Indecisive Section 263 Revision Order Void: Delhi High Court

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Wed, Mar 14, 2012 at 10:04 AM
Subject: Message from EGroup of SolapurCAs Indecisive S. 263 Revision Order Void: Delhi High Court
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

ITO vs. DG Housing Projects Ltd (Delhi High Court)

S. 263 Revision: CIT must give finding on merits & cannot simply remand to AO

 

The assessee purchased property for Rs.69.63 lacs in 1997, yielding a rent of Rs.2.05 lacs per month, and sold it for Rs.70 lacs in 2003. The assessee claimed indexation loss which was accepted by the AO. The CIT passed an order u/s 263 holding that a high-yielding asset could not be disposed off at such a low value and that the assessment order was erroneous & prejudicial to the interests of the revenue as the AO had not examined the aspect of full value of consideration receivable by the assessee. The Tribunal reversed the CIT on the ground that he had not come to the conclusion that the actual receipt of consideration was more than what was declared in the return. On appeal by the department to the High Court, HELD dismissing the appeal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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