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2019 (3) TMI 1001 - AT - Income TaxRevision u/s 154 - computation of Long Term Capital Gain - whether doctrine of merger prevents the undersigned from a ruling at variance with CIT(A) order pre-existing and very much alive? - rectify the assessment u/s 154 by replacing value determined by the DVO - HELD THAT:- When the AO has taken one of the possible view at the time of 143(3) assessment can he rectify the assessment u/s 154 by replacing value determined by the DVO. The provisions of section 154 makes it clear that in order rectify any order u/s 154 there should be a prima-facie mistake apparent from record. If the issue is debatable which can be decided on prolonged discussions or deliberations, the same cannot be subject matter of 154 proceedings. In this case, the issue of full value of consideration is a subject matter of deliberations and which can be decided by prolonged discussions and a view can be taken, therefore, the Ld. CIT(A) came to the conclusion that there is prima facie merit in the arguments of the assessee insofar as subject matter of 154 proceedings, but he went on to decide the issue on technical grounds by applying the principle of doctrine of merger because in earlier proceedings, the CIT(A) has decided the issue of computation of Long Term Capital Gain against the assessee. CIT(A) has been accepted the fact that the assessee has strong case on legal grounds of initiating 154 on subject matter in question, wrong in not adjudicating the issue on merit. We, therefore, of the opinion that, there is no merit in the finding of the CIT(A) and hence, we set-aside order of CIT(A) and restore the issue to the file of the AO to decide the issue on the basis of DVO report and objections of the assessee.- Appeal filed by the assessee is allowed for statistical purpose.
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