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2023 (10) TMI 1142 - HC - Income TaxRevision u/s 264 - delay in filing the application as alleged - Computation of long term capital gain arising from sale of flat in Mumbai - deduction of renovation expenses after indexing not claimed - petitioner consulted another Chartered Accountant, who advised petitioner that the other co-owner of the property had claimed a deduction of entire renovation expenses incurred in September 1990 in respect of the flat after indexing the same and petitioner should have also done the same while computing his share of capital gains - Petitioner advised to file an application u/s 154 which was rejected on the ground that such claim was made first time in the application under Section 154 of the Act and it was never brought to the notice of respondent no. 3 earlier or CIT(A) - HELD THAT:- As agreeable there was no delay in filing the application u/s 264 because the application u/s 264 of the Act was against the order passed u/s 154 of the Act and not Section 143(3) - The order under Section 154 of the Act was passed on 8th December 2015 and the application under Section 264 of the Act was filed on 18th January 2016, within one year. The proceedings under Section 264 of the Act are intended to meet a situation faced by an aggrieved assessee, who is unable to approach the Appellate Authorities for relief and has no other alternate remedy available under the Act. The Commissioner is bound to apply his mind to the question whether petitioner was taxable on that income and his powers are not limited to correct the error committed by the subordinate authorities but could even be exercised where errors are committed by assessee. It would even cover situation where assessee because of an error has not put forth legitimate claim at the time of filing the return and the error is subsequently discovered and is raised for the first time in an application under Section 264. In Asmita Damle [2014 (5) TMI 1230 - BOMBAY HIGH COURT] also held that the Commissioner while exercising revisionary powers u/s 264 has to ensure that there is relief provided to assessee where the law permits the same. As submitted that assessee should produce documents to prove his share of the indexed renovation expenses. In our view, it is not required because in the assessment order dated 30th December 2010 passed under Section 143(3) of the Act in the case of Ravi R Agarwal, the other co-owner of the flat, the assessing officer has accepted the amount of Rs. 2,95,859/- as the cost of renovation of indexation. Therefore, this figure has to be accepted as correct and suitable allowance should be made while arriving at the long term capital gain. We hereby quash and set aside the impugned order and remand the matter to PCIT for denovo consideration. Order to be passed shall be a reasoned order dealing with all submissions of assessee. The application under Section 264 of the Act shall be disposed within 8 weeks from today.
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