Income Tax Appellate Tribunal - Chandigarh
Sh. Mahesh Chugh, Chandigarh vs Pr.Cit-2, Chandigarh on 21 April, 2022
आयकर अपीलीय अिधकरण,च डीगढ़
अिधकरण च डीगढ़ यायपीठ ''बी.'', च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH 'B' CHANDIGARH
BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER &
SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No. 104/CHD/2021
Assessment Year : 2015-16
Shri Mahesh Chug, बनाम The Pr. CIT-I,
# 3113, Sector 28-D, VS Chandigarh-2.
Chandigarh.
थायी लेखा सं./PAN /TAN No: ACZPC8060H
अपीलाथ /Appellant यथ /Respondent
िनधा रती क ओर से/Assessee by : Shri Tejmohan Singh, Advocate
राज व क ओर से/ Revenue by : Shri Sarabjeet Singh, CIT-DR
तारीख/Date of Hearing : 09.03.2022
उदघोषणा क तारीख/Date of Pronouncement : 21.04.2022
HEARING VIA WEBEX AND PHYSICAL COURT
आदेश/ORDER
PER DIVA SINGH The present appeal has been filed by the assessee assailing the correctness of the order dated 20.03.2020 of Pr.C I T-2 , C ha n d i g a rh p e r ta i n in g to 2 0 1 5-1 6 a s se s sme nt ye a r on th e fo ll ow i ng gr ou nd s :
1 . That the Ld. Commissioner of Income Tax has wrongly assumed jurisdiction under section 263 of the Act to set-aside the assessment order dated 08.12.2017 passed by the Assessing Officer in as much as the order is neither erroneous nor prejudicial to the interest of Revenue and as such the assumption of jurisdiction under section 263 of the Act is beyond his competence.
2 . That the Ld. Principal Commissioner of Income Tax has failed to consider that the case of the assessee was picked up for limited scrutiny and the issues in that regard including sale/purchase of property, indexed cost, etc. were thoroughly looked into and as such the assessment order passed was neither erroneous not prejudicial.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 2 of 25 3 . That the Ld. Commissioner of Income Tax has erred in failing to consider the various replies and submissions placed on record in proceedings before her in the correct perspective which is arbitrary and unjustified. 4 . That the evidence placed before the Ld. Principal Commissioner of Income Tax has not been looked into by the PCIT himself and the matter cannot be sent back to the Assessing Officer without making any enquiry which renders the order illegal, arbitrary and unjustified. 5 . That the assessment order having been passed by the Assessing Officer after due application of mind and taking into consideration the various replies and material on record, the action resorted to by the Commissioner of Income Tax is unwarranted and uncalled for. 6 . That the order of Commissioner of Income tax is erroneous, arbitrary, opposed to the facts of the case and is unsustainable in law.
2. Th e he a r i n g i n the p re se nt ca se e f fe ct ive l y too k p la ce on 0 2 .0 2 .2 0 2 2 on w hi ch d a te the l d . AR a nd the ld . D R mor e or l e s s ma de thei r c omp le te su bmi ss io ns on f a ct s a n d l a w , h ow e ve r , the s ub mi ssi on s of the l d . DR we re i ncomp le te to th e e xte n t t ha t he sou gh t ti me t o ve ri f y p r ope r ly f r om th e r e c or d t he c a l cul a ti on s ma d e a v a il a b le by the ld . AR. Ac cor d i ng ly, ti me w a s g ra n te d a nd t he a p pe a l w a s a d j our n e d to 0 9. 0 2. 2 0 22 . O n th e s a i d da t e , d ue to me d ic a l r e a son s, th e c oun se l wa s un a b l e to r e p re se nt. Th e a p p e a l s tood a d j our n e d a cc or di n gl y to 2 3 .0 2 . 202 2 h ow e ve r , on ac cou nt o f th e on goi ng s tr ike o f Ele c tr ic it y D e p a r tme n t, the re we re mul ti p le c onn e c ti vi ty is su e s i n the he a r i ng c ond u cte d vi a W e be x . Acc ord in gl y, th e hea r i n g was a d jou r ne d to 0 2 .0 3 .2 0 2 2 . Si n c e on t he sa i d d a te , p hy si ca l h e a r in g ha d st a rt e d a n d b oth th e si de s re ma in e d bu sy b e fo re th e other C ou r t, th e he a r ing u lt ima te ly con cl ud e d on 0 9 . 03 . 2 02 2 in th e ph ys ic a l C our t.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 3 of 25
3. B e f ore a d dre ssin g th e spe ci fic g ri e v a nce of th e a ss e s see , i t i s pe r ti ne n t to a d d re s s the de l a y of 3 5 5 da y s p oi nte d ou t by the Re gi str y. Th e l d . AR i n the h e ar in g vi a W e be x ha d in vi te d a tte nti on to th e A ff id a v it f il ed b y th e a ss e s see . Re l ying on th e sa me , he ma d e a pr a ye r t ha t the delay ma y be con do ne d in vie w of the e x tra -or d in a r y p r e va i l in g P a ndemi c co nd i tio ns . F or r e a d y re fe re n ce , the Af f id a vi t of th e a sse sse e re l ie d up on by th e ld. AR is e x tr a cte d he re u nd e r :
Affidavit I. Mahesh Chugh son of Late Jatinder Lai Chugh, age 54 years resident of House No. 3420, Sector 27D, Chandigarh do hereby solemnly affirm and declare as under: -
1. That I have received the order of Commissioner of Income Tax - 2, Chandigarh on 31.03.2020 for the assessment year 2015-16 against which an appeal was to be filed by 30.05.2020.
