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2019 (12) TMI 1176 - AT - Income TaxRevision u/s 263 - AO has failed to make inquiries and apply her mind with regard to the applicability of the provisions of section 43CA - HELD THAT:- In the instant case, AO had primarily changed the head of income from business to that of long term capital gains for the reason that the assessee was trying to avoid provisions of section 50C. Provisions section 50C applies with regard to the transfer of long term capital asset, whereas section 43CA applies to transfer of asset (other than capital asset). Therefore, if the transfer of asset is to be assessed under the head `income from business’ necessarily, the provisions of section 43CA would have application and the value of asset for the purpose of stamp duty valuation under the State Government laws would deemed to be the consideration received on account of transfer of such business asset. AO had failed to take note of the provisions of section 43CA and the impact of such section in the instant case. As mentioned earlier, the assessee has already filed an appeal as against the assessment order holding the transfer of land would be assessable as income from long term capital asset. In context of the appeal filed by the assessee, the application of section 43CA assumes significance. AO having failed to take notice of section 43CA while framing the assessment order, would render the assessment order erroneous and prejudicial to the interest of the revenue in view of Explanation (2) clause (a) of section 263. Therefore, since the AO has failed to cause any inquiry in this regard nor examined the impact of section 43CA we are of the view that the CIT has correctly invoked his revisionary jurisdiction u/s 263 and set aside the assessment order dated 26.12.2016. - Decided against assessee.
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