2026 (10) TMI 202

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....y that order, the tribunal has allowed the appeals filed by the assessee against the order of the Principal Commissioner of Income Tax, Ghaziabad dated 08.03.2021 under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). Revenue claims exception to the Circular governing the institution of revenue appeals, on the strength of the proceedings arise under Section 263 of the Act. 3. The Tribunal has allowed the appeals on the following reasoning: "16. Considering the peculiar facts, record and reliance on the decision of Anil Kripalani, as per ratio of the above decision, it was held that the provisions of Section 55A(a) of the Act cannot be applied and no reference is possible to be made to the D....

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....onsidering the overall information available with the registered valuer had estimated the FMV for specific purpose of capital gain. 17. Considering the above facts on record and the case law relied by the Ld DR are distinguishable, in our considered view, the order passed by the AO may be prejudicial to the interest of the revenue but not erroneous, therefore, the order pansed u/s 263 is set aside. Therefore, the assessment order passed u/s 143(3)/254 of the Act dated 24.12.2018 is not erroneous in so far as it is prejudicial to the interest of the Revenue. Accordingly, we are inclined to allow the appeal filed by the assessee. 18. With regard to ITA No. 884/Del/2021, we observed that the issue involved is exactly similar to the facts in IT....

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.... an Approved Valuer's report. To that extent, the Tribunal has reasoned that though the revenue may claim that the order is prejudicial to the interest of the revenue, it may not be erroneous inasmuch as the order may have been passed on the strength of the report of the Approved Valuer, as well. 6. Leaving that issue apart, at present, we note, against loss return Rs. 2,29,920/-, if the DVO report is accepted, the tax difference would be about Rs. 7 lakhs. 7. We recognize that by way of a principle, the revenue may be entitled to claim exception to the applicability of the CBDT Circular (governing the monetary limit for filing appeals), arising out of proceedings under Section 263 of the Act), at the same time, it cannot be lost ....