TaxTMI 
TaxTMI 
2020 (12) TMI 1187
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....d on 25-01-2019 in invalid. 2.That the order purported to have passed u/s. 263 is bad in law and on the facts of the case and is liable to be held as a nullity. 3. That the assessee craves leave to add to amend or withdraw any ground as above on or before the hearing of the appeal. ITA No. 1124/Kol/2019 A.Y 2014-15 1. That on the facts, circumstances of the case and in law the notice issued on 25-01-2019 in invalid. 2.That the order purported to have passed u/s. 263 is bad in law and on the facts of the case and is liable to be held as a nullity. 3. That the assessee craves leave to add to amend or withdraw any ground as above on or before the hearing of the appeal. 2. At the time of hearing before us both the parties herein ha....
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..... 263 were to begin. Taking these facts and circumstances of the case, we find that assessee's legal ground in both the appeals are sance any merit. Hence, they are dismissed. 4. Regarding the ground on merits in both the appeals (ITA Nos. 1123 & 1124/Kol/2019 for the AY 2013-14) it was observed by the Ld. PCIT that during relevant financial year the assessee herein, Mr.Mohammad Ayub had purchased a residential flat jointly (co-owner of 50% share) with Smt. Hina Roohi, another assessee herein, in the project named 'Ideal Lake View' at Topsia, Kolkata and as per the Deed of Conveyance the purchase consideration was for Rs. 1,11,23,800/-, in addition, a further substantial stamp duty and registration fees were paid. It is evident from para 2....
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.... AR of the assessee appeared from time to time to represent his case and produced the details as called for including bank statements, cash book and other relevant papers, which were examined and test checked. The Ld. AR of the assessee submitted referring to page-6 of the P.B (paper book), wherein a letter has been submitted by the assessee to the AO explaining the detailed source of investments made in the said property. Thereafter, from pages 6-26 of the P/B all relevant information regarding the source of investment of the property, bank statement everything has been submitted/furnished before the Department. Thus, it was vehemently argued by the Ld. AR that the AO has made detailed enquiry of each and every aspect of the residential fl....
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.... Act. The Ld. DR could not refute the facts on record neither could place any evidence to show that no enquiry was done by AO regarding source of investment of the said flat. The Hon'ble Apex Court in Malabar Industries Ltd. vs. CIT [2000] 243 ITR 83(SC) wherein their Lordship have held that twin conditions should be satisfied before jurisdiction u/s 263 of the Act is exercised by the ld. Pr. CIT. The twin conditions which need to be satisfied are that (i) the order of the Assessing Officer must be erroneous and(ii) as a consequence of passing an erroneous order, prejudice is caused to the interest of the Revenue. In the following circumstances, the order of the AO can be held to be erroneous i.e. (i) if the Assessing Officer's orde....
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....ved that when the Assessing Officer adopts one of the course permissible in law and it has resulted in loss to the revenue, or where two views are possible and the Assessing Officer has taken one view with which the Ld. CIT does not agree, it cannot be treated as an order prejudicial to the interest of the revenue unless the view taken by the Assessing Officer is unsustainable in law. Reverting to the facts of the present case the AO has called for necessary details regarding the investment source in the said residential property and the assessees in their letter dt. 29.06.2016 received by the Department on 01-07-2016 has replied to all such queries and after such examination and enquiry only the AO has passed the assessment order, when inv....