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2022 (4) TMI 743 - AT - Income TaxRevision u/s 263 by CIT - wrongful Capital gain computation - non-consideration of difference in sale value shown in registered document, when compared to guideline value fixed by the authorities for stamp duty purpose in computing long term capital gain - case of the assessee was selected for scrutiny under CASS for verification of deduction claimed under capital gains - HELD THAT:- Principal CIT erred in invoking jurisdiction u/s.263 of the Act, to revise assessment order passed by the Assessing Officer u/s.143(3) of the Act dated 27.09.2017, because very purpose of scrutiny assessment in the present case was to examine long term capital gain computed by the assessee and exemption claimed thereon. In the assessment proceedings, the Assessing Officer had called upon various details, including statement of long term capital gain computed by the assessee along with relevant evidences and after considering various evidences filed by the assessee has accepted long term capital gain computed by the assessee. From the above, it is very clear that the issue considered by the Principal CIT for revision of assessment order has been already examined by the Assessing Officer and has taken a view and thus, we are of the considered view that the Principal CIT cannot substitute his view and held that assessment order passed by the Assessing Officer is erroneous and insofar as it is prejudicial to the interests of revenue. According to the Principal CIT, there is difference between sale value shown in registered document, when compared to guideline value of property. If you compare difference arrived at by the Principal CIT, it is less than specified percentage allowed under the Act, in terms of provisions of section 50C(3) and 55A(b)(i) of the Act. Even assuming for a moment, the Assessing Officer has not considered the above issue, but definitely it cannot be said that said issue is prejudicial to the interests of the revenue, because even if, the Assessing Officer has considered the issue the A.O. cannot make any addition, because difference in value shown in sale deed, when compared to guideline value is less than specified percent. Therefore, in our considered view on this issue, the Principal CIT cannot revise the assessment order. As regards, cost of improvement claimed by the assessee, including expenses incurred on fencing, bore well, leveling of plot and building, it was the case of the PCIT that although, the assessee claimed various expenditure, but the Assessing Officer had not examined the claim. We do not find any merit in findings of the Principal CIT for simple reason that very purpose of limited scrutiny assessment was to examine long term capital gain computed by the assessee. From the assessment order, it is very clear that the Assessing Officer has called for various details and accepted long term capital gain computed by the assessee. Therefore, we are of the considered view that the Principal CIT has erred in coming to the conclusion that the Assessing Officer has not examined cost of improvement claimed by the assessee. Cost of acquisition considered by the assessee by adopting fair market value of the property as on 01.04.1981 - We find that the assessee has considered certain value of the property as on 01.4.1981, whereas the Principal CIT has considered value as on 01.04.2003. There may be various reasons for difference in value of property. We find that unless the Principal CIT brings on record any conclusive evidence to prove that value adopted by the assessee is incorrect, the Principal CIT cannot presume that value adopted by the assessee is incorrect by considering value on different rate. Further, the very purpose of scrutiny assessment in the present case was to examine computation of long term capital gain. The Assessing Officer had considered the issue and called for various details and accepted claim of the assessee . Therefore, we are of the considered view that the Principal CIT has erred in revising the assessment order on this issue also - Decided in favour of assessee.
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