Revisional action under s.263 set aside; mutuality surplus non-taxable and s.50 inapplicable on office sale

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT held that the invocation of revisional jurisdiction under s.263 by CIT(E) was unsustainable and set aside the impugned revisional order. The Tribunal found that the assessee operates as a mutual concern and, absent any AO finding to the contrary or a claim of depreciation by the assessee, surplus within mutuality is not taxable and s.50 could not be applied to treat the sale of the office premises as generating short-term capital gain. Consequently, there was no requirement for the AO to make further inquiry; the assessment order was restored and the assessee's appeal was allowed.....