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2022 (11) TMI 1448 - HC - Income TaxRevision u/s 263 set aside by ITAT - computation of capital gain - findings recorded by the PCIT that no enquiry was conducted by AO - Tribunal deciding the appeal against the Revenue by holding that the Assessment Order is neither erroneous nor prejudicial to the interest of the Revenue HELD THAT:- After considering the submission made by the assessee to all the notices issued by the AO the computation of capital gain as done by the assessee was accepted by the AO That apart the assessee has also reckoned the findings recorded by the PCIT alleging that the computation of capital gain is prejudicial to the interest of revenue. Assessee has submitted all details in a tabulated form and has demonstrated that if the view taken by the PCIT is to be accepted it would result prejudice to the interest of revenue. Unfortunately, the PCIT though extracted the elaborate submissions made by the assessee to the show-cause notice issued u/s263 of the Act, has not dealt with any of the contentions raised but merely concluded that the assessing officer has not made due enquiry. This aspect of the matter is factually incorrect, as the PCIT has committed a serious error in assuming jurisdiction under Section 263 of the Act. Tribunal has re-appreciated the facts and circumstances and has held that the assessing officer did conduct enquiry, which in our opinion was an elaborate enquiry conducted by the assessing officer. Tribunal had also considered the calculation of capital gain in the manner observed by the PCIT and has recorded a categorical factual finding that if the said method is adopted it will be prejudicial to the interest of revenue. Tribunal rightly granted relief to the assessee - Decided against revenue.
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