9911796707
TMI Blog2022 (6) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... f Revenue and hence, set aside. The assessee has raised following grounds of appeal:- "1) The Learned Principal Commissioner of Income Tax- Central Circle, Mumbai-1, erred in passing an order u/s 263 without jurisdiction. 2) The Learned Principal Commissioner of Income Tax- Central Circle Mumbai-1, erred in holding that the order passed by the Learned Assessing Officer u/s 143(3) read with Section 147 dated 16/11/2018 is erroneous so far as prejudicial to the interest of revenue without appreciating the fact that the Learned Assessing Officer had applied his mind and had taken a plausible view and the Learned Principal Commissioner of Income Tax- Central Circle Mumbai- 1 could not replace the view of the Learned Assessing Officer u/s 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show any income under the head income from capital gains and did not show any claim of deduction under Section 54 of the Act. Despite this, the learned Assessing Officer allowed the same. 04. The assessee replied in the original return of income under Section 139(1) of the Act that assessee inadvertently missed out in showing the capital gains. However, in the computation of total income, it shows Long Term Capital Gain and claimed exemption under Section 54 of the Act. 05. Further, during the course of hearing before Assessing Officer the assessee submitted the relevant details along with the copy of agreement for the claim of deduction under Section 54 of the Act. Assessee further stated that 50% sale consideration received was offered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly shows that order passed by the learned Assessing Officer is erroneous as well as prejudicial to the interest of the Revenue. He further held that assessee in the instant case was even failed to show how the capital gain derived on sale of immovable property can be considered for taxation in two different hands. Further, nothing is available on record to establish the fact that both are owner in equal proportion and both had made equal investment in the property. Therefore, the learned CIT(A) invoking explanation 2 to section 263 of the Act held that assessment order passed by the learned Assessing Officer is erroneous and prejudicial to the interest of the Revenue. Therefore, it was set aside with a direction to complete the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer under Section 147 read with section 143(3) of the Act is neither erroneous nor prejudicial to the interest of the Revenue. 09. The learned CIT Departmental Representative supported the order of the learned PCIT. 010. We have carefully considered the rival contentions and perused the orders of the lower authorities. In this case, original return filed under Section 139(1) of the Act did not show the capital gain earned by the assessee, therefore, the case of the assessee was reopened under Section 147 of the Act. In the reopened assessment proceedings along with the return filed, assessee disclosed the capital gain at Rs. nil. The working of the capital gain was contained in the computation sheet. Assessee sold a property for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the case of the assessee was reopened as assessee did not show capital gain in the original return of income. In the return in response to notice under Section 148 of the Act assessee disclosed Long Term Capital Gain as well as claimed deduction under Section 54 of the Act. The decision of the Hon'ble Supreme Court in Geotz India (supra) do not apply to the facts of the case as in the return in response to notice under Section 148 of the Act assessee claimed deduction in the return of income. Further, assessee can also claim eligible deductions from the escaped income in reassessment proceedings. The learned Assessing Officer also examined the details and allowed the claim. The learned PCIT did not suggest any further enquiries wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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