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2022 (10) TMI 1169 - AT - Income TaxRevision u/s 263 by CIT - Capital gain on sale of land - conversion of capital asset into stock-in-trade - Reopening of assessment concluded - as per AR adequate enquiries were made by the Assessing Officer during the proceedings u/s. 148 of the Act and, therefore, the Ld.PCIT cannot invoke the explanation-II to section 263 of the Act for the purposes treating the order passed by the AO is erroneous - HELD THAT:- In our opinion, the AO had formed a view whereby the AO has considered the transfer of land as a capital asset and is subjected to profit and gain on the transfer of the capital asset in accordance with the principles for computing the business income of the assessee. However, undoubtedly, the other view of the ld.PCIT whereby he was of the opinion that the land stood transferred within the meaning of section 2(47)(v) of the Income Tax Act on the date of handing over the possession of the land. Both the views are possible in the present set of facts and therefore, the view of the Assessing Officer cannot be said to be erroneous merely on the ground that he had agreed to the contention of conversion of capital asset into stock-in-trade as on 02.05.2007. AO has rightly taken one view by duly considering the fact that the impugned Land was nothing but a stock in trade and can be evidenced from the financial statements of the assessee. Once the view has been taken by the AO after thorough examination any other view taken by the ld.PCIT would form change of Opinion and is not possible U/s 263 of the Act. In our view, the Pr. CIT cannot thrust upon his own thoughts, perceptions, and conclusions on the A.O. (or) direct him to pass on order in such a manner and in such a fashion as he thinks fit by setting aside the already completed assessment. Crux of the issue involved is that the AO has framed assessment u/s 147 and not under section 143(3), as it is purely re-opened for a specific reason and was concluded by accepting the submissions of assessee after duly verifying the records and the material available on record and on complete satisfaction of the Assessing Officer. Assessing Officer had applied his mind and asked the relevant question from the assessee and thereafter had completed the assessment. While, deciding the issue, the Assessing Officer had noticed the decision of R. Gopinath (HUF) Vs. ACIT [2009 (7) TMI 1209 - ITAT CHENNAI] and ACIT Vs. T. Ashok Kumar [2012 (12) TMI 518 - ITAT HYDERABAD]. Thus, the decision of the Assessing Officer was based on one of the possible views, which is supported by the two decisions of the Tribunal. Thus assessment order passed under the proviso of section 143(3) r.w.s 147 of the Act, cannot be said as erroneous. Appeal of the assessee is allowed.
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