Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 425 - AT - Income TaxRevision u/s 263 - valuation of the cost of construction for hospital building - survey u/s 133A - assessee had admitted additional income on account of unexplained investment in construction of hospital building - Pr.CIT has pointed out that the AO has ignored the issue which was the subject matter of the survey carried out u/s 133A of the Act and the AO should have examined in detail with regard to the valuation of the cost of construction carried out by the assessee for hospital building - HELD THAT:- We found substance on the observation of the ld.Pr.CIT as per his order dated 22/03/2017 and the ld.DR also argued the case very well and we found substance in the argument of the ld.DR also. All the facts were available before the AO, he should have referred to the cost of the construction of the building, which was the subject matter of the survey u/s 133A - AO completely brushed aside the survey statements/documents and merely accepted the submissions of the assessee. Therefore, as per explanation u/s 263, the AO did not discharge his liability fully. First the AO is an investigating officer thereafter he is an adjudicating officer. Considering the entire facts on the order passed by the AO, which is erroneous and prejudicial to the interest of the revenue, we uphold the action of the ld.Pr.CIT and dismissed the appeal of the assessee. Revision u/s 263 as AO has not referred the matter to DVO in the original proceedings us/ 143(3) of the Act - We do not find any substance on the order of the ld.Pr.CIT that the AO passed order in a hurry without waiting for the DVO report. DVO submitted report on 25/04/2018 u/s 142A of the Act after 6 months from the receipt of reference, therefore, the DVO report has no value in the eye of law as per sec. 142A(6) of the Act. In support of our view, we rely on the decision Narula Educational Trust [2021 (2) TMI 459 - ITAT KOLKATA]. Therefore, the AO will not get any benefit of extended period of 60 days as per sec. 153 of the Act. The ld.Pr.CIT is also not justified for reckoning the period for completion of assessment by the AO as per the limitation is also wrong. We set aside the order passed by the ld.Pr.CIT for exercising his power u/s 263 of the Act. Hence, the order passed by the AO cannot be revised us/ 263 of the Act. Therefore, the order passed by the AO is neither erroneous nor prejudicial to the interest of revenue. Appeal of the assessee is allowed.
|