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2021 (9) TMI 619 - AT - Income TaxRevision u/s 263 - assessee`s case was selected for scrutiny under CASS - Whether assessment order passed by the assessing officer under section 143(3) of the Act is erroneous nor prejudicial to the interest of the Revenue? - HELD THAT:- From the question and answer, between assessing officer and assessee about the computation of capital gain in respect of immovable property as proved beyond doubt that assessee has replied the queries asked by the assessing officer and the assessing officer after getting the details from the assessee, applied his mind and framed order under section 143(3) of the Act, dated 26.02.2015. Therefore, order passed by the Assessing Officer should not be erroneous. Conversion of the immovable property into stock-in-trade - It is clear that during the assessment stage, the AO has examined the issue raised by the PCIT, about the conversion of the immovable property into stock-in-trade in F.Y. 2010-11 i.e. A.Y.2011-12. We note that when transferred asset was held as stock in trade, in that situation, section 50C would not apply, as held by Hon`ble Gujarat High Court in the case of Mukesh & Kishor Barot Coowners, [2013 (10) TMI 147 - GUJARAT HIGH COURT]. Hence order passed by the assessing officer is neither erroneous nor prejudicial to the interest of the Revenue. Sale consideration received on transfer of said immovable property - assessee is found to have shown contract amount of ₹ 60,00,000/- and has claimed expenses under various heads. The ld PCIT noticed that these are not contract receipts but sale consideration received on transfer of said immovable property - We note that during the assessment stage, the assessing officer had verified this issue. The assessing officer, (vide his notice under section 142(1) of the Act), has asked the assessee to furnish details of expenses, Trading account, Profit and loss account and Balance Sheet etc. The assessing officer has examined the nature of amount of ₹ 60,00,000/-, therefore, order passed by him under section 143(3) of the Act, is neither erroneous nor prejudicial to the interest of revenue. Since, we find that the Assessing Officer has made enquiries and the action of Assessing Officer in accepting the claim of assessee, after detailed enquiry, is a plausible view, so , we do not find that the twin conditions required for exercising the jurisdiction u/s 263 of the Act is found missing /absent and, therefore, the Ld. PCIT ought not to have exercised his revisional jurisdiction under section 263 - Decided in favour of assessee.
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