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2022 (8) TMI 852 - AT - Income TaxRevision u/s 263 by CIT - Denial of deduction u/s 54F - Gain on sale of property was short term capital gain hence, exemption u/s 54F of the Act was wrongly claimed by the Assessee and allowing exemption u/s 54F by the AO on incorrect assumption of the fact that profit earned on the sale on land in question was long term capital gain was erroneous assessment prejudicial to the interest of revenue - HELD THAT:- As with regard to the case in hand the bench is of considered opinion that when the Assessee had claimed deduction which was examined by the ld AO then not only the question of quantum of deduction but also of eligibility has to be presumed to be under examination before the Ld. AO. Considering the grounds before the Ld CIT(A), even the question of applicability of Section 50 F or 50 C itself has come under challenge, as assessee claimed the land does not fall in category of Capital Assets. After the Tribunal's order [2018 (2) TMI 2080 - ITAT DELHI] this issue as a whole is pending before the ld CIT(A). Thus, when this issue stands restored to the file of the ld CIT(A) by order the exercise of jurisdiction u/s 263 by Revisional Authority by order was not called for as not only the question of quantum of deduction but even the liability and taxability of the consideration arising out of sale of agricultural land by the Assessee had not attained finality. Now that the matter is with CIT(A) and if the ld CIT(A), decides the issue in favour of the Assessee then issues which the ld Revisional Authority has considered to be erroneous and prejudicial to the interest of revenue, are open to be agitated by the Revenue before the Tribunal, by challenging such, findings of the CIT(A). It appears from the para 6 of the impugned order that Ld Revisional authority was specifically informed of pendency of appeal being pending before the Tribunal but still without giving reasons in the light of section 263(1)(c) of the Act, decided the matter and thus committed an error which needs correction. This bench is of firm view that grounds raised by the Assessee in the present Revisional petition are covered on facts and law, in ground raised and pending before the ld CIT(A), in appeal against the original assessment order. However, the ground no 1 deserves to be sustained.
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