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2015 (11) TMI 1195 - AT - Income TaxRevision u/s 263 - deduction u/s 54B claimed by assessee qua sale of Sohna land was wrongly allowed as one half of the new agriculture land was purchased in the name of the assessee's wife Smt. Anita Rajni - Held that:- While examining the record under sec. 263, CIT has to see whether the subordinate authority has considered relevant issues and enquired into the relevant aspect of the claims in the year in question. Since the agricultural income in this year was not shown, the AO before partly accepting the assessee's claim u/s 54B ought to have enquired whether the land in question was used for agricultural purposes in the last two years or not, There is no finding to this effect in the assessment order. From the second page onwards till the end of impugned assessment order, there is only reference to claim of Section 54B of the Act. Thus in our view, this crucial aspect of land in question agriculture or residential plots, it’s being sold by way of plots in sq. yards become necessary for allowability of claim. Record does not reveal that these were considered or inquired. Thus there is a total lack of enquiry on these aspects besides whether the agricultural income was earned or not from this very land. In our considered view, the assessment order suffers from lack of enquiry on these crucial aspects and it is not a case of partial inquiry as pleaded to be covered by the judgement of Hon'ble Delhi High Court in the case of CIT vs. Sunbeam Auto Ltd. (2009 (9) TMI 633 - Delhi High Court) and other citations. Thus the order passed by the AO was erroneous and prejudicial to the interest of the Revenue. The ld. CIT has rightly passed the order u/s 263 with the direction that the AO should properly frame the assessment order afresh after making proper enquiries and by affording adequate opportunity of being heard to the assessee. - Decided against assessee.
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