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2022 (8) TMI 436 - AT - Income TaxRevision u/s 263 - computation of long term capital gain derived transfer of property - Applicability of section 50C -HELD THAT:- AO has caused necessary inquiries with regard to computation of long term capital gain derived transfer of property and has computed capital gain by taking into account cost of acquisition claimed by the assessee without disturbing consideration received from transfer of property, even though, there is difference in guideline value of property. From order of the AO, what we could notice is that although, provisions of section 50C could have been applied in the given facts and circumstances of the case, but the AO has failed to apply provisions of section 50C to determine correct consideration received for transfer of property. PCIT, after verifying necessary evidences in light of various facts bought on record by the Assessing Officer has opined that the assessment order passed by the AO is erroneous, insofar as it is prejudicial to the interests of revenue on the issue of computation of long term capital gain from transfer of property, because the AO has failed to apply provisions of section 50C of the Act, while completing assessment. In our considered view, the AO has failed to apply his mind in light of facts of the case to relevant provisions of section 50C of the Act, while completing assessment. Hence, the PCIT has rightly exercised his jurisdiction u/s.263 and set aside the assessment order, because the assessment order passed by the AO is erroneous, insofar as it is prejudicial to the interests of revenue. Therefore, we are of the considered view that there is no error in the reasons given by the ld. PCIT to set aside the assessment order and thus, we are inclined to uphold findings of the learned PCIT and dismiss appeal filed by the assessee.
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