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2022 (9) TMI 49 - AT - Income TaxRevision u/s 263 by CIT - Assessee purchased certain lands for development and incurred certain expenditure on it in the form of stamp duty and land development expenses - HELD THAT:- There are no more sale deeds, the copies of which were not filed by the assessee during the original assessment proceedings. The observation made by CIT is totally wrong as he has not looked into this aspect that besides an amount of sale deed, the assessee had incurred certain development expenses and other expenses also, the details of which were submitted to him as well as were submitted to the AO during assessment proceedings. As regards the expenses incurred on these pieces of land, the AO, during assessment proceedings, required the assessee to produce bills/vouchers of such expenses and the assessee, vide letter dated 07/12/2017, placed at pages 33 & 34 of the paper book, vide reply No. 2, had produced for verification the vouchers of site development and land development etc. The copy of order sheet entry dated 01/12/2017 also supports this fact wherein the AO required the assessee to produce bills/vouchers of site development expenses and the order sheet entry dated 07/12/2017 states that the assessee has filed bills/vouchers of expenses, including lease rent, commission and land development expenses. All these details suggest that the AO has passed the order after taking into account and after examination of all the evidences with respect to amount debited in the purchase account of land. Therefore, there is no justification of initiating and passing order u/s 263 by learned Pr. CIT. For other issue of site wages and other expenses assessee had already filed copy of ledger account of such wages/development expenses vide reply wherein the assessee, in view of notice dated 16/01/2017, had submitted the copy of account of expenses including site wages expenses/development expenses. We further note from the order sheet dated 07/12/2017 that Assessing Officer has noted that details of expenses relating to business promotion, lease rent, commission, petrol, travelling etc. were filed by the assessee and which were checked. Therefore, in view of these facts and circumstances, we find that the Assessing Officer had carried out sufficient examination of the expenses relating to site & wages and therefore, passing of order u/s 263 on this account is also not justified. In the present case, the order passed by Assessing Officer on these two issues is neither erroneous nor prejudicial to the interest of Revenue therefore, we cancel the order passed by Pr. CIT on these two issues. In respect of other objections of learned Pr. CIT, the Learned counsel for the assessee did not advance any argument therefore, we have not adjudicated on those issues. Therefore, the action of learned Pr. CIT on those issues, not argued by Learned counsel for the assessee, is upheld. Appeal of the assessee stands partly allowed.
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