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2022 (4) TMI 284 - ITAT JAIPURRevision u/s 263 by CIT- case was selected under scrutiny through CASS and the assessment u/s 143(3) was completed - Correct head of income - business income or capital gain - HELD THAT:- Not only that there is no discussion about the issue of show cause notice in the assessment order and its submission of the assessee on that reply. Why this fact has not been discussed in the assessment order which itself suggests that the order is non-speaking order and this order is prejudicial to the interest of Revenue and looking to this basic error in the order, the assessment order passed is prejudicial order and the invoking of provision section 263 is correct and no interference in the order of ld. PCIT-1, Jaipur is required. AO had erred in accepting the total income of the assessee under the head ‘’Business & Profession’’ instead of income declared under the head ‘Capitals Gains’’ without mentioning anything in the assessment order. It is clear from the assessment order that the AO had not examined or verified the reason for which the case was selected under CASS and even the specific show cause notice is not mentioned in the assessment order. When the case of the assessee was selected under CASS to examine the capital gains then the AO was required to examine the case meticulously on all the issues including the applicability of Section 50C for determining the correct income of the assessee and should pass a speaking order. Not only that the claim of income under business head cannot be made in ITR-2. Looking to all these apparent error in the order of the AO, it leaves the assessment open to the invocation of provision of Section 263. Pr. CIT has rightly invoked the provisions of Section 263 of the Act in the case of the assessee - Appeal of assessee dismissed.
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