TaxTMI 
TaxTMI 
2023 (12) TMI 202
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....as under : "1 & 2. PCIT erred in passing the order u/s 263 of the Act which is bad in law, illegal, ultra-virus, in excess of and/or in want of jurisdiction and otherwise void. 3. PCIT erred in holding that the AO ought to have taxed deemed annual letting value @5% of the value of closing stock of unsold flats u/s 23(l)(a) of the Act. 4. PCIT erred in holding that the Appellant not deducted TDS on advertisement expense aggregating to Rs. 3,17,700/- paid to Silk Route Communication and the AO ought to have made disallowance to the extent of Rs. 95,310/- u/s 40(a)(ia) of the Act. 5. The PCIT erred in holding that the interest on TDS of Rs. 17,385/- is N.A. not an allowable expense and the AO has failed to e....
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.... it under the head Income from House property. When there are two legally possible views and AO adopts one of them, the Assessment order cannot be said to be erroneous on this ground. 5. The ITAT Pune Bench in the case of Kumar Properties and Real Estate (P.) Ltd. Vs CIT 190 ITD 212 vide the order dated 28/04/2021 authored by the Hon'ble Vice President, R.S.Syal has held as under : Quote, " 11. The authorities below have canvassed a view that the annual letting value of flats/bungalows is income chargeable to tax as 'Income from house property' by relying on Ansal Housing Finance and Leasing Company Ltd. (supra). There is no doubt that the Hon'ble Delhi High Court in the said case has held that Annual letting value o....
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....l year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to be nil.' 13. A close scrutiny of the provision inducted by the Finance Act, 2017, transpires that where a property is held as stock-in-trade which is not let out during the year, its annual value for a period of one year, which was later enhanced by the Finance Act, 2019 to two years, from the end of the financial year in which the completion certificate is received, shall be taken as Nil. The amendment has been carried out w.e.f. 1-4-2018 and the Memorandum explaining the provisions of the Finance Bill also clearly provides that this amendment will take effect from 1-4-2018 and will, accordi....
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....ower in the revisional authority. This is a course of action that must be desisted from." 5.3 The Hon'ble High Court in the case of CIT v/s Mepco Industries Ltd. 294 ITR 121 (Madras) held as under : Quote, "8. Therefore, on the facts of the case, when two views are possible and it is not the case of the Revenue that the view taken by the Assessing Officer is not permissible in law, the CIT is not justified in invoking the jurisdiction under section 263 of the Act. " Unquote. 5.4 The Hon'ble Bombay High Court in the case of CIT Vs. Future Corporate Resources Ltd in IT Appeal No.1275 of 2017 vide order dated September 29, 2021 held as under : Quote ," 7. In the order of PCIT it is stated "in paragraph 4.3 of the assess....
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....er section 263 of the Act. 8. " Unquote . 5.5 Thus, the principle of the law emanating from the above decision of the Hon'ble Supreme Court, the Hon'ble Bombay High Court is that when two views are legally possible and Assessing Officer adopts one view the Assessment Order cannot be said to be erroneous for the Ld.CIT to invoke jurisdiction u/s. 263 of the Act. 6. In the case under consideration the AO has adopted one of the legally possible views qua Unsold Flats shown as closing stock. Therefore, the Assessment Order is not erroneous qua unsold flats shown as Stock. Accordingly, the Ground Number 3 of the assessee is allowed. TDS on payment made to Silk Route Communications : 7. It is observed that the assessee during the asse....