2023 (10) TMI 1239

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...., the learned CIT has erred in coming to the conclusion that assessment order passed by learned AO u/s 143(3) dated 07.11.2017 is erroneous and prejudicial to the interests of the revenue and in setting aside the assessment order with a direction to the learned AO to conduct proper enquiry and examination. 2. Whether on the facts and circumstances, the learned CIT erred in not appreciating the fact that, the learned AO had examined the issue of long term capital gains and deduction claimed by the assessee u/s 54 by issuing show cause notices from time to time, and had thereafter accepted the claim of the assessee; thus the order cannot be termed as erroneous. 3. Whether on the facts and circumstances, the learned CIT grossly erred in ob....

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....17 as an erroneous one causing prejudice to the interest of the Revenue as under : "4. I have carefully considered the facts of the case and the assessment order along with the contentions of the assessee. So far as Assessment Order dated 14-11- 2017 is concerned I have gone through the order sheets and questionnaires issued by the AO. It is seen that while computing the long term Capital Gain, the assessee has claimed index cost of improvement for F.Y. 1989-90 of Rs. 12,94,586/- and for F.Y. 1991-92 of Rs. 2,71,180/-, Further during' the course of assessment proceedings it is seen that the AO had made a query regarding the cost of improvement claimed by the assessee. It was submitted by the assessee that he has not having any details of ....

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....circumstances, the assessee is not entitled to the indexed cost of improvement for F.Yrs. 1989-90 and 1991- 92 as claimed by him. The entire, expenses (i.e., indexed cost of improvement) amounting to Rs. 15,65,766/- (1294586+271180) will be required to be disallowed and added back to the total income of the assessee. The AO has failed to disallow the entire index cost of improvement which has resulted in under assessment of income and thus causing prejudice to the interest of the Revenue. 6. In view of the above narrated facts and circumstances of the case, considering the findings of the' Judgment of the Hon'ble ITAT/High Courts on the issue, and keeping in view .the Fairness, Judiciousness and Transparency of the facts as emerged ou....