2. That the appeal was filed on 20.05.2021 which is late by 355 days as per show cause notice issued by the ITAT.
3. That the order was received by the Counsel during the lockdown period which was imposed due to Covid - 19 Pandemic and as such the appeal could not be filed in time.
4. That in view of the raging pandemic, the Supreme Court of India Suo moto in "Cognizance for Extension of Limitation" reported in 432 ITR 206 has extended the timelines for filing appeals under all laws, including the Income Tax in the case. Accordingly, the original deadline of 60 days for filing appeal, which was expiring on 30.05.2020 stands extended.
5. That the period from Marchl5 2020 till March 14 2021 stand excluded as per the decision of the Hon'ble Supreme Court. As such, the instant appeal was to be filed by 12th of May 2021. Thus there was a delay of only 8 days.
6. That unfortunately my Counsel Sh. Arvind Mehta Advocate expired due to Covid-
19 on the 05.05.2021 after being hospitalized for almost a month. Copy of the death certificate has not been issued till date because of Covid.
7. That one of his office staff looking after Income Tax Matters Sh. Vinod also expired in the month of April 2021.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 4 of 25
8. That I contacted Shri Tejmohan Singh, Advocate for filing of appeal after files from the office of Late Sh. Arvind Mehta Advocate and the appeal was filed on 20.05.2021.
Sd/-
Deponent Verification:
Verified that the above noted contents of my affidavit are true and correct to the best of my knowledge and belief and nothing has been concealed therein. Dated: 07.06.2021 Sd/-
Deponent 3 .1 . Acc or d in gl y, p la c i ng he a vy re l ian ce on the ag gr ava t in g ci r cu msta n ce s a s s e t ou t in th e a f or e sa i d a p pl i ca ti on a nd a f fi d a vi t, i t w a s h i s p r a ye r th a t the de la y ma y b e con d one d.
3 .2 . The l d. C I T-D R con si d e r i ng th e c onte n ts of th e a p p li ca t ion a n d t he re cor d p ose d no o bj e c ti on in ca se the d e l a y is c ond oned .
3 .3 . I n the l i gh t of th e sub mi ss ion s of th e p a r tie s b e f ore th e Be nc h, cons id e r i ng the p e c ul ia r c ir c ums ta nc e s as b r oug ht o n r e cor d w hi ch a r e n ot i n d is pu te a nd th e p os it ion of la w a s r e l ie d up on w e dee m it a p pr op r i a te t o con d one the d e l a y. Sa t is fie d b y the e xp l a na tio n of f e re d , the d e l a y i s, a cc or d in gl y, c ond on e d . O r de re d ac cor d i ng ly.
