TMI Blog2019 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... see has in its return claimed the same as giving rise to long term capital gains, which has also been examined by the Assessing Officer in the course of original assessment. The same has also been examined by the Assessing Officer in the course of Wealth Tax Assessment. What is the error in the finding of the Assessing Officer has not been pointed out by the ld. PCIT in his impugned order passed u/s.263 of the Act. Just because, the Assessing Officer has not assessed the said income from sale consideration of undivided interest in the land under the head Business as is of the view of the ld.PCIT, cannot term the assessment order passed by the Assessing Officer to be one done by non-application of mind, or one done without making due ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant assessment year sold undivided interest in land, held by the assessee company as an investment in Old Mahabalipuram Road (OMR). It was submitted that while filing the return of income, the assessee disclosed the same as giving rise to long term capital gains. It was submitted that the assessee had purchased the said land on 02.08.2007. The assessee had proposed to put a Software Technology Park on the said land. However, as the assessee was unable to source the funds for the same, assessee had sold the undivided interest in the land to various prospective buyers, who had entered into construction agreement with the builder. It was submitted that the assessee had not done any construction on the said property as has been mentioned in pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT did not accept the replies filed by the assessee to show cause notice u/s.263 of the Act, while passing impugned order dated 07.03.2019, ld.PCIT held that the Assessing Officer had accepted the assessee s claim without making due verification and without making necessary enquiries and that there was no application of mind on the part of the Assessing Officer and consequently directed the Assessing Officer to pass fresh order after examining the aspects again. It was submitted that the order passed u/s.263 of the Act is unsustainable in so far as the assessee has not done any business activity. It was also a submission that the sale of the land held as investment by the assessee was not liable to be treated as giving rise to income under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale of undivided interest in the land has taken place in 2014 onwards. Thus, it is very clear that this property is held by the assessee for more than seven years. It is an admitted fact that the assessee had proposed to start a Software Technology Park, and on it is failure to do so, the assessee had sold the said undivided interest in its land to various flat owners. The business of the assessee is not of purchase and sale of the land. The assessee has in its return claimed the same as giving rise to long term capital gains, which has also been examined by the Assessing Officer in the course of original assessment. The same has also been examined by the Assessing Officer in the course of Wealth Tax Assessment. What is the error in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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