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2022 (3) TMI 1404 - AT - Income TaxRevision u/s 263 - Nature of land sold - agricultural land or capital asset - reopening of assessment u/s 147 concluded against assessee - HELD THAT:- When the land was sold by the assessee, the status of land was agricultural land. This fact has been adequately inquired and examined by the assessing officer during the reassessment proceedings and having examined the said fact, the assessing officer has dropped the re-assessment proceeding initiated u/s 147 of the Income Tax Act. Hence, assessing officer, having examined the assessee`s fact (that land is an agricultural land therefore it is not subject to capital gain tax), and legal position in relation to the fact, decided not to initiate the reassessment proceedings under section 147 of the Act, therefore, such order passed by the assessing officer is neither erroneous nor prejudicial to the interest of revenue. It is well established that the impugned order passed u/s. 143(3) r.w.s.147 of the Act dated 18.10.2016, was passed by assessing officer, after calling for relevant information and after detailed examination of the same. The Assessing Officer has passed the assessment order after calling for details on the issue and after considering the reply and documents and after verification of the same and after due application of mind passed the assessment order, so it cannot be termed as erroneous and prejudicial to the interest of the revenue. So, the Ld. PCIT’s finding fault, with the order of the Assessing Officer is erroneous as well as prejudicial to the interest of revenue, on account of lack of inquiry, has to fail - we quash the order passed by the ld PCIT under section 263 - Decided in favour of assessee.
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