June 2019

Section 263 If a matter is examined by the Assessing Officer during the course of assessment and consciously accepts the plea of the assessee, the order can still be subjected to revision u/s. 263 of the Act if the view adopted by the A.O. is unsustainable in law

JAGDISH T. PUNJABI | DEVENDRA JAIN | TEJASWINI GHAG
Chartered Accountants

14

[2019] 104 taxmann.com 155 (Ahmedabad)

Babulal S. Solanki vs. ITO

ITA No. 3943/Mum/2016

A.Y.: 2012-13

Dated: 4th March, 2019

 

Section 263 If a matter is examined by the Assessing Officer during the course of assessment and consciously accepts the plea of the assessee, the order can still be subjected to revision u/s. 263 of the Act if the view adopted by the A.O. is unsustainable in law

 

FACTS

The Commissioner, on verification of assessment records of the assessee, observed that while computing capital gains from transfer of land by the assessee, sale consideration was taken instead of the jantri value, which was higher, and therefore the difference between the jantri value and sale consideration remained untaxed. He opined that the assessment order passed by the A.O. was erroneous and prejudicial to the interest of the Revenue.

 

The assessee, however, submitted that this aspect was specifically examined by the A.O. and his claim was allowed after due verification of the records and details pertaining to the sale of land.

 

The Commissioner did not accept the contention of the assessee and held that since there was no mention by the A.O. as to why the stamp duty value was not adopted as full value of consideration, the matter was not examined and thus he directed the revision of the assessment order u/s. 263 of the Act. Aggrieved, the assessee preferred an appeal to the Tribunal.

 

HELD

The Tribunal noted the decision of the Supreme Court in the case of Ma

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