4. Th e l d . AR , a cc or di n gl y, w a s d i re cte d to a d d re ss the gr i e v a nce of the a sse ssee in th e a pp e a l f i le d. On b e h a lf of th e a s se sse e , it was sub mi tte d at th e outs e t tha t th e a ss e s see d oe s not w is h to spe c if i ca l ly pr e ss gr ound N o. 2 a s th e is sue w o ul d st a nd a dd r e s se d by the ot he r gr ou nd s.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 5 of 25
5. I n the s a id b a c kg r oun d , a d d r e s sing th e g ri e v a nce pos e d on b e h a lf of t he a ss e ssee vi de G r ou nd N o s. 1 ,3 , 4, 5 a n d 6, th e l d . A R ca rr yin g th e Be nc h t hrou gh the a sse ssme n t or d e r d a te d 08 . 1 2. 2 01 7 p a s se d u/s 14 3 ( 3) a nd th e imp u gne d or d er un d e r cha l le n ge of th e ld . P C I T-I I C ha n d i ga r h su b mi tte d th a t i n th e f a cts a nd ci r cu msta n ce s of the pre se n t ca se , the re i s n o e r r or le t a lone a n e r r or w hich ca n b e con sid e re d to be p r e j ud i ci a l to the i n te re s ts of th e Re ve n ue . It wa s his su b mis si on th a t co mp l e te f a cts h a ve bee n ta k e n i n to co ns id e r a ti on b y t he AO a n d ha ve be e n f ul ly a dd re sse d b y th e a sse ss ee . Th e f a ct s a r e f ully a d d r e ss e d a ga in b y th e a ss e s see be f ore th e ld . P CI T. The S how C a u se N oti ce i ssue d b y th e l d . P C I T, i t w a s s ub mi tte d , ha s b e e n e x tr acte d i n the i mpu gn e d or d e r it se l f, c op y o f t he sa me , it w a s su bmi tte d , h a s a l so be e n se p a ra t e l y f ile d a t P a p e r B ook p a ges 2 5 to 2 7. I t wa s hi s s ub mi ssi on tha t thi s show c a use not ice h a s b ee n r e p l ie d to b y th e a sse ssee . Th is r e p l y is a p p e n de d a t page 2 8 t o 30 of the P a pe r B oo k. P a rt o f th e same , i t w as su b mit te d , h a s b ee n e xt ra c te d i n th e i mp ugn e d ord e r itse l f. C on si d e r i ng the sa me , th e l d. P C I T ul ti ma te ly co nc l u de d th at to the e x te n t of to Rs . 1 0 . 15 lacs i .e . the r e n ova t ion e x pe nse s cl a i med f or de du ct ion u/s 5 4F w a s su c h a n e r r or w hi c h wa s p r e j ud i ci a l to th e in te re sts of t he Re ven ue . I n the sa i d b a c kg ro un d, c a r ry in g the Be nc h t hr ou gh p a r a 3 a n d 3 .1 ITA 104 /CHD/2021 A.Y. 2015-16 Page 6 of 25 of the i mp ug ne d or d e r , it w a s s ub mi tte d th a t a l l the se d e ta i l s we re be fo re the AO a n d we re co ns id e re d. W i thou t p r e j ud i ce to the s a id a rg ume n t, i t w a s su b mit te d th a t e ve n if f or a mo me nt it is con si d e re d that th e se we re not b e f ore A O, th e fa ct on re c or d i s t ha t th e se w e re fi le d be fore l d. P CI T. N o e r r or in the se d e t a il s of c on stru cti on cos t ma d e a v a il a b l e to th e Re ve n ue h a s b ee n b r ought on re cor d . Atte nt ion w a s i nv it e d to the f a ct s. The a sse ssee r e pre se n te d b y its co un sel S hr i Ar v in d Me h ta a s n ote d b y th e ld . P CI T h i m se l f in h i s or d e r a tte nde d t he pr ocee d i n gs a n d fi l e d de ta i ls of e xpe n se s f or con st ru ct ion /r e n ova ti on of h ous e N o. 31 1 3 S e ct or 2 8 D, C h a nd i ga r h. I t wa s s ub mit te d t ha t tho ugh th e ld . P C I T r e c or ds th a t the se we re not fi le d d ur i ng the ass e ss me nt p r oce e d in gs w hic h is sue is dis pu te d by the a ss e ssee, h ow e ve r , si nce th e cou nse l w h o w a s a pp e a ri n g ha s e xp ire d, n o a f fi d a vi ts e tc. c a n b e now fi l ed . I t w a s a r gue d th a t th e f a ct r e ma i ns that t he se we re ma d e a v a il a b le to th e l d. P CI T a n d th e l d . P CI T doe s not f a ul t a ny of th e se de ta i l