TMI Blog2016 (12) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue, therefore, the CIT was erred in assuming jurisdiction to revise the assessment order u/s 263 of the Act. We, therefore, set aside order passed by the CIT u/s 263 of the Act and restore assessment order passed by the A.O. u/s 143(3) r.w.s. 147 of the Act. - Decided in favour of assessee - I.T.A.No.231/Vizag/2013, I.T.A.No.402/Vizag/2015 - - - Dated:- 9-12-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N. Hari, AR For The Respondent : Shri Govinda Rajan, DR ORDER PER G. MANJUNATHA, Accountant Member: These appeals filed by the assessee are directed against order of CIT-1, Visakhapatnam dated 14.3.2013, u/s 263 of the Income Tax Act, 1961 (hereinafter called as 'the Act') and CIT(A)-1, Visakhapatnam dated 30.10.2015, u/s 250 of the Act and it pertains to the assessment year 2007-08. Since, the facts are identical and issues are common, they are clubbed, heard together and disposed-off by way of this common order for the sake of convenience. 2. The brief facts of the case are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y transacted for purchase and re-sale of said property and accordingly, the assessing officer ignored purchase and sale consideration as depicted in the respective registered sale deeds. Since, the A.O. failed to examine the relevant details in support of cost of acquisition claimed by the assessee, though the registered deeds shows consideration which is less than the cost claimed by the assessee, the assessment order passed by the A.O. is erroneous in so far as it is prejudicial to the interest of the revenue. 4. It is the contention of the assessee that the assessment order passed by the A.O. u/s 143(3) r.w.s. 147 of the Act, is not erroneous in so far as it is prejudicial to the interest of the revenue, as the A.O. has examined the issue of computation of short term capital gain from sale of lands in the re-assessment proceedings by calling for necessary details of sale deeds and purchase deeds. The assessee has furnished copies of registered deeds and also furnished unregistered sale agreements in respect of purchase of property and also towards sale of property as per which, consideration paid for the transaction is more than the consideration shown in the registered sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith reference to the unregistered purchase agreements and take an objective and fair decision after giving the assessee a reasonable opportunity of being heard. Aggrieved by the CIT order, the assessee is in appeal before us. 6. The Ld. A.R. for the assessee submitted that the Ld. Commissioner of Income-Tax is not justified in invoking the provisions of section 263 of the Act, in as much as the order dated 30.3.2011 of the assessing officer is neither erroneous nor prejudicial to the interest of the revenue. The A.R. further submitted that the assessment was re-opened for the purpose of examination of cost of acquisition claimed by the assessee and the A.O. in the re-assessment proceedings, after considering the relevant facts has accepted the cost of acquisition claimed by the assessee, therefore the CIT was completely erred in stating that the assessment order passed by the A.O. is erroneous in so far as it is prejudicial to the interest of the revenue. 7. On the other hand, the Ld. D.R. strongly supported order of the CIT. 8. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The CIT revised as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order passed by the A.O. is prejudicial to the interest of the revenue. The assessee has considered sale consideration as per unregistered sale agreement, as against which she had claimed cost of acquisition as per the unregistered sale agreement for purchase of property and computed short term capital gain of Rs. 42,300/-. If you consider registered deeds for purchase and sale of property, the assessee has purchased the impugned property for a consideration of Rs. 4,45,805/- and sold said land for a consideration of Rs. 4,50,000/-. If you work out the difference between sale consideration and cost of acquisition, the short term capital gain works out to less than the capital gain declared by the assessee in the return of income filed for the year. The CIT claims that the assessee has considered sale consideration as per unregistered sale agreement, however, not supported the cost of acquisition with registered sale deed. We do not find any merits in the findings of the CIT, for the reason that when consideration for transfer is considered as per unregistered sale agreement, it is unjustified to adopt cost of acquisition as per registered sale deed. Therefore, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) r.w.s. 147 of the Act. 12. In the result, the appeal filed by the assessee is allowed. ITA No.402/Vizag/2015: 13. This appeal filed by the assessee is directed against order of CIT(A)-1, Visakhapatnam dated 30.10.2015 and it pertains to the assessment year 2007-08. 14. The brief facts of the case are that the assessee has filed this appeal against consequential order passed by the A.O. u/s 143(3) r.w.s. 263 of the Act. The A.O. completed assessment u/s 143(3) r.w.s. 263 of the Act and determined total income of Rs. 52,73,725/- inter-alia making addition of Rs. 24,44,195/- towards short term capital gain from sale of property as per the directions of the CIT u/s 263 of the Act. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). The CIT(A) for the reasons recorded in his order dated 30.10.2015, confirmed additions made by the A.O. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 15. Having heard both the sides and considered materials available on record, we find that the A.O. has made addition of Rs. 24,44,195/- under the head short term capital gains towards sale of property as per the directions of the CIT. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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