Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 689 - AT - Income TaxRevision u/s 263 by CIT - Eligibility of claim of deduction u/s 54B - CIT directing assessing officer to make fresh investigations with regard to claim of deduction u/s 54B - HELD THAT:- We note that in assessee`s case under consideration, the assessee has received part payment in advance in the financial year 2011-12, and the said part payment so received in advance, was utilized by the assessee in purchasing another agricultural land therefore assessee is entitled to claim exemption under section 54B - These facts were examined by the assessing officer while making the assessment under section 143(3) of the Act, therefore, assessment framed by the assessing officer should not be erroneous. We are very much conscious of landmark decision of Malabar Industries Ltd. [2000 (2) TMI 10 - SUPREME COURT] wherein their Lordship have held that twin conditions needs to be satisfied before exercising revisional jurisdiction u/s 263 - it has to be remembered that every loss of revenue as a consequence of an order of Assessing Officer cannot be treated as prejudicial to the interest of the revenue. When the Assessing Officer adopted one of the courses permissible in law and it has resulted in loss to the revenue, or where two views are possible and the Assessing Officer has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue “unless the view taken by the Assessing Officer is unsustainable in law. We are of the view that none of the reasons set out by the ld PCIT for invoking the jurisdiction u/s 263 of the Act are sustainable. The impugned order of the ld PCIT has to be quashed for the reason that order of the Assessing Officer sought to be revised in the impugned order was neither erroneous nor prejudicial to the interest of the revenue for the reason of any lack of inquiry that the Assessing Officer ought to have made in the given facts and circumstances of the case - Decided in favour of assessee.
|