. Seen from that angle, in the impugned order though we could make out what is the error committed by the revisional authority, certainly there is no iota of evidence to show how it is prejudicial to the interest of the revenue. On the contrary the assessee has demonstrated that in no event the order passed by the Assessing Officer is prejudicial to the interest of the revenue. That aspect has not been considered and there is no reference to that aspect in the entire order passed by the revisional authority and by a cryptic order, the matter is remanded to the Assessing Authority - Though the Tribunal was not expected to go into the merits of the case, in order to demonstrate that the order passed by the Assessing Authority even if it is erroneous, is not prejudicial to the interest of the revenue, they have set out computation of capital gains and demonstrated that the order was not prejudicial - Therefore, the order passed by the revisional authority is illegal and rightly it has been set aside - The substantial question of law is answered in favour of the assessee and against the revenue - The appeal is dismissed.
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