|The Tax Publishers2020 TaxPub(DT) 5396 (Mum-Trib)
INCOME TAX ACT, 1961
Pr. CIT had erred in concluding that the provisions of section 43CA are applicable in respect of a flat, held as stock-in-trade, transferred by the assessee prior to 1-4-2013 as undisputedly, the provisions of section 43CA were applicable only from assessment year 2014-15 and thereby erred in concluding that the assessment order passed by AO was erroneous and also prejudicial to the interest of revenue.
Revision under section 263 - Condition precedent - Assessment order, whether erroneous and prejudicial to the interest of revenue -
Pr. CIT, upon perusal of case records, invoked the provisions of section 263 and held that assessee sold flat which would attract the provisions of section 43CA which was not considered by AO and therefore, the order was erroneous and prejudicial to the interest of the revenue. Held: The sale has been offered prior to 1-4-2013 only due to the fact that the assessee was following project completion method. Undisputedly, the provisions of section 43CA were applicable only from assessment year 2014-15. It was another fact that details of agreement value as well as stamp duty value was already placed before AO during the course of original assessment proceedings and AO chose not to invoke the provisions of section 43CA. This being the case, the revisional jurisdiction as exercised by Pr.CIT could not be sustained in the eyes of law. The primary condition to invoke the provisions of section 263 remains unfulfilled.
FAVOUR : In favour of assessee.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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