2022 (8) TMI 453

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....ome Tax Officer, Non-Corporate Ward - 1(3), Coimbatore for the Assessment Year 2015 - 2016 u/s.143(3) of the Act vide order dated 27.11.2017. 2. The only issue in this appeal of the Assessee is as regards to the revision order passed by the Principal Commissioner of Income Tax u/s.263 of the Act revising the assessment framed by the Assessing Officer u/s.143(3) of the Act for the Assessment Year 2015 - 2016. 3. At the outset, it is noticed that the appeal of the Assessee is barred by limitation by 637 days and Assessee has filed a condonation petition supported by an affidavit. The order of the PCIT revising the assessment u/s.263 of the Act was received by the Assessee on 06.03.2020 and that the appeal was supposed to be filed on or befo....

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....nd and third floor of the existing building to the extent of about 2600 Sq.Ft. and 1500 Sq.Ft. respectively. The Assessee has claimed deduction u/s.54 of the Act at Rs.1.30 crores; whereas the Assessee furnished an evaluation report from the registered Evaluator; wherein the actual cost shown is Rs.1,03,55,000/-. Hence, the differential amount of the claim of deduction of Rs.28,45,000/- was added to the retuned income of the Assessee. The Assessing Officer examined the claim of deduction u/s.54 of the Act. 5. Subsequently, the Principal Commissioner of Income Tax issued a show-cause notice for the reason that the Assessee's claim of Rs.26,85,902/- towards the cost of improvement is not supported by any material evidences and also that the ....

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....Officer; it was passed while giving effect to the order of the revision u/s.143(3) of the Act read with Section 263 of the Act accepting the claim of the Assessee. 9. The learned Counsel for the Assessee stated that this issue of rental income under the head 'income from house property' was less admitted at Rs.60,000/- and was never before the Assessing Officer during the course of the limited scrutiny assessment and hence, this cannot be a subject matter of revision u/s.263 of the Act. 10. We have gone through the original assessment order and the show-cause notice issued u/s.143(2) of the Act by the Department on 18.09.2017 and noted that the limited scrutiny was for the purpose of examining the claim of deduction from the capital gains....