2017 (3) TMI 1170

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.... of income for the year under consideration declaring total income of Rs. 1,48,42,606/-. The Assessing Officer completed the assessment under section 143(3) by accepting the return filed by the assessee. In the return of income, the assessee claimed long term capital loss of Rs. 32,83,177/- under section 45(1A) of the Act towards compensation received from the insurance company by adopting indexation cost of acquisition on account of assets destroyed in a fire accident in January, 2001. 3. Subsequently, by virtue of powers conferred under section 263, the Commissioner of Income Tax issued a show-cause notice dated 31/01/2014 to the assessee on the ground that the Assessing Officer has allowed the long term capital loss of Rs. 32,83,177/-....

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....ital asset as the same was already put to use. 4. On being aggrieved, assessee carried the matter in appeal before the Tribunal. 5. Learned counsel for the assessee submitted that the Assessing Officer has passed an order after considering all the facts under section 143(3), therefore, the order passed by the Assessing Officer cannot be considered that it is erroneous order. He also pointed out in the paper book at page No. 21, which is an undated letter written to the Assessing Officer in respect of details of insurance claim under section 45(1A) and submitted that the Assessing Officer after considering all the details, passed the order, hence, it cannot be said that the order passed by the Assessing Officer is erroneous order. Inso....

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....on 23/11/2011 by accepting the income return. We have carefully considered the order passed by the Assessing Officer and find that the Assessing Officer has not discussed anything about the provisions of section 45(1A) of the Act or section 50 of the Act. The Assessing Officer simply accepted the return filed by the assessee, allowed capital loss claimed by the assessee. The Assessing Officer not asked any query in respect of capital loss claimed by the assessee. Insofar as the submissions of the learned counsel for the assessee that in paper book at page No. 21 letter submitted to the Assessing Officer which is undated, it cannot be given much weight for the simple reason that when it is filed before the Assessing Officer is not clear. The....