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2020 (1) TMI 548 - AT - Income TaxRevision u/s 263 - lack of enquiry on claim made u/s. 54F as Investment in two residential units seen and showing purchase price of said property at 1346% above market price - HELD THAT:- We find that the assessee made investments in two residential units along with two IT unit for a total consideration of ₹ 70,00,000/- which is evident from internal page 8 of Agreement to Assign at main page thereby, we find the AO assumed incorrect facts to satisfy the requirement u/s. 54F of the Act which supports the finding in showcasing of the Pr. CIT in its impugned order at page No. 1 that the assessee have shown investment in two residential units and the said residential units were purchased on 16-03-2010 which was beyond the allowed period of one year before sale of capital asset. Therefore, we find force in the arguments of ld. DR that it is a lack of enquiry by the AO in terms of claim made u/s. 54F of the Act. To the second query about substantial increase of sale price shown by the assessee vis-à-vis the value of price ascertained by Stamp Valuation Authority, it is observed from the impugned order i.e. page No. 8, the AO said to have been referred to the Assistant Valuation Officer for valuation of land and for the cost of acquisition as on 01-04-1981, it appears by the time of framing of assessment, the said reply from the Assistant Valuation Officer has not been received by the AO and without considering the same he completed assessment and allowed the claim of assessee u/s. 54F of the Act without referring and recording the same in the assessment order. In our opinion, in the present case having no report from the Valuation Officer, the AO allowed the claim of assessee establishes that the AO failed to examine the claim of assessee in terms of law contemplated therein. AO failed to apply his mind to the case in all perspective in terms of conditions contemplated in provisions u/s. 54F of the Act. He accepted the claim of assessee in the absence of any inquiry, in our opinion, the Pr. CIT rightly held its jurisdiction u/s. 263 - Decided against assessee.
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