s. He d oe s n ot p oi nt out to a n y e r r or i n the cl a i m of the a ss e ss ee . Th e su p po rt in g cl a im , i t w a s sub mi tt e d, i s b a se d on fac ts a nd e v ide nce s a n d c o-r e l a te d w i th p a yme nts b y ch e q ue fr om th e b a nk s to a la r ge e xte n t. Th e l d . PC I T i gn or in g th e e vi de n ce s ma d e a va i l a bl e me re ly p r ocee d s to c a nc e l a n d set a si d e the va l i d ly p a s se d a s se s sme n t or der f or con si de r a ti on af r e sh ITA 104 /CHD/2021 A.Y. 2015-16 Page 7 of 25 w i thou t p oi nti n g to a n y e r r or j ust if yi ng t he susp ic ion . It w a s h i s su b mi ss i o n th a t th e s a id a ct ion of the ld . PC I T w a s co ntr a r y to the se tt le d le ga l p osi ti on a s ha s be en v a ri ou sl y a d d r e sse d by th e C our ts . Th e p owe r to se t a si d e the a ss e s sme n t or der u/s 2 6 3 , it w as s ub mi tte d, is ve ste d wi th th e l d . P CI T fo r a sp e c if i c p ur p os e . I t w a s hi s sub mi ss io n th a t a s p e r l a w , i t w a s to be e xe r ci se d w i th d ue car e a nd ca u ti on p oi nti n g o ut to the e r r or i n the or de r s oug ht to be se t a si de a nd th e e r r or s ho ul d b e of s uc h ma gn i t ud e w hi ch ca n b e sa i d to be p r e j ud i ci a l to t he i nte re sts of th e Re ve n ue. Th e C ou rt s h a ve v a r iou sl y h e l d th a t th is po we r sh oul d b e e xe r ci se d cle a rly p oi nt in g out t he e r r or , it c a nn ot be e xe r ci se d w h ims ic a ll y or a r bi tr ar i ly . Ad d re ss ing th e le ga l p osi ti on on the iss ue , i t w a s su bmi tte d th a t th e C o ur ts ha v e r e pe a te d ly he ld th a t i t i s i n cum b e n t u po n the ld . PC I T to sp e ci fi ca l l y p oi n t ou t the e rr or . I t w a s a r gue d tha t me r e l y b e c a use the re i s a su sp i ci on th a t s ome mor e de ta i ls w e re n ot ca l l e d fo rt h b y the AO , t ha t i tse lf c a nn ot b e a g roun d to se t a si d e the or de r . Th e de ta i ls wer e a va i l a ble to the AO a nd w e re a l so f ile d b e fo re t he l d . PC I T. I t wa s c once de d th at tod a y h e i s n ot in a p osi ti on to ca t e gor i ca l l y s ta te w he the r th e se de ta i l s we re sh ow n to th e A O or n ot a s S h ri A r vi nd Me h ta , C A w ho wa s ta k i ng ca re of the a sse s see 's ca se be f ore th e AO a n d a p pea r e d be f ore A O as w e l l a s b e f ore the l d . P CI T ITA 104 /CHD/2021 A.Y. 2015-16 Page 8 of 25 un f or tun a te l y is n o mor e a s he p a ss e d a w a y in th e COVID ti me s . A s a re su lt of t hi s u nf or tu na te fa c t, he w oul d no t b e i n a p osi ti on to ca te gor i ca l l y s tate th a t the e vi den ce s we re a va i l a b le to the A O . H ow e ve r , t he su sp ic io n th a t th e i ss ue s h a d n ot b ee n en q ui r e d in to b y th e AO , i t w a s a r gue d , i s un f oun d e d .
5 .1 Atte nti on w a s i nv it e d to P a pe r B oo k p a ge 1 a n d 2 w hi ch i s q ue s ti onn a i re d a te d 0 5. 1 2 .2 01 6 i ssu e d b y the A O i n the co ur se of the a sse ss me n t p r ocee d ing s. I t w a s a r gued t ha t the i ssu e w a s fu ll y l ook e d i nt o b y th e A O wh o be i ng sa t is fi ed w i th th e a n swe rs to the q ue r ie s r a is e d in the ass e ss me n t p r oce e d in gs a ccep te d the c la i m w h ic h c onc lu d e d in a n or d e r p a ss e d u /s 1 43 ( 3 ) d a te d 0 8. 12 .2 0 1 7. Re fe r r in g to th e q u e sti on na i re da t e d 0 5. 1 2 .2 0 16, s pe ci fi c a tten ti on was i nv it e d to q ue sti on 4 a nd 5 of the sa me . Fo r ready r e fe re n ce , the same i s e xtr a cte d he re un de r :
No.ITO/Ward-5(1) /CHD/2 015-16 Office of the Income Tax Officer, Ward-5(1), Room No.619, Aayakar Bhawan, Sector-17, Chandigarh.
