TaxTMI 
TaxTMI 
2019 (4) TMI 694
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....e case, learned Commissioner was not justified in exercising revisionary powers under section 263 and thereby remitting the matter to the file of the Assessing Officer to "verify the claim and genuineness of the details/documents submitted by the assessee during the course of proceedings under section 263 of the Act". 3. To adjudicate on this appeal, only a few material facts need to be taken note of. The scrutiny assessment under section 143(3) was completed on 24th March 2015. Subsequently on verification of assessment records, the Commissioner formed the opinion that the "assessment was finalized without conducting proper investigation and enquiry, and prima facie, the assessment was erroneous and prejudicial to the interest of the reve....
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....is no specific mention in the assessment order as to why sale consideration is accepted and the stamp duty value is not adopted as sale consideration under section 50C. Learned Commissioner thus treated the order as erroneous and prejudicial to the interests of the revenue. On merits, learned Commissioner had no comments to make. He, however, directed the Assessing Officer to examine the matter afresh as per law and after giving a reasonable opportunity of hearing to the assessee. The assessee is aggrieved and is in appeal before us. 5. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. 6. We find that the Assessing Officer, vide letter dated....
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....duty valuation purposes, "where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed...by any authority". What is thus clear is that, on the face of it, the actual stamp duty valuation adopted by the assessing authority rather than what would be the right, even if that be different from actual, stamp duty valuation which ought to have been adopted by the stamp duty valuation authority. If the registration does not take place in the year of transfer and no stamp duty is actually assessed as such, then, of course, value assessable could come into play but that's not the case here. The reply of the assessee was thus less ....
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....es would make such an inquiry prudent that the word "erroneous" in section 263 includes the failure to make such an inquiry. The order becomes erroneous because such an inquiry has not been made and not because there is anything wrong with the order if all the facts stated therein are assumed to be correct." Of course, if the explanation given by the assessee was of the nature as could possibly satisfy any reasonable person, even if other view was possible, the situation would have been different. The explanation given by the assessee in this case, however, was simply not a legally possible view of the matter. Even in the oft quoted case of Malabar Industrial Co Ltd Vs CIT (243 ITR 83), Hon'ble Supreme Court has observed that "when an ITO a....