2021 (10) TMI 1253

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....3) of the Act passed by the Assessing Officer, as erroneous and prejudicial to the interest of the Revenue. The grounds of appeal raised by the assessee are reproduced as under: 1. That Keeping in view facts of the case, the Hon'ble CIT erred in holding in the proceedings u/s 263 that the assessment order passed by the Assessing Officer is erroneous & prejudicial to the interest of the revenue. 2. The Hon'ble CIT erred in initiated the proceedings u/s 263 and directed Assessing Officer to pass fresh assessment order. The order passed u/s 263 deserves to be set aside. 3. That any order ground(s) that may be raised at the time of hearing. 2. Briefly stated facts of the case are that the assessee was engaged in trading of mobile hand....

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....es 1 to 112. The relevant portion of the notice, dated 21st March, 2018, issued under Section 263 of the Act by the PCIT, read as under: "3. You have sold 05 acres and 29 gunthas of the land situated in Survey No. 116/1,116/3 and 116/4 at Mauje Rahatgaon., Pargane Nandgaon Peth, Tal & District Amravati to one Ms. Janhvi Manoj Sabnis on 13.03.2013. This transaction of sale was registered at a stamp duty value of Rs. 1,61,00,000/-. As per record the land under consideration is not an agricultural land. The distance of Rahatgaon from Amravati is 4 kms. As such land under consideration is a Capital Asset. Thus, the sale of the property attracts Capital Gain as per the I.T. Act. The A.O. has merely verified the issue from the perspective that ....

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.... not does not make any difference to the taxability of the transaction. 'Transfer' in relation to a capital asset, as per section 2(47) of the Income Tax Act, has very wide ambit. 'Transfer' includes sale, exchange, relinquishment of an asset or extinguishment of any rights in an asset. This being so, the assessing officer ought to have looked into the issue from this perspective. It is however seen that in his notice dated 29.01.2016 the assessing officer has merely inquired whether the assessee paid the stamp duty for the transaction and whether capital gain tax was paid after the transaction. The assessing officer did not look into the issue of taxability at all. Very preliminary questions as above were asked. In fact, th....

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....to be purchased in the year 2003, however, the seller did not execute the registered sale deed, and thereafter, a protracted of litigation between the seller and buyer, a mutual compromise deed was entered into, and according to which, registered lease deed was entered into for 11 acres of land and thereafter, 5 acres of land was returned/transferred back by way of registered deed to the seller itself. Thus, there was no short term or long term capital gain on the sale of the land, even if the land is treated as capital asset. The provisions of Section 50C were also not applicable in view of the sale agreement entered into in the year 31.03.2013 at the circle rates and the section 50C came into operation w.e.f. 01.04.2013. The assessee has ....