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2023 (9) TMI 948 - AT - Income TaxRevision u/s 263 - Applicability of provisions of 56(2)(vii)(b) - PCIT applying Explanation 2 to section 263 held the impugned assessment as erroneous and prejudicial to the interest of Revenue; set it aside and directed the Ld. AO to refer the matter to District Valuation Officer (“DVO”) to examine the FMV of the property as on the date of purchase/registration and examine the issue of purchase of property for a consideration lower than the stamp duty value in the light of the provisions of section 56(2)(vii)(b) - HELD THAT:- We agree with the contention of the AR that the provision of section 56(2)(vii)(b) is not applicable to case of a company and that section 56(2)(x) which may apply to case of a company has been inserted by the Finance Act, 2017 w.e.f. 01.04.2017 and is accordingly applicable to AY 2018-19 and onwards whereas the case of the assessee company pertains to AY 2015-16. In this view of the matter, the direction of the PCIT is not sustainable, being not in accordance with law. Documentary evidence available in the records which the AO admits to have verified the veracity thereof amply demonstrate that the AO made the requisite enquiry. If that be so, a mere non-discussion or non-mention thereof in the assessment order could not lead to assumption that the AO did not apply his mind or that he had not made inquiry on the issue. Assumption of jurisdiction u/s 263 of the Act by the Ld. PCIT was not justified. Accordingly, we vacate his order. Appeal of the assessee is allowed.
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