Tribunal overturns CIT order under sec 263 for assessment year 2008-09, remits for fresh consideration

The Tribunal allowed the appeal of the appellant for statistical purposes, setting aside the CIT's order under section 263 of the Income Tax Act for assessment year 2008-09. The matter was remitted back for fresh consideration with an emphasis on the appellant providing an explanation, taking into account the decision in Addl.CIT v. Durgamma.

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Issues involved: Appeal against order u/s 263 of the Income Tax Act for assessment year 2008-09.

Summary:
The appellant, an HUF, filed its return for the assessment year admitting total income. The Assessing Officer accepted the net capital gains working and completed the assessment. Subsequently, the Commissioner of Income Tax issued a notice u/s 263, stating the assessment order was erroneous and prejudicial to the interest of Revenue regarding the claim of exemption u/s 54F. The appellant did not appear for the hearing, and the CIT directed the AO to pass a fresh order. The appellant appealed to the Tribunal, arguing that the order u/s 263 was bad in law as the father of the HUF was not assessed to tax. The Tribunal set aside the CIT's order, remitting the matter back for fresh consideration, emphasizing the need for the appellant to provide an explanation. The decision in Addl.CIT v. Durgamma was also to be considered.

In conclusion, the appeal of the assessee was allowed for statistical purposes.

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