Land-sale capital gains: whether land was urban within municipal limits u/s2(14); s.263 revision upheld for no inquiry

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Whether the assessment order was amenable to revision under s.263 for failure to examine taxability of gains from sale of land turned on the absence of inquiry into whether the lands were urban land within municipal limits and hence a "capital asset" under s.2(14). The AO's order addressed only cash deposits and contained no verification or reasoning on the land-sale transactions, effectively accepting the return in a summary manner. Applying s.263 read with Explanation 2 and the principle in Malabar Industrial Co. Ltd. that lack of inquiry renders an order erroneous and prejudicial to Revenue, the revision was upheld and the assessee's challenge was rejected - ITAT....