Dated:05-12-2016 To SH. MAHESH CHUGH, H.NO.
3420,SECTOR27-D, CHANDIGARH.
PAN: ACZPC8060H Sir, Sub. : Assessment for the assessment year 2015-16- Regarding-
Please refer to the assessment proceedings in your case for the above mentioned assessment year.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 9 of 25
2. To enable the undersigned to frame assessment in your case, you are required to furnish/intimate/explain the following on the time & date as mentioned on the notice- u/s 142(1) of the Act issued separately:
1.........................
2........................
3.........................
4. As per information available with the department you have made large investments in the immovable properties. Please furnish the details of the immovable properties purchased by you in your name or in the name of your family member alongwith source of investment.
5. Please furnish the details of deductions claimed u/s 54 along with copies of sale/purchase deeds of properties and calculations of LTCG.
This information is being called for under section 142(1) of the Income Tax Act,1961 and should be furnished on 22.12.2016 at 11:45 A.M.." 5 .2 . Re fe r r in g to t he a b ove q ue r ie s, i t w a s s ub mit te d , th a t th e re c a n be n o d oub t th a t th e i ss ue w a s fu ll y e xa min e d b y th e AO . W h e n c ons id e re d w i th th e con str u cti on d e t ail s ma d e a va i l a b le t o t he l d . P C I T w he r e i n no f a ul t h a s be e n p oi n te d ou t, i t wa s a rg u e d th a t the e xe rc is e of p owe r s i s w hi msi ca l a n d a r b it ra r y .
5 .3 Re ve r ti ng to th e r e cor d , a tte nti on w a s i nv it e d to r e p ly of th e a sse ssee ap p e n de d the re t o a t P a p e r B o ok p age s 3 to 5. C op y of the re t ur n fi l e d a l on gw ith the co mpu ta ti on , it w a s su b mit te d , is a t p a ge s 6 to 1 1 . Sp e c if i c a t te n ti on w a s i n vi te d to th e sa le consi d e r a ti on re ce ive d for p lot N o. 1 8 2 /4 9, I n d us tr ia l A re a , P ha se -I w h e re in th e a s se s se e had 50% sh a r e , v a l ue of w h i ch u /s 50 C w a s Rs. 1 .5 5 C r o r e s. A fter r e d uc i ng the p urc ha s e cost a n d th e I nde x C os t e tc. , the d e d uc ti on u/s 5 4F of Rs. 1 , 28 , 9 1 , 0 83 /- wa s c la i me d . Th e i nv e st me nt in h ous e p r ope r ty u/s 54 F w a s ma d e to th e t une of Rs . 1, 5 5 ,0 0 ,0 0 0 .0 0 . Thi s wa s a B a y s hop N o. 1 3- 14 Se c tor ITA 104 /CHD/2021 A.Y. 2015-16 Page 10 of 25 2 7 -D. C o ns id e r i ng th e va l ue u/s 5 0 C a n d the s ha r e of the a ss e s see , min us I nde x C os t and the p urch a se c ost, d e d uc ti on cl a ime d u/s 5 4 F r e f e r r in g t o p a ge 1 0 of th e P a pe r B ook , it was sub mi tte d, was Rs .5 6 ,9 4 ,6 5 8 /-. Th e i nv e st me nt i n house p r ope r ty u /s 5 4 F , it w a s su bmi tt e d , w a s of Rs. 7 2 ,5 0 , 00 0 /-. I n vi ti ng a tte n ti on to c op y of the P ur c ha se De e d a p pe nde d a t p a ge s 1 2 to 2 3 of H ou se N o. 3 1 13 , Se cto r 28D . I t wa s su b mit te d th a t the se w e re fi le d b e f ore the A O a s w e l l a s the P CI T. 5 .4 . I n the sa i d ba c k gr oun d , in th e he a r i n gs w hi ch co nti n ue d be f ore th e AO , the f oll ow i ng r e pl y a d va n ce d on b e h a lf o f t he a sse s see a p pe n de d a t P a pe r B ook p a ge 24 , i t w a s su b mitt e d w ou l d sh ow tha t t he c la i m ju sti fi e d on f a ct s b e f ore the A O w a s a l low e d a fte r p r ope r l y con si d e r in g the e v ide nce s. The r e p ly be fo re AO wa s a l so fi l e d be for e the l d. P C I T a l so a n d is comp l e te ly sup por te d b y e vi de n ce s w he re in n o i nf i r mity h a s be e n p oi nte d out b y the l d. P CI T e xce p t a su sp i ci on. For r ea d y r e fe re n ce , i t i s e xtr a c te d he re un d e r :
To The Income Tax Officer Ward-5(1) Chandigarh Subject: Regarding assessment u/s 143(2) of the Income Tax Act, 1961 in the case of Sh. Mahesh Chugh, H.No-3420, Sector-27C, Chandigarh for A.Y 2015-16 PAN: ACZPC8060H. Sir This is in continuation to the assessment proceedings in the case cited above as subject matter . A detailed reply letter furnished as per the directions issued by your office. Further your office made observations related to deduction claimed under section 54 F of the Income Tax Act 1961.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 11 of 25 It is submitted that the assessee sold capital assets during the relevant financial year i.e. 2014-2015 . The total consideration amount further reinvested in a residential house and claimed deduction under section 54F of the Income Tax Act 1961 . The assessee is having only one residential house No. 3420, Sector-27-C Chandigarh , during the relevant financial year in question i.e. his place of residence declared in his income tax return for the A.Y 2015-16. There is no other residential house in his name. Therefore the assessee has correctly claimed deduction under section 54F of the Income Tax Act 1961 .
