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2018 (10) TMI 1933 - AT - Income TaxRevision u/s 263 by CIT - claim of exemption u/s 54F arising out of sale of immovable property - HELD THAT:- In order to justify the exercise of the power vested by the Statute u/s 263, it was incumbent upon the Pr.CIT to demonstrate that at the time of investment, the property was not a residential property and in terms of the relevant provisions of the Act i.e. Explanation 2(a), the Pr. CIT was required to demonstrate that the order passed was without making enquiries or investigation. The order passed fails on both these counts. The issue has been enquired into and nowhere in the order, the Pr. CIT he is able to show that the order passed either suffers from any error let alone such an error which is prejudicial to the interests of the Revenue. In the facts of the present case, we have noted that it is sufficiently established that at the time of the purchase of the specific property, the property purchased was a shop-cum-flat wherein admittedly the assessee’s share was the first floor. The fact that as per the Inspector’s report, sometime between November,2016 and March,2017, it is alleged that it was being used as a godown, in the face of the judicial precedent is not relevant. Admittedly as per the Chandigarh Administration Town Planning, the specific property is described as SCF i.e. shop-cum-flat wherein detailed shop-cumresidential flat plan etc. as per the map approved is available. The issues have been enquired into by the AO in the course of the assessment proceedings as for this specific purpose, admittedly the case was selected for scrutiny in CASS. Before the AO, the assessee’s explanation has been offered. The plan and the map site etc. have all been made available. Nothing has been brought out in the order to show the status of the property at the time of investment. Accordingly, in the peculiar facts and circumstances of the present case, the Explanation 2(a) of Section 263 of the Income Tax Act is not attracted. - Decided in favour of assessee.
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