TMI Blog2020 (12) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer to adopt guidance value of sub registrar in respect of one property as deemed sale value and to bring to tax the difference and to allow deduction under Section 80C - HELD THAT:- Commissioner of Income Tax as well as the tribunal has failed to appreciate that the Assessing Officer had put 36 questions to the assessee to ascertain the nature of business of the assessee and from perusal of questions Nos.16 and 18, it is evident that the aforesaid questions specifically pertain to issue of classification of income. It is pertinent to note that several notices were issued to the assessee and detailed hearings were conducted and the Assessing Officer in its order has mentioned the details of all the properties with dates of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee is also a document writer and is engaged in the business of typing and Xerox. The assessee filed the return of income for the Assessment Year 2009-10 declaring a total income of ₹ 35,59,600/-. The assessee declared business income from the proprietary concern Bhagirath Enterprises to the extent of ₹ 13,83,194/- and also declared income from the house property for a sum of ₹ 2,03,986/- and capital gains at ₹ 19,06,984/- and declared income from other sources at ₹ 1,55,438/-. The case of the assessee was selected for scrutiny and a notice under Section 143(2) of the Act was issued on 30.08.2010. The Assessing Officer by an order dated 15.12.2011 after making enquiries concluded the assessment by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders after duly verifying the details furnished by the assessee with that of books of accounts / documents filed, after providing reasonable opportunity of hearing to the assessee. The Assessing Officer was directed to look into the claim of the assessee with regard to disallowance under Section 80C of the Act and to adopt the guideline value as per Section 50C of the Act after providing an opportunity of hearing to the assessee. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short). The tribunal by an order dated 28.11.2014 dismissed the appeal preferred by the assessee. In the aforesaid factual background, the assessee is before us. 4. Learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer and once the material on record is considered, the power under Section 263 of the Act cannot be invoked merely because a different view can be taken. It is also argued that assessee had conducted the enquiries as required by Explanation 2(a) of Section 263 of the Act. In support of aforesaid submissions, reliance has been placed on decisions in 'CALCUTTA DISCOUNT CO. VS. ITO', (1961) 41 ITR 191 (SC), 'CIT VS. J.L. MORRISON (INDIA) LTD.', (2014) 366 ITR 593 (CAL), 'CIT VS. SUNSCAM AUTO LTD.', (2011) 332 ITR 167 (DEL), 'CIT VS. ARVIND JEWELLERS', (2003) 259 ITR 502 (GUJ), 'CIT VS. DEVELOPMENT CREDIT BANK', (2010) 323 ITR 206 and 'CIT VS. MARKETING AND ADVERTISING CO.', (2012) 341 ITR 180. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. 7. Thus, from close scrutiny of Section 263 it is evident that twin conditions are required to be satisfied for exercise of revisional jurisdiction under Section 263 of the Act firstly, the order of the Assessing Officer is erroneous and secondly, that it is prejudicial to the interest of the revenue on account of error in the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, it is pertinent to mention here that the Commissioner of Income Tax as well as the tribunal has failed to appreciate that the Assessing Officer had put 36 questions to the assessee to ascertain the nature of business of the assessee and from perusal of questions Nos.16 and 18, it is evident that the aforesaid questions specifically pertain to issue of classification of income. It is pertinent to note that several notices were issued to the assessee and detailed hearings were conducted and the Assessing Officer in its order has mentioned the details of all the properties with dates of purchase and sale and from perusal of the same, it is evident that the properties were brought and sold within a maximum period of 20 months, from wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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