TaxTMI 
TaxTMI 
2022 (6) TMI 75
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....ed facts relevant for the disposal of this appeal are that the assessee is an individual, and a medical practitioner at M/s.Matrika Hospital, Hyderabad. For the AY.2015-16, she filed her return of income on 30-09-2015 declaring an income of Rs.46,80,710/- which comprises of Rs.2,74,233/- towards income from house property, Rs.29,01,285/- towards income from business and profession and Rs.15,15,191/- towards income from other sources. It was noticed that the assessee did not declare any income towards capital gains, after claiming deduction of Rs.37,27,774/- u/s. 54 of the Act and Rs.47,77,180/- u/s. 54EC of the Act. 3. It was picked up for scrutiny to verify the large deduction claimed u/s. 54 of the Act and tax credit in ITR which is less....
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....- to have formed the long term capital gains received from both the properties and claimed to have invested Rs.37.50 lakhs in a residential property at the sixth floor of the building belongs to a firm, namely, M/s.Matrika Hospital. Assessee and her daughter are the partners of such firm. On enquiries, learned PCIT came to know that there is no transfer of property as required by law, through a registered sale deed in favour of the assessee; and further that the said property was shown as the commercial property of firm in their books, claiming depreciation upto AY.2014-15. Learned PCIT, therefore, formed an opinion that there should have been an enquiry by the learned Assessing Officer in respect of the nature of property acquired and whet....
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....not get changed. Assessee submits that the investment made by the assessee in the bonds in excess of the sale consideration of so called half a share of the assessee in the Sainikpuri property was made by way of bank cheque and the sale consideration was also deposited directly in the bank and, therefore, the genuineness of the transaction was not to be suspected by the learned Assessing Officer. Lastly, assessee contends that the assessee had the tax benefit @20% in respect of exemptions claimed for capital gains whereas the Matrika Hospital suffered taxes to the tune of 30% and, therefore, there is no prejudice to the Revenue at all. It is argued by the Ld.AR that the amount of consideration in respect of sixth floor was adjusted by the f....
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....ut by the learned PCIT justifies the action taken by the learned PCIT to set aside the assessment order with a direction to redo the assessment, keeping in view the mandate for assessment. He submits that in this case, it is not the question of sufficiency of enquiries but it is the lack of enquiries that prompted the learned PCIT to exercise jurisdiction u/s. 263 of the Act. Learned DR submitted that the twin conditions of Section 263 of the Act, namely, erroneous order and prejudicial to the interest of Revenue are satisfied in this case and, therefore, no interference with the impugned order is warranted. 10. Insofar as the delay aspect is concerned, the period under consideration is ordered to be excluded by the Hon'ble Apex Court ....
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....hould have called for material to show how the assessee got Rs.70 lakhs whereas the entire sale consideration received was Rs.63.50 lakhs in respect of the property at Sainikpuri wherein, without any dispute the assessee had only half a share. If the assessee got any additional amount towards the furniture and fixtures in the said property and the learned Assessing Officer having dealt with this issue by applying his mind, certainly this aspect would not be amenable for revision u/s. 263 of the Act. It is pertinent to note that neither the notice u/s. 143(2) of the Act calls for any information on this aspect, nor does the assessment order refer to any enquiries or material giving rise to the subjective satisfaction of the learned Assessing....
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....nto the matter. Having conducted the necessary enquiries, if the learned Assessing Officer reaches a conclusion, it should find its reflection on record either in the notice or questionnaire, if any, or the assessment order. Absolutely there is no support to the contention of the assessee that the learned Assessing Officer called for the material, applied his mind thereto and reached a plausible conclusion. It is, therefore, clear that for want of conducting enquiries, the assessment order is erroneous. 13. Now coming to the aspect of prejudice, contention of the assessee is that insofar as the acquisition of sixth floor of the hospital building is concerned, assessee gains the tax benefit at 20% whereas the hospital suffers the tax burden....