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2019 (12) TMI 681 - AT - Income TaxValidity of revision order - whether the ld. Pr. CIT was justified in invoking revisionary jurisdiction u/s.263 of the Act in the facts and circumstances of the case? HELD THAT:- The details of valuation of closing stock of each project has indeed been furnished by the assessee before the ld. AO during the course of assessment proceedings vide letter dated 27/06/2017, on which fact there is no dispute. We find that ld. AO had merely sought to bring to tax the notional rental income from the closing stock of un-sold flats in terms of Section 23 of the Act. Revenue was not able to bring on record any evidences that the assessment for A.Y.2014-15 were subsequently subjected to any reopening u/s 147 of the Act or revision proceedings u/s.263 of the Act. Hence, it could be safely concluded that the ld. AO while framing the assessment for the A.Y.2015-16 had merely adopted the same valuation method accepted by his predecessor for A.Y.2014-15 in assessee’s own case. Hence, there cannot be any error on the part of the ld. AO in framing a possible view thereon. In any case, we would like to hold that the assessee had furnished the actual cost incurred in respect of this project which had been subsequently completed, before the ld. CIT during the revision proceedings wherein, the assessee was able to prove that the estimate made as on 31/03/2015 matched closer to the actual costs incurred in the project subsequently. There cannot be any prejudice that could be caused to the interests of the revenue also as it is merely a timing difference. Hence, it could be safely concluded that the ld. AO had duly applied his mind by accepting the valuation method adopted by the assessee in respect of Vrindavan Palms at ₹ 1500/- per sq.ft on an estimated basis as on 31/03/2015 on which there cannot be any interference and there cannot be any attribution of error on the part of the ld. AO. Hence, revision proceedings u/s.263 of the Act in respect of this project deserves to be quashed. There is no error in the order passed by the ld. AO in accepting the valuation of the assessee in respect of projects as on 31/03/2015 - the ld. CIT had erred in exercising revision jurisdiction u/s.263 of the Act in the facts and circumstances of the instant case. Appeal of the assessee allowed.
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