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2023 (1) TMI 815 - AT - Income TaxRevision u/s 263 by CIT - Additions u/s 56(2)(vii)(b) - purchase of immovable property - difference in value as per stamp duty valuation - as per CIT reassessment order passed by AO is neither erroneous nor pre judicial to the interest of Revenue - HELD THAT:- The order is not an erroneous order, since the Sale Deed itself got cancelled vide Cancellation Deed dated 26.02.2013 and the entire sale consideration was repaid to the assessee. Thus the question of invoking Section 56(2)(vii)(b) does not arise in the facts of the present case of the assessee. PCIT has not pointed out what is the error in the reassessment order passed by the A.O. and how it is prejudicial to the Interest of Revenue whereas the Ld. PCIT in his conclusion, accepts the submission of the assessee, cancellation of Sale Deed, etc., but require further examination and verification. This cannot be a ground to invoke Revision proceedings u/s. 263 of the Act. As relying on Malabar Industrial Co. Ltd [2000 (2) TMI 10 - SUPREME COURT] reassessment order passed by the AO is neither erroneous nor pre judicial to the interest of Revenue for invoking Section 56(2)(vii)(b) for the reason that the sale deed was cancelled vide Cancellation Deed dated 26.02.2013. Therefore the invocation of Revision proceedings by the PCIT is unjustifiable and the same is hereby quashed. Appeal filed by the Assessee is hereby allowed.
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