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2014 (2) TMI 646 - AT - Income TaxPower of Revision in u/s 263 of the Act – Declaration of LTCG – Held that:- The long term capital gains declared by the assessee in the computation of income included the sum which the assessee received under the Sale Deed - the AO was apprised of the monies received under the Sale Deed - There is nothing on record to suggest that the sum ought to be treated as income from business - the property was held by the assessee as a capital asset and any income from transfer of the said property would give rise to income under the head ‘capital gains’ - when the sum received under the joint development agreement was treated as capital gain, there is no reason why the sum received over and above the sum received under the joint development agreement at the time of sale on the very same property should be treated as income from business - sale consideration received on sale of property cannot be bifurcated as partly giving rise to income from business and partly giving rise to income from capital gain - there is nothing on record to indicate the basis on which the CIT comes to the conclusion in the order u/s. 263 of the Act that the sum is to be assessed as income from business - The order of the AO was therefore was not erroneous. Jurisdiction u/s. 263 of the Act cannot be sustained on the basis that there was no enquiry made by the AO on the issue considered in the order u/s. 263 of the Act - in the course of assessment proceedings necessary details had been furnished by the assessee - the CIT is of the view that an enquiry made by the AO is inadequate –Relying upon CIT v. Sunbeam Auto Ltd.[2009 (9) TMI 633 - Delhi High Court] - jurisdiction u/s. 263 of the Act cannot be invoked for inadequate enquiry - the jurisdiction u/s 263 was not properly invoked – thus, the order of the CIT u/s. 263 of the Act is quashed – Decided in favour of Assessee.
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