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2023 (6) TMI 384 - AT - Income TaxRevision u/s 263 - According to the CIT, the assessee had incorrectly claimed the cost of acquisition while calculating the capital gain arising from sale of the properties - HELD THAT:- These charges were claimed towards cost of acquisition as it was one time charges paid for realising the enduring benefit arising out of the properties. Therefore, the expenditure was capital in nature and was capitalised in the books of account in the year in which it was incurred. During assessment proceedings the same explanation was submitted before the AO who after considering all the details had come to the conclusion that the assessee had correctly computed and declared the capital gain - In such a scenario, in our opinion, CIT had no jurisdiction u/s 263 merely because the Ld. AO did not express his satisfaction in so many words in the assessment order as held in CIT vs. Reliance Communication Ltd. [2016 (4) TMI 173 - BOMBAY HIGH COURT] SLP filed by the Department against the decision (supra) has been dismissed by the Hon’ble Supreme Court [2016 (11) TMI 1189 - SC ORDER] After considering the material placed by both the parties before us, we have come to the conclusion that assumption of jurisdiction by the CIT u/s 263 of the Act is not in accordance with law. Allow the appeal of the assessee.
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