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2018 (3) TMI 521 - AT - Income TaxRevision u/s 263 - not examining the rental receipts understated by the assessee compared to the TDS receipts as per Form No.26AS and the excess depreciation claimed by the assessee in respect of motor cars and long term capital gain loss claimed by the assessee - Held that:- The assessee has received the rents as per Form No 26AS a sum of ₹ 25 lakhs, whereas the assessee had admitted a sum of ₹ 12,28,020/- in the return of income and the A.O. has not examined the issue with regard to the remaining amount of ₹ 13,31,800/- which should have been brought to tax by the A.O., similarly, the assessee had claimed the depreciation @ 50%. The A.O. has neither called for the details nor the assessee had demonstrated that the motor cars were used for the purpose of running them on hire. With regard to the capital gains, the assessee had purchased shares at ₹ 10/- per share and sold the same at ₹ 10/- per share and claimed the long term capital loss of ₹ 1,28,65,574/- with indexed cost of acquisition at ₹ 2,48,65,574/-. But there was no valuation report submitted by the assessee to arrive at the market value as required by the Income tax rules. Therefore, the A.O. clearly committed an error which is prejudicial to the interest of the revenue and the Ld.CIT has rightly taken up the case for revision u/s 263. CIT(A) while remitting the matter back to the file of the A.O., had directed the A.O. to disallow the capital loss based on cost of inflation index and remitted the remaining two issues for readjudication. However, we are of the considered opinion that all the three issues required to be remitted back to the file of the A.O. to re-do the assessment afresh on merits. Accordingly, while upholding the order of the CIT passed u/s 263 of the Act, we remit the matter back to the file of the A.O. all the three issues with a direction to re-do the same afresh on merits. - Decided against assessee
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