Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 391 - AT - Income TaxValidity of order u/s 263 of the Act - Direction of the CIT in determination of assessee’s share in property and capital gain – Held that:- The case on which the reliance was placed has been dismissed – thus, the basis on which the CIT has held the assessment order to be erroneous and prejudicial to the interests of Revenue has become redundant - it is a fact on record that the issue with regard to sharing of the property between the co-owners is still pending before the Civil Court - the CIT cannot determine the share of the assessee in the disputed property when the matter is still pending for decision in Civil Court which alone is competent to decide the right, title and interest of the parties in respect of the property in question – thus, the CIT cannot direct the AO to determine assessee’s share in property as well as in capital gain as 1/3rd – thus, the order of the CIT is modified – Decided partly in favour of Assessee. Adoption of cost of acquisition – Held that:- The assessee during the revision proceeding before the CIT had produced certified copies of the sale deeds in case of two comparable instances of sale of land in the same survey number at Rs.6/- per sq. yard - the CIT has refused to take cognizance of them on a flimsy ground that the assessee has failed to produce the original sale deeds – the reasoning of the CIT is not at all acceptable - When the assessee is producing certified copies of the sale deeds, the CIT is bound to accept them and cannot insist upon the assessee to produce the original sale deeds which is an impossible act to do - the CIT cannot determine the cost of acquisition solely relying upon the SRO rate – Decided in favour of Assessee. Payment of brokerage – Held that:- CIT was not justified in holding the assessment order to be erroneous and prejudicial to the interests of Revenue – the AO has not only applied his mind but has also made necessary enquiry while bringing the capital gains to tax - The CIT(A) has dealt in detail with the various issues relating to capital gain in course of disposal of the appeal preferred by the assessee and has ultimately passed an exhaustive order wherein he has considered all the aspects relating not only to the computation of capital gain but also with regard to the various expenses claimed by the assessee including brokerage - the assessment order on the issue of capital gain having merged with the order passed by the CIT(A) and ITAT, will not be amenable to revisionary proceeding under section 263 of the Act in view of the specific bar contained under section 263(1) Explanation (c) – thus, the order passed by the CIT under section 263 of the Act is set aside – Decided in favour of Assessee.
|