TaxTMI 
TaxTMI 
2022 (4) TMI 743
X X X X Extracts X X X X
X X X X Extracts X X X X
.....3 of 2020, if the period of delay is covered within the period specified in the order of the Apex Court , then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic. 3. The learned AR, on the other hand, fairly agreed that delay may be condoned in the interest of justice. 4. Having heard both sides and considered reasons given by the learned AR for the assessee, we find that the Hon'ble Supreme Court in suo motu Writ Petition No.3 of 2020, has extended limitation applicable to all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we condone delay in filing appeal filed by the assessee and admitted for adjudication. 5. The assessee has rais....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se assessment order on the ground that the assessment order passed by the Assessing Officer is erroneous insofar as, it is prejudicial to the interests of revenue on account of non-consideration of difference in sale value shown in registered document, when compared to guideline value fixed by the authorities for stamp duty purpose in computing long term capital gain. The Principal CIT further noted that the assessee has claimed cost of improvement being expenses of fencing, bore well, compound wall and levelling which has not been thoroughly examined by the Assessing Officer. Further, the assessee has adopted fair market value of the property as on 01.04.1981 at Rs. 5,500 per cent, whereas Tamil Nadu registration value was Rs. 2,380/- per cent as on 01.04.2003. These facts have not been examined by the Assessing Officer which rendered the assessment order as erroneous and prejudicial to the interests of revenue. 7. In response to the show cause notice, the assessee submitted that assessment order passed by the Assessing Officer is neither erroneous nor prejudicial to the interests of revenue, because very purpose of limited scrutiny assessment in the present case was to examine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....said that there is prejudice to the interest of the revenue. Therefore, he submitted that assessment order passed by the Assessing Officer cannot be treated as erroneous, insofar as it is prejudicial to the interests of revenue to invoke jurisdiction by the Principal CIT. 9. The learned DR, on the other hand, supporting order of the learned PCIT has filed written submissions on the powers of the Principal CIT u/s.263 of the Act. The relevant contents of written submissions of the Principal CIT are reproduced as under:- "1. By the insertion of Explanation 2 to the section 263 of the Income Tax Act by the Finance Act, 2015 w.e.f. 01.06.2015, the revisionary powers of Pr. CIT/CIT has been enlarged and an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the PCIT/CIT; (a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficer was erroneous and prejudicial to the interests of the revenue, the Commissioner is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct a fresh assessment. The Commissioner is fully competent to adopt any one of the three causes indicated by the said provision. [Para 13] 5. Jurisdictional HC of Madras in the case of M/s. Lakshmi Vilas Bank v JCIT, in TCA No.1370/2008, relied on the decision of the SC in the case of CIT v Amitabh Bachchan (2016) 384 ITR 0200 and held that final order u/s 263 need not be out of the issues raised in the notice as the issue of show cause notice itself is not mandated u/s 263. What is mandatory is that the assessee should have been provided opportunity to express his explanation son the issue. 6. Hon'ble HC of Bombay at Goa in the case of MIs. Vedanta Ltd, vs CIT, in Tax Appeal No.1/2016 with Civil Application No. 17/2016 have dismissed the assessee's appeal holding that though the matter raised u/s 263 had been considered by the AO in the original order, when the CIT exercis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erence arrived at by the Principal CIT, it is less than specified percentage allowed under the Act, in terms of provisions of section 50C(3) and 55A(b)(i) of the Act. Even assuming for a moment, the Assessing Officer has not considered the above issue, but definitely it cannot be said that said issue is prejudicial to the interests of the revenue, because even if, the Assessing Officer has considered the issue the A.O. cannot make any addition, because difference in value shown in sale deed, when compared to guideline value is less than specified percent. Therefore, in our considered view on this issue, the Principal CIT cannot revise the assessment order. As regards, cost of improvement claimed by the assessee, including expenses incurred on fencing, bore well, leveling of plot and building, it was the case of the PCIT that although, the assessee claimed various expenditure, but the Assessing Officer had not examined the claim. We do not find any merit in findings of the Principal CIT for simple reason that very purpose of limited scrutiny assessment was to examine long term capital gain computed by the assessee. From the assessment order, it is very clear that the Assessing Offic....