2020 (11) TMI 215 - ITAT CHENNAI - Income Tax

Head Note / Extract:
Revision u/s 263 - computation of capital gains and the exemption claimed u/s 54 - PCIT has opined that the perusal of the assessment records shows that the AO has not carried out any verification of the details filed by the assessee - HELD THAT:- On perusal of the revision order passed u/s 263 we find that the ld. PCIT has not given any specific findings as to what is erroneous in the assessment order and what is required to be verified by the AO. On perusal of the assessment order, we find that after examining the working of the capital gain/loss, the AO has observed that the assessee has wrongly computed the indexed cost of improvement with respect to the property and accordingly, after revision of the computation, the long term capital loss was reduced to NIL. In the revision order, after considering the explanations of the assessee, PCIT has not disputed the computation of indexed cost of improvement as well as investment in bond and claiming exemption under section 54 of the Act or given any findings as to what is required to be verified by the Assessing Officer and what way the assessment order is prejudicial to the interest of Revenue. Revision order passed under section 263 of the Act stands quashed and sustains the assessment order. - Decided in favour of assessee.