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2021 (8) TMI 852 - AT - Income TaxRevision u/s 263 by CIT - computation of long term capital gain from sale of property - AO examined sale of movable assets like air-conditioner, furniture and fixtures etc. and accepted claim of the assessee that they are in the nature of personal effects not liable for tax - HELD THAT:- AO after accepting explanation furnished by the assessee, has taken a possible view and has completed the assessment, therefore, the Principal CIT cannot assume jurisdiction u/s.263 to treat assessment order passed by the AO as erroneous and prejudicial to the interests of revenue. The question whether movable assets like air-conditioner, used TVs, fridge, dining table etc. are personal effects or capital assets is debatable issue. Since the issue is debatable, the AO has taken one of the possible view and accepted claim of the assessee that they are in the nature of personal effects and not liable for tax. The view taken by the AO may not be correct, but the Principal CIT cannot assume jurisdiction to review the assessment order u/s.263 of the Act, unless the view taken by the AO is unsustainable in law, because the Principal CIT cannot impose his view on the AO . Therefore, we are of the considered view that once an issue was subject matter of assessment proceedings by the Assessing Officer in original assessment proceedings, then there is no scope for the Principal CIT to revise assessment order by holding that assessment order passed by the Assessing Officer is erroneous, insofar as it is prejudicial to the interests of revenue - See VENKATAKRISHNA RICE COMPANY AND VIJENDRA PAL SINGH [1981 (3) TMI 1 - MADRAS HIGH COURT] Assessment order passed by the AO is neither erroneous nor prejudicial to the interests of revenue. Hence, we are of the considered view that the Principal CIT has erred in revision of assessment order passed by the Assessing Officer u/s.143(3) of the Act. Hence, we quash revision order passed by the Principal CIT u/s.263 - Decided in favour of assessee.
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