TMI Blog2017 (6) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to cause further enquiry regarding this expenditure as the AO stopped the enquiry after receiving the submissions from the assessee. In view of this, we do not find any infirmity on the findings of the ld.CIT with reference to the claim of loss of advance paid to M/s.Volvo India Pvt Ltd. Claim for deduction u/s.54 or u/s 54F - mentioning of the wrong section - Held that:- Our opinion on allowability of deduction u/s.54F of the Act is an alternative claim of assessee and not a fresh claim so as to file the revised return. The assessee has already filed the revised return and has made a claim in its return under wrong section. At the time of assessment, the assessee clarified that claim of deduction u/s.54 of the Act is wrong and it sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43 (3) of the Act is both erroneous and prejudicial to the interests of the revenue. The CIT failed to note that the order is neither erroneous for prejudicial to the interest of the revenue and therefore he did not jurisdiction to revise the assessment under section 263 of the Act. 4) The learned CIT erred in holding that no application, no enquiry whatsoever was carried out by the assessing officer. The CIT failed to note that both the issues were considered by the assessing officer by seeking details and clarification from the assessee in the course of assessment proceedings. 5) The learned CIT erred in substituting his opinion on allowance of claims for deduction with that of assessing officer, who allowed the claims after detaile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an income of ₹ 21,70,955/- for the assessment year 2010-11 after claiming deduction u/s.54 of the Act. The assessing officer completed the assessment under section 143(3) of the Act vide his order dated 01.03.2013, determining the total income at ₹ 26,60,160/-. In completing the assessment, amongst other claims, the assessing officer had allowed the claim of the assessee for the deduction of forfeited amount of ₹ 5,00,000/-, paid as advance for purchase of Volvo bus and also allowed deduction under section 54F of the Act, in respect of reinvestment of capital gains on sale of land, into residential house. 3.1 The Commissioner of Income Tax, Chennai issued notice dated 31.12.2014 u/s 263 of the Act, considered that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith a specific design with Volvo India Private Ltd., on 21.12.2008 by paying ₹ 5 lakhs as token advance by cheque No.036524 dated 18.11.2008. The Volvo India manufactured the Volvo and billed the same on assessee for Volvo FM 340 x 4 Tractor. But the said Volvo was not according to assessee s requirement and specification and the assessee has asked the M/s.Volvo India Pvt Ltd., to manufacture according to their requirement and not to register this vehicle in assessee s name. The assessee had written number of letters and emails with them but nothing truthful came out. But finally Volvo agreed to manufacture other two vehicles which the assessee bought during the year on a condition that this amount will be forfeited as it will be a lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. It is incumbent on the part of the AO to come to an independent conclusion that the loss claimed by the assessee is really a revenue loss or a capital loss. The AO absolutely closed his eyes for the reason best known to him and accepted the submissions of assessee as it is made by the assessee. Perusing the submissions of assessee, it does not prove the nature of loss as revenue expenditure. Being so, it is to be examined by the AO. At this point, we make it clear that the ld. CIT in his order clearly mentioned that there is no proper enquiry made by the AO and he is required to cause further enquiry regarding this expenditure as the AO stopped the enquiry after receiving the submissions from the assessee. In view of this, we do not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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