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2023 (4) TMI 228 - AT - Income TaxRevision u/s 263 - Nature of capital gain - assessee has shown Long Term Capital Gain instead of short term capital account - order passed by AO erroneous or prejudicial to the interest of Revenue - HELD THAT:- AO has made the inquiry in respect of the LTCG earned on the piece of agriculture land in question and the appellant had offered the detailed explanations substantiated by the cogent and authentic evidences such as registered purchase deed, registered sale deed, computation of LTCG etc., which has, after the examination and verification of the same, rightfully been accepted by the AO. On going through the copy of the purchase deed of the said land, we find that direct possession of the land in question had been handed over/transferred to the appellant being one of the co-owners/ purchaser of the land on 17–04–2008 only and not on 17–05–2010 as presumed by PCIT. Payment consideration as also the possession of the said land had been completed in the F.Y. 2007–08 (as clearly demonstrated in the said registered purchase deed), which is very much supported from the records of the Sub–Registrar. Hence, so far first issue is concerned, order passed by the assessing officer is neither erroneous nor prejudicial to the interest of Revenue. Applicability of section 50C - Enhancement of the sale consideration on the basis of the valuation made by the DVO vis-a-vis the sale consideration claimed by the assessee does not arise, since the detailed explanation duly substantiated by cogent evidence was given to the AO vide submissions dated 6.8.2015, 04.01.2016, and 22.3.2016 and the same has been rightfully accepted by the AO - as argued that it is not a case of non-application of judicious and fair mind on the part of the AO as the matter has been duly considered by the AO at the time of assessment proceedings. Assessee has also contended that even after consideration of the report of the DVO and enhancement to the sale consideration share of the assessee, the difference between the valuation by the DVO and the actual sale consideration would be below 10 %. Deduction u/s 54B - AO had conducted the in-depth examination and verification of corroborative documents/materials submitted during the course of assessment proceedings and after application of fair and judicious mind, the AO had rightfully allowed the claim u/s 54B of the Act. We note that Pr. CIT had made the endeavor to substitute his personal view against the plausible view taken by the AO within the frame work of the provisions of the law and thus, there is no force in the inferences drawn by the Pr. CIT taking shelter under Explanation 2(a) of section 263 the Act. Assessee during the assessment stage has submitted all the documents, details and the explanations required by the AO and just because the Assessing Officer does not bring these facts in his assessment order does not mean that assessing officer has not conducted proper enquiry during the assessment stage. Distinction between "lack of inquiry" and "inadequate inquiry" - If there was any inquiry, even inadequate, that would not by itself, give occasion to the Commissioner to pass orders under section 263 of the Act, merely because he has different opinion in the matter. If an Income-tax Officer acting in accordance with law makes a certain assessment, the same cannot be branded as erroneous by the Commissioner simply because, according to him, the order should have been written more elaborately. Therefore, in the assessee`s case, it cannot be said that it is a case of 'lack of inquiry'. Appeal filed by the assessee is allowed.
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