2023 (4) TMI 192

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....e grounds raised in the Appeal-Memo. 2. Heard the learned Representatives of both sides at length and case records perused. 3. Briefly stated the facts are such that the assessee filed her return of income of relevant AY 2015-16 at a total income of Rs. 65,31,390/-. While submitting return, the assessee declared a long-term capital gain of Rs. 73,50,020/- from relinquishment of right; claimed exemption u/s 54F of Rs. 52,53,008/- on the basis of new investment in a residential house; and thereby declared taxable gain of Rs. 20,97,012/-. The case of assessee was selected for scrutiny-assessment and the Ld. AO completed assessment u/s 143(3). Subsequently, the Ld. PCIT examined the record of assessment proceeding and viewed that the assessme....

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....ade: "Explanation 2 - "For the purpose of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interest of revenue, if in the opinion of the Principal Commissioner or Commissioner - (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) .... (d) ..." 6. Finally, Ld. PCIT concluded that the Ld. AO has not carried out the inquiry/verification which he should have done and hence the assessmentorder is erroneous in so far as it is prejudicial to the interest of revenue. Accordingly, the Ld. PCIT passed revision-o....

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....sessee. Later on the agreement was cancelled due to insolvency proceedings of Seller and Builder - M/s AG8 Ventures Ltd. (ii) Flat at Pune - This property was wrongly taken under the head Fixed Asset schedule of Assessee's Balance-Sheet, it actually belongs to the Mother in law - Smt. Meera Kotwani. After the death of Smt. Meera Kotwani, the property got transferred in name of Shri Mohan Lal Kotwani (Husband and Legal Heir). The registered land ownership documents in name of Smt. Meera Kotwani are at PB 48-57. (iii) Flat at Aakriti - In the computation of income, under the head "House Property" the flat No. A-7/404, Akriti Ecocity, Bhopal was shown. This was the only flat owned by the assessee on the date of transfer, which was let ou....

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....d a query as to who has made investment in the said property? It was further brought to the notice of Ld. AR that the Balance-Sheet is based on double-entry system and therefore if an asset appears in the Balance-Sheet of assessee, the assessee must have made investment although the impugned property is registered in the name of Smt. Meera Kotwani. It was further conveyed to the Ld. AR that unless some documentary evidence is brought on record to prove that the investment in impugned property was really made by Smt. Meera Kotwani, it would be safely presumed that the investment has been made by assessee and the assessee is de facto owner of property. To address this query of Bench, Ld. AR sought adjournments from time to time to bring on re....