It is requested to acknowledge the above stated fact and in light of above do the needful in the interest of justice.
Regards (On behalf of Mahesh Chugh) Sd/-
(Arvind Mehta) Advocate Counsel 5 .5 . Th e r e pl y a t pa g e 2 8 -3 0 of the Pa p e r B oo k t o the S how C a u se N o tice i ss ue d by the ld. PCIT e x tr a cte d in the i mpu gn e d o rd e r a p p e nde d a t Pa pe r B oo k p a ge 2 4- 25 w a s r e fe r re d to. I t w a s hi s s ub mis si o n th a t th e r e p l y w a s mor e or l e s s a s su bmi tte d b e fo re the A O . I t h a s be e n made a va i l a b le on be ha l f of th e a sse ssee b y Sh r i A r vind Me hta .
D e ta i l s of the e xp e n se s of con stru cti on /re nov a ti on o f H ous e N o. 3 11 3 Se c tor 28 D a lon gw i th e v ide nce s is a va i la b l e at p a ge s 3 1 to 45 . Li n k in g th e se w ith th e I n de x of sp e c if ic p a r ty/n a tur e of w or k e tc . a t p a ge s 3 1 , i t w a s hi s sub mi ss io n th a t a ll d e ta i ls w e re a v a il a b le a n d mos t of th e p a yme nt s w e re ma d e b y che q ue s. C op y of th e b a n k a cc oun t i s a p p e n de d a t p a ge s 3 2 to 3 9, P a p e r B ook p a ge 4 0, i t w a s h ighl ig ht e d i s co py of the le d ge r a c cou nt of To ps e l l Age nc ie s f rom w he r e ce r ta in p u r cha se s f or the ma t e r i a l use d we re ma de a mou nti n g to Rs . 1 ,3 3 , 04 0 /-. R ef e r r in g to the s a id p a ge , i t ITA 104 /CHD/2021 A.Y. 2015-16 Page 12 of 25 w a s s ub mi tte d tha t i t c le a r ly me n ti ons the sa le s b il l , V A T a mou nts . Si mi la r l y P a pe r B ook p age 4 1 i s pa y me n ts ma d e f or p ur c ha se of ce r amic ti l e s, b i ll r ai se d by Vi sh a l Tr a di n g on 2 1 .0 9 .2 0 1 4 a nd 1 4 .0 1 .2 0 1 5 (Paper B ook p a ge 4 1 -4 2 ). P a yme n ts ma de for p lu mb in g a n d l a b our th e re on a mou nt in g to Rs. 1, 1 5, 0 0 0/- p a id is s up p or ted by d oc ume n t ava i la b l e a t p a ge 4 3 . P a yme nt i s ma d e to " Pa p u " wh os e Mo b il e N o. is 9 4 17 0 8 4 59 0 . Si mi la r l y a t Pa p e r B ook p a ge 4 4 , the p a yme n t ma d e f or th e p e rs on w ho ha s la i d d ow n th e ti l e s. Th e C on tr a ct or 's n a me i s "S ha mb h u P r a ja p a t i" w i th hi s Mo bi l e N o. 96 5 3 1 25 3 1 3 a s me nt ion e d th e re i n. P a y me nt ma d e of Rs .1 , 72 , 00 0 /- f o r ci vi l w or k to "R a hu l Ku ma r " w he re hi s U P Mob i le n umb e r s a s 89 6 8 2 62 9 8 7 a n d 6 23 9 5 6 12 0 7 a r e gi ven to th e l d . P CI T. The bi l ls for p ur c ha s e of ma t e r ia l f ro m J.S . B u il d in g S tor e , Ra j i v B r os ., Sa r mu kh I r on S tor e a n d Ma ni sh I r on Sto re a re ava i la bl e a s p a yme nts goi ng th r oug h th ese b a nk a c cou nts . Th e l d . P C I T, i t w a s su b mitt e d , d oe s n ot f a ul t a ny of the se e vi de n ce s , d oe s not c a re to e xa mi ne a n yon e of the se p e r s ons a n d s tr a ig ht a w a y a r b itr a r i ly on su sp i ci on p r oce e d s to se tt in g a si d e a va l i dl y p a ss ed a ss e s sme n t or de r w i th out ca r i n g t o p oi n t o ut a ny e r ro r, le t a l one s uc h a n er r or w hi ch i s p r e j ud i ci a l to the in te re sts of th e Re ve n ue .
