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2022 (6) TMI 684 - AT - Income TaxRevision u/s 263 - Deduction u/s. 54 of the act is not allowable - HELD THAT:- As it is not the case that the AO has not made enquiry. Indeed, the Pr. CIT initiated proceedings under section 263 of the Act on the ground that the AO has not made enquiries or verification which should have been made in respect of exemption claimed under section 54 - It is not the case of the Pr. CIT that the Ld. AO did not apply his mind to the issue on hand or he had omitted to make enquiries altogether. In the instant set of facts, the Ld. AO had made enquiries and after consideration of material placed on record accepted the genuineness of the claim of the assessee. We thus find no error in the order of Ld. AO so as to justify the initiation of 263 proceedings by the Ld. Pr. CIT. assessee's contention is thus allowed. We find that the AO based on the BU permission from Ahmedabad Urban Municipal Corporation dated 29-09-2011 has concluded that the construction was completed for the property after the date of transfer of the property. Admittedly, the BU permission is issued by the local authority which evidences that the construction of the building is within the parameters laid down by the government agencies and therefore the same can be used for the object for which it was constructed. To our understanding, the BU permission appears to be of significant document which is necessary to reach to the conclusion that the construction of the building has been completed in all respects. Thus, we deemed it fit to hold that the AO has taken one of the possible view which cannot be termed as erroneous insofar prejudicial to the interest of revenue in the manner as provided under section 263 of the Act. We hold that there is no error in the assessment framed by the AO under section 143(3) causing prejudice to the interest of revenue. Thus, the revision order passed by the learned PCIT is not sustainable and therefore we quashed the same. Hence the ground of appeal of the assessee is allowed.
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