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2017 (10) TMI 47 - AT - Income TaxValidity of assessment u/s 153C - revision u/s 263 - Held that:- As it is noticed that the assessee is challenging the validity of the assessment completed u/s 143(3) rws 153C of the Act on the ground that there was no incriminating material found during the course of search and also that the order u/s 143(3) rws 153C of the Act has been passed without recording of satisfaction by the AO of the assessee as well as the AO having jurisdiction over the searched party. Since the appeal before us is against the order u/s 263 and not against the assessment order itself, we are of the opinion that the validity of the assessment cannot be challenged in this appeal before us. As already observed that assessment order dated 31.12.2007 has already become final. Such being the position we agree with the contention of the assessee that the already settled facts cannot be disturbed by an order u/s 263 by revising a subsequent assessment order. Therefore, we allow the additional ground of appeal filed by the assessee. Claim of TDS from the rental income declared by assessee being her share of 1/3rd of the total rent from the property - assessee has joint ownership of the property - Held that:- The assessee had submitted before the CIT that the assessee has joint ownership of the property and therefore, is eligible to receive only 1/3rd of the rental income and therefore, she has offered the said income in her return of income but since the TDS can be credited only to the account of one person, the assessee has been credited with the TDS and the assessee alone has claimed the TDS for the entire rental income in her hands. The assessee has also filed before us the returns of income of all the three owners of the property, i.e. the assessee, her husband Shri Nama Nageswara Rao, individual and HUF of Nama Nageswara Rao, to demonstrate that though their respective shares of rental income has been offered by all the three parties in their respective returns of income, the TDS has been claimed only by the assessee and submitted that there is no loss caused to the Revenue by allowing the entire TDS in the hands of the assessee. We find that all these documents were also filed before the CIT. However, the CIT has directed the AO to verify these documents and redo the assessment. The CIT ought to have gone through the documents to satisfy himself as to whether there was any prejudice caused to the Revenue. In view of the same, even on merits, the order of the CIT is not sustainable. However, in view of our allowing the additional ground of appeal, the order u/s 263 is not sustainable both on the technical issues as well as on merits. - Decided in favour of assessee.
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