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TMI Blog2013 (12) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... y disallowing lump sum amount of Rs. 5 lakhs. The ld. Commissioner has called for the records of this case u/s 263 of the Act and found that this order is erroneous and prejudicial to the interest of the revenue as the AO has not properly investigated the items of income and has made it in haste. The ld. Commissioner has show caused the assessee on the following grounds:- "(i) The Assessing Officer had not enquired into whether the conversion of agricultural land into residential plots and its sale tantamount to indulge in trading of plots and therefore, it was an adventure of trade and income was assessable under the head business instead of long term capital gain, (ii) There was a failur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and agricultural, hence, no return of income after A.Y. 2002-03 was filed being income was below taxable limit. (ii) The Assessee had received immovable property as per 'will' executed by her uncle, Sh. Gowardhan B Goil, being agricultural land measuring 7.5 bigas located at village-PAL, district-Jodhpur, cash and three FDRs. (iii) Due to old age, it was become difficult to cultivate agricultural land, therefore, she decided to sale the land with a view to get better price by dividing agricultural land into plots of different sizes and some of the plots were sold in the year under consideration after converting the same into abadi land. (iv) The Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yzed by various Courts including that of Hon'ble Apex Court. The revisional power conferred on the CIT vide section 263 is of vide amplitude. It enables the CIT to call for and examine the records of any proceeding under the Act. It empowers the CIT to make or cause to be made such an enquiry as he deems necessary in order to find out if any order passed by Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue. The only limitation on his powers is that he must have some material(s) which would enable him to form a prima facie opinion that the order passed by the Assessing Officer is erroneous in so far as it is prejudicial to the interest of the Revenue. Once he comes to the above conclusion on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record satisfaction that the order of the Assessing Officer is erroneous and prejudicial to the interests of the revenue. Both the conditions must be fulfilled. (ii) Section 263 cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer and it is only when an order is erroneous, that the section will be attracted. (iii) An incorrect assumption of facts or an incorrect application of law will suffice for the requirement or order being erroneous. (iv) If the order is passed without application of mind, such order will fall under the category of erroneous order. (v) Every loss of revenue cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation of the assessee, the decision of the Assessing Officer cannot be held to be erroneous simply because in his order he does not make an elaborate discussion in that regard." 3.1 Reverting to the facts of this case we are of the considered opinion that in view of the afore stated legal position on revisionary jurisdiction of the commissioner of Income Tax, the assessment order dated 15/09/2010, in this assessee's case has been wrongly made. The AO cannot revise an order on grounds regarding which the assessee was not show cause otherwise also the assessment order was made u/s 147/148 r.w.s. 143(3) of the Act and the AO has computed assessee's income after making reasonable and due inquiries. The assessee is not found to have been indu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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