TMI Blog2023 (6) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... rectly computed and declared the capital gain - In such a scenario, in our opinion, CIT had no jurisdiction u/s 263 merely because the Ld. AO did not express his satisfaction in so many words in the assessment order as held in CIT vs. Reliance Communication Ltd. [ 2016 (4) TMI 173 - BOMBAY HIGH COURT] SLP filed by the Department against the decision (supra) has been dismissed by the Hon ble Supreme Court [ 2016 (11) TMI 1189 - SC ORDER] After considering the material placed by both the parties before us, we have come to the conclusion that assumption of jurisdiction by the CIT u/s 263 of the Act is not in accordance with law. Allow the appeal of the assessee. - ITA No. 278/Del/2021 - - - Dated:- 23-5-2023 - Shri Shamim Yahya, Accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold have been filed by the Assessee for claiming Long term Capital gain and he also forgot to consider that inadequate / insufficient inquiry does not amount to lack of inquiry so as to attract the provisions of section 263 of the Income Tax Act. 5. That the Ld. Pr. CIT has erred in invoking the provisions of section 263 of the Act on the ground that the Assessing Officer had failed to make sufficient inquiries while passing the regular assessment order whereas the extensive inquiry had been made by the Assessing Officer during the original assessment proceeding, hence the directions given by the Pr. CIT to frame the fresh assessment is contrary to law. 6. That the Ld. Pr. CIT has erred in holding the capital expenditure of Rs 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the review of the assessment order dated 29.08.2017 in the case of the assessee by the Ld. Pr. CIT appearing at page 260-261 of the Paper Book. The Ld. AR submitted that while Item (iii) of the review states that sufficient evidence has been brought on record for additions made and these are properly discussed in the assessment order, the comments say otherwise. Therefore, it is apparent that the Ld. Pr. CIT has made contradictory statements. 3.1 The Ld. AR argued that the Ld. Pr. CIT has passed the impugned order under section 263 of the Act on the basis of audit objection which is contrary to the settled legal position and referred to the decision of Hon ble Punjab Haryana High Court in CIT vs. Sohana Woolen Mills (2008) 296 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thought to the rival submissions and perused the records. The Ld. Pr. CIT found from the assessment order dated 29.08.2017 for AY 2015-16 passed under section 143(3) of the Act that the assessee sold two properties and declared capital gain at Rs. 83,79,359/-. The cost of acquisition was claimed at Rs. 1,16,86,934/- incorrectly, and cost of improvement at Rs. 5,23,386/- for each property without submitting any supporting documents. He required the assessee to show cause why the assessment be not held to be erroneous and prejudicial to the interests of Revenue. The assessee submitted reply, a copy of which is at page 270- 292 of the Paper Book. Attention of the Ld. Pr. CIT was drawn to para 3 and 4 of the assessment order. In para 3 the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges were claimed towards cost of acquisition as it was one time charges paid for realising the enduring benefit arising out of the properties. Therefore, the expenditure was capital in nature and was capitalised in the books of account in the year in which it was incurred. During assessment proceedings the same explanation was submitted before the Ld. AO who after considering all the details had come to the conclusion that the assessee had correctly computed and declared the capital gain at Rs. 83,79,360/-. In such a scenario, in our opinion, the Ld. Pr. CIT had no jurisdiction under section 263 merely because the Ld. AO did not express his satisfaction in so many words in the assessment order as held in CIT vs. Reliance Communication Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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