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2022 (6) TMI 449 - AT - Income TaxRevision u/s 263 - grant of deduction u/s 54 was not made in the original return filed under Section 139(1) - case of the assessee was reopened as assessee did not show capital gain in the original return of income - HELD THAT:- In the return in response to notice under Section 148 of the Act assessee disclosed Long Term Capital Gain as well as claimed deduction under Section 54 of the Act. The decision of the Hon'ble Supreme Court in Geotz India [2006 (3) TMI 75 - SUPREME COURT] do not apply to the facts of the case as in the return in response to notice under Section 148 of the Act assessee claimed deduction in the return of income. Further, assessee can also claim eligible deductions from the escaped income in reassessment proceedings. AO also examined the details and allowed the claim. PCIT did not suggest any further enquiries which are required to have been made by the learned Assessing Officer in reassessment proceedings. Therefore, in our opinion explanation 2 to Section 263 of the Act cannot be applied. Further, the learned PCIT also could not show how the order passed by the learned Assessing Officer is erroneous and prejudicial to the interest of the Revenue. Hence, the order passed under Section 263 of the Act by the learned PCIT is not sustainable. Hence, we quash the same. Appeal of assessee allowed.
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