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 1207 - AT - Income TaxRevision u/s 263 - LTCG - Nature of land sold - distance of the land in question from the outer limit of the Indore Municipal Corporation - assessee sold the land jointly with a co-owner - assessee claimed exemption of half share of long term capital gain claiming that the said land was an agricultural one and situated outside the definition of capital asset under Section 2(14) - whether SDM is not a competent authority for the distance certificate rather than PWD department is authorized for the same? - HELD THAT:- We find that the original assessment order has been passed under Section 143(3) of the Act by the Ld.AO after due verification of the issue raised in the order impugned passed under Section 263 of the Act and that too upon causing exhaustive enquiry and finalising the same after taking a possible view, the invocation of provision of Section 263 of the Act on the basis of change of opinion is, thus, not found to be sustainable. We have also found substance in the arguments advanced by the Ld. AR that the original order needs not to give detailed reason. Further that when one possible view has been taken by the Ld AO the said cannot be treated as erroneous and prejudicial to the interest of the Revenue. In this regard, we are also inspired by the ratios laid down in the judgment passed in the matter of CIT vs. Nirma Chemicals Works (P.) Ltd [2008 (2) TMI 373 - GUJARAT HIGH COURT] and CIT vs. Kamal Galani [2018 (6) TMI 1052 - GUJARAT HIGH COURT] Under this circumstance, we find the order passed by the Ld PCIT under Section 263 of the Act is not sustainable and thus quashed. Interest amount as received by the assessee from Gujarati Samaj, Indore - PCIT was of the view that the assessee has unaccounted money and out of books the same has been given to Gujarati Samaj - Since, the buyer could not make payment in due time as agreed upon the interest on delayed payment was made to the assessee. Therefore, such interest has been paid not on any amount of money borrowed from the assessee by the said party rather for non-fulfilment of the commitment of making timely payment in respect of sale of agricultural land. In view of the matter, there was no disclosure of any advance in the financial statement when the source of interest amount was asked by the Ld.AO. The above narrated facts were duly placed by the assessee to him and finally the Ld. AO accepted the said interest income made by the AO.. No contrary document, however, is forthcoming from the Revenue which could justify that the order passed by the Ld. AO in this count is erroneous so far as it is prejudicial to the interest of the Revenue. Hence, the condition prescribed under Section 263 of the Act has not been fulfilled in issuing the order under Section 263 of the Act by Ld. PCIT as impugned before us. Hence, the same is found to be not sustainable and thus quashed. Assessee’s appeal is allowed.
|