2022 (5) TMI 998

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.... return of income for the assessment year 2016-17 on 28.04.2016 declaring total income of Rs.35,47,800/- and agricultural income of Rs.5,96,250/-. The assessment has been completed u/s.143(3) of the Income Tax Act, 1961, on 25.09.2017 and determined total income of Rs.1,69,40,296/- by making additions towards disallowance of deduction u/s.54B of the Income Tax Act, 1961, amounting to Rs.1,33,92,500/-. The case has been subsequently taken up for revision proceedings and accordingly, show-cause notice u/s.263 of the Act, dated 26.10.2020 was served on the assessee. In response to show-cause notice, the assessee neither appeared nor filed any details. Therefore, the PCIT has passed order u/s.263 of the Income Tax Act, 1961, and has set aside a....

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.... of the property works out to Rs.76,82,8001- (5,37,796* 100/7). Hence an amount of Rs. 76,82,800 requires to be brought to tax under income from other sources u/s 56(2)(vii)(b) of the I.T.Act,1961. Thus, there was excess and erroneous claim in the computation of the LTCG in the year under consideration. Since these errors made the assessment order erroneous and prejudicial to the interest of Revenue, the provisions of section 263 of the Act was invoked in the Assessee's case. 4. In response to the above show cause notice none appeared nor filed any reply either by post or by e-mail. It is clear that the assessee has no objection on the proposed revision u/s 263 of the Income Tax Act, 1961. From a perusal of the facts above....

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....T to give one more opportunity of hearing to the assessee. 4. The learned DR, on the other hand, supporting order of the learned PCIT submitted that the assessee neither appeared nor filed any details in response to show-cause notice issued under section 263 of the Income Tax Act, 1961. Therefore, there is no error in the reasons given by the learned PCIT to set aside the assessment order passed by the Assessing Officer in exercise of powers vested u/s.263 of the Act and thus, appeal filed by the assessee may be dismissed. 5. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The learned PCIT has issued show-cause notice to revise the assessment order passed by the As....