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2022 (9) TMI 454 - AT - Income TaxRevision u/s 263 by CIT - deduction u/s. 54 and 54F - status of the property - whether on facts, the AO can be said to have passed the order after making due enquiries wherein deductions claimed u/s. 54, 54F and 54EC have been allowed on facts or should the order passed by the AO on facts be set aside upholding the impugned order? - HELD THAT:- We find that the decision in the case of Sanjeev Lal [2014 (7) TMI 99 - SUPREME COURT] more latest in point of time is in the context of the relevant provisions of the Income Tax Act. The said decision has been rendered on 01.07.2014 and is in the context of Section 54 r.w.s. 2(47) - On a reading of the impugned order, it is further seen that all these decisions have been cited by the assessee before the CIT(A) and no attempt has been made by the PCIT nor by the ld. CIT-DR to distinguish the applicability of the said decision from the facts of the present case. Roping in the allegation of colorable device by citing the decision of the Apex Court in the case of McDowell & Company [1985 (4) TMI 64 - SUPREME COURT] on facts is completely unwarranted and misplaced. We find on going through the impugned order that except for suspicions no valid violation of any law u/s. 54, 54F and 54EC has been referred to. We have taken into consideration the decisions of the various Courts including the Apex Court in the case of Sanjeev Lal [2014 (7) TMI 99 - SUPREME COURT] another decision of the Apex Court in the case of T.R. Arvinda Reddy [1979 (10) TMI 1 - SUPREME COURT] and the Hon'ble Delhi High Court in the case of Balraj Vs. CIT [2001 (12) TMI 51 - DELHI HIGH COURT] and the decision of the ITAT in the case of Shri Bassheer Noorullah Khan [2019 (8) TMI 180 - ITAT BANGALORE] have all been taken into consideration. Accordingly, we find that the impugned order cannot be sustained. We find that when read along with the reply on behalf of the assessee before the ld. PCIT, we find that the appeal of the assessee has to be allowed. Revisionary Powers cannot be exercised arbitrarily. The twin conditions necessary for exercising the powers in the facts of the present case are found to be missing. Coming to the issues on which no Show Cause Notice was issued to the assessee, we find that legally such an action is not permissible and even otherwise, on merits we find that six month period, as considered by the AO has judicial recognition. We find that the Co-ordinate Benches have held that the term "month" has not been defined in the Income Tax Act and hence resorting to the term as defined in the General Clauses Act, 1897 it has been held that 'a month' shall mean as reckoned according to the British Calendar. Accordingly, we find that the view taken by the AO is very much within the four parameters of law. Merely because there is no discussion or elaborate discussion in the assessment order to the extent considered necessary by the ld. PCIT, we find that the assessee cannot be held liable as the remedy lies within. It is for the Tax Authorities to ensure that the Assessing Officers are well instructed to write the order elaborating the issues enquired into; the evidences considered to allow the claim and also discussions on how the claim is rejected. The assessee has no role to play as how the assessment orders are written. The said issue has many times been addressed by various Courts. Reference may be made to the decision of the jurisdictional High Court in the case of Hari Iron Trading Co. [2003 (5) TMI 48 - PUNJAB AND HARYANA HIGH COURT] where the Court considering the non-discussion on the issues in the assessment order observed "The assessee had no control over the way the assessment order was drafted. Appeal of the assessee is allowed.
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