ITA 104 /CHD/2021 A.Y. 2015-16 Page 13 of 25 5 .6 A r gui n g a lte r na ti ve l y it w as s ub mi tte d , a s p e r re cor d a ss e s see c la i me d the be ne f i t of o nl y Rs. 2. 1 1 C r or e a s a ga i ns t th e e nt it le d b e nef it of Rs .2 .1 7 C ro re a n d a l l of i t w a s a p p li e d f or th e new p ur c ha s e . He nce , in w h a te ve r ma n ne r the d e p a r tme n t w a n ts to a rg ue t he cla im on f a cts w a s a ll ow a b l e a n d ha s be e n a l low e d a fte r d ue en q ui r y. N o i nf i rmi ty in th e sa me is poi n te d ou t e xce p t for s usp i ci on s, t hos e a l so n ot b a se d on a n y fa cts.
6. I n the sa i d b a ck gr ou nd , r e li a n ce w a s p l a ce d on va r i ou s d e c is ion s in cl ud ing th e c a se of Ha ri I r on Tra d i ng Co. vs . CI T 2 6 3 I TR 43 7 ( P& H ) , I TO vs. D . G. H ou si ng P ro je cts Ltd . 34 3 I TR 23 9 ( De lh i ), D ir e c tor of I n come Ta x vs. Jyoti F oun d a ti on3 5 7 ITR 38 8 ( D e l hi ), P C I T vs. D e l hi A ir p or t M e r to Exp r e s s ( P. ) Ltd . 3 9 8 I TR 8 ( De lh i ) A bh i ma nyu Gu p ta vs. P r. C I T I TA N o. 7 7 1/ C h a n di /2 0 17 to s up p or t t he p r a ye r t ha t the or d e r ma y b e q u ash e d .
6.1. S p e c i fi c a t te n tion wa s i nv it e d to t h e d e c i s i o n o f t h e Hon'ble De lhi High Court in the case of Delhi Airport M e tro Express Pvt. Ltd. (supra) specifically for the proposition that in order to set aside the asse ssment order exercising the powers vested by Section 263 of the Act, it is incumbent upon the ld. PCIT to point out the errors in the order. Referring to the said decision specifically and the ITA 104 /CHD/2021 A.Y. 2015-16 Page 14 of 25 other decisions cited, it was submitted that this power cannot be exercised carelessly and whimsically. 6.2 Attention was also invited to the decision of the Hon'ble Delhi High Court in the case of D.G. Housing Proje cts L td. (supra) for the proposition that the ld. PCI T considering the evidence has to upset the same and When a ll the evidences a re av ai la ble befo re the l d. PCI T, h e cannot whimsically direct that further enquiries be made. It was argued that the law requires the ld. PCIT to address the evidences and not proceed on suspicions. It was questioned what stops the PCIT from carrying out an enquiry and point out what is wrong in the evidence avai lable. Th e or der , it w as s ubmi tted, i s c ontrary to law and facts.
