9911796707
TMI Blog2023 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... without prejudice to one another. 2. The order passed by Pr. Commissioner of Income-tax, Rajkot-1 [hereinafter referred as to the "PCIT"] is bad in law, invalid and requires to be quashed, the same may kindly be quashed. 3. The Ld. PCIT erred in law and on facts in arriving at a conclusion to the effect that the assessment order passed by the AO was erroneous as well as prejudicial to the interest of the revenue on the ground that such order was passed without making proper enquiries/verification of applicability of section 50C of the Act in respect of properties received as gift from brother and given as gift to brother. Therefore, the order passed by PCIT is required to be quashed and may kindly be quashed. 4. The learned Pr. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is not available with the case records, and as the capital account is debited by Rs. 11,87, 416/- and Rs. 6,87,874/- by him, the provisions of Section 56(2)(vii)(b) of the Act are applicable in the case of the assessee. However, the AO has not verified the above issues properly while finalising the assessment under Section 143(3) of the Act. After taking the submissions of the assessee on record, Principal CIT set-aside the assessment order as being erroneous and prejudicial to the interests of the revenue, with the following observations: "6. I have gone through the records the submission made by the assessee during the proceedings. The assessee has submitted that the issue under consideration has been duly examined in the assessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in F.Y. 2009-10 & 2010-11. Further in support of it, it has provided the copies of the purchase deed of some properties only and not about all the properties. Here it is worth to mention that it is peculiar fact that the assessee is transferring three properties to his brother Shri Yogeshbhai V Barbhaya and he is getting two properties from Shri Yogeshbhai V Barbhaya. Therefore the nature of transfer in view of the relevant provisions of IT act ought to have been examined by the AO. 7. The above facts will indicate that AO has not conducted by inquiries/verification in respect of issues mentioned above. It may be mentioned that two essentials condition for invoking the provisions of section 263 of I.T. Act are that the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such transfer of capital asset (this being a "Gift" of property between two real brothers), the provisions of Section 50C are not attracted. In response, the Ld. DR relied upon the observations made by the Principal CIT in the 263 order. 5. We have heard the rival contentions and perused the material on record. In the assessment order, AO observed that in the reply dated 13-09- 2019, the assessee has submitted clarification for each of the entries made in his capital account. Accordingly, the AO being satisfied with the reply/clarification filed by the assessee, accepted the returned income of the assessee and no additions or made in the assessment order. However, considering the facts involved in the present case, where there was transf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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