Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 340 - AT - Income TaxRevision u/s 263 - claim of deduction u/s.54 without carrying out any examination and verification of the genuineness of the said claim for deduction - HELD THAT:- We find substance in the view taken by the Pr. CIT that the Assessing Officer had summarily accepted the assessee’s claim for deduction u/s.54 i.e, investment made by her towards construction of a new house at Nehru Nagar, Korba. As the summarily acceptance of the assessee’s claim for deduction u/s.54 by the AO i.e., without making any enquiry or necessary verification which should have been made by him, clearly falls within the sweep of Clause (a) of “Explanation 2” to Section 263 of the Act, therefore, we concur with the view taken by the Pr.CIT that the assessment order passed by the Assessing Officer u/s.143(3) r.w.s 147 is erroneous in so far as it is prejudicial to the interest of the revenue under Section 263. But then, as a word of caution, we may herein observe, that as the assessee had admittedly sold the property for a consideration of ₹ 65 lacs, therefore, her disentitlement for claim of deduction u/s.54 of the Act has to be restricted considering the said actual sale consideration and the capital gain arising therefrom. In sum and substance, though the provision of Section 50C would override the normal provisions for the purpose of quantification of the amount of long-term capital gain, but then, we cannot remain oblivious of the fact that the entitlement of the assessee for claiming deduction u/s.54 of the Act would continue to remain dependant on the amount of actual consideration received by the assessee on sale of the property in question. We, thus, subject to our aforesaid observations uphold the order passed by the Pr. CIT u/s. 263 of the Act. - Decided against assessee.
|