2025 (2) TMI 820

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....03.2023 by Pr.CIT.Ahmedabad-1. A'bad (for short Pr. CIT) for AY 2018-19 holding that the excessive exemption u/s.54F was allowed by Rs.45,73,740/- in order of assessment u/s.14(3) passed on 19.02.2021 by AO is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. Pr. CIT has grievously erred in law and or on facts in holding that the order of assessment passed u/s.143(3) on 19.02.2021 by AO accepting exemption u/s.54F was erroneous and prejudicial to the interest of the revenue and directing the AO to withdraw the excessive exemption u/s.54F to the extent of Rs.45,73,740/-. 2.2 That the in the facts and circumstances of the Id. Pr. CIT ought not to have invoked the powers of revision u/s.2....

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....ition should be quashed." 3. The original return of income for the assessment Year (A.Y.) 2018-19 was filed on 27.07.2018 declaring total income of Rs.38,350/- which was revised on 25.08.2018 declaring total income of Rs.38,350/-. The assessee is an individual engaged in the business of purchase and sale of gold and silver ornaments. The return was processed under Section 143(1) of the Income Tax Act, 1961 and statutory notices were issued to the assessee which was replied alongwith various documents/evidences to the Assessing Officer. The Assessing Officer observed that the property sold by the assessee was an open plot purchased by the assessee on 24.05.1995 and sold on 08.06.2017 and the property sold was not building or land appurten....

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....pital gain under section 54F of the Act to the extent of Rs.28,27,380/- as per the computation given in order under Section 263 of the Act dated 15.03.2023 under Section 5 and hence the PCIT issued show cause notice thereby invoking Section 263 of the Act. After taking cognisance of the assessee's submissions, the PCIT directed the Assessing Officer to pass a fresh Assessment Order as the Assessing Officer allowed excess deduction under Section 54F of the Act to the tune of Rs.45,73,740/-. 4. The assessee filed appeal before the Tribunal 5. The Ld. AR submitted that the fact remains the assessee reinvested the sale consideration of the plot as per Section 54F guidelines and, therefore, genuinely claimed under Section 54F of the Act an....