6.3 Decision of the Hon'ble Delhi High Court relied upon at Sr.No. 3 in the case of Jyoti Foundation (supra) was cited. It was submitted that even in a case where the ld. PCIT makes out a case that it is possibly a case of inadequate enquiry which in the facts of the present case, it is not so, even then the ld. PCIT for exercising the powers u/s 263 is duty bound to point out what is the error which has occurred on account of inadequate enquiry, if so alleged.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 15 of 25 6.4 Th e decisi on of the Chandigarh Be nch in the case of Abhimanyu Gupta (cited supra)referred to at Sr.No. 5, it was submitted, is also relied upon again for a similar proposition.
6.5 It was his submission that in case the Revenue seeks to support the order on the reasoning that the AO has not discussed the specific facts in the order. For the said purposes, it was his submission that he would re ly upon decision of the jurisdictional High Court in the case of Hari Ir o n Trading Co. 263 ITR 437 and drew specific attention to page 444 of the same.
7. Accordingly, it was his submission that on facts and law, the order passed by the PCIT may be set aside.
8. Th e ld. CI T-DR suppor ti ng the or der sub mitted that the order passed by the ld. PCIT after considering the facts and circumstances is a valid order in the eyes of law. Details of expenses sought to be relied upon by the asse ssee before the PCI T, i t was sub mitte d, need to be taken into consideration and verified. The AO , it was submitted, is empowered and has adequate support to carry out enquiries and merely be cause the order is set aside, no grievance can be said to be caused to the assessee as whatever the assessee wants to say, he is still ITA 104 /CHD/2021 A.Y. 2015-16 Page 16 of 25 at liberty to argue and place its case before the AO. Th e l d. CI T-DR fu rther submi tted that the case law rel ie d upon is not relevant as facts have not been considered and discussed in the assessment orde r. It is seen on record that some calculations h ave been made avai lab le by the Revenue as per letter dated 16.09.2021 whe rein the following calculation is given :
2. Thus to work out the deduction u/s 54F(l)(b), three ingredients required to be considered are :
i) Net consideration in respect of the original asset;
ii) Capital Gains; and
iii) Cost of the new asset In the present case these are as under:
i) 2,96,25,000/-
ii) 2,00,87,010/-
iii) 2,17,35,000/-
Considering the above figures and by applying the formulae as provided in clause (b) of sub section (1) of Section 54F of the Act, the permissible deduction comes to Rs. 1,47,37,254/- as against claimed and allowed at the time of assessment at Rs. 1,85,85,741/-."
8 .1. Th e ld. CI T-D R sought time to verify the cal culation s and consult from the field as to what is the exact figure in dispute; he submitted that arguments of the Revenue are concluded; however, time for factual verification was sought.
9. Accordingly, time was granted.
10. On the next date, following submissions were filed on behalf of the Revenue :
ITA 104 /CHD/2021 A.Y. 2015-16 Page 17 of 25 Feb. 2. 2022 The Hon'ble Members Chandigarh "B" Bench Chandigarh Sir/madam, Reg, M/s Mahesh Chugh ITA No. 104/Chd/2021 AY 2015-16 The above case was part heard today {2.2.2022}, and now fixed on 9.2.22, the undersigned would like to furnish capital gains calculations for ready reference. The same is as under:
Sr. no. Property ID Sales Cost of Capital
consideration Acquisition gains/loss
(Rs) Indexation (Rs.)
(Rs.)
1 Plot F-264 45,00 000 4864223 (-)364223
2 Plot 182/49 155,00,000 2608917 12891083
3 Shop no. 13-14 96 25 000 2064850 7560150
Not included for the time being, the matter will be taken separately. Net consideration from Property 2&3 above : 2,51,25,000 (1,55,00,000)+ 96,25.000) Capital gains : 2,04,51,233 (1,28,91,083 + 75,60,150) {A} Investment in residential property (3113) : 2,27,50,000 (including 10,15,000 renovation Deduction eligibility : Investment in residential property x capital gains/net consideration Here : 2,27,50.000x2.04,51,233/2,51,75,000 = 1,85,18,031 Capital gains of property 2&3 after deduction : 19,33,202 (2,04,51,233-1,85,18,031) Net capital gains after deducting loss of Property no, 1 : 15,68,979 (19,33,202-3,64,223) Claim of Assessee in his computation : 15.01,269 Difference : 67,710 (assessee may correct the figure) (B) Investment in resl. Property (3113) taken at Rs. 2,17,35,000 (without renovation claim of 10,15,000) Deduction eligibility : 2,17,35,000x2,04,51,233/2,51,25,000=1,76,91,842 Difference between A and B=8,26,189 (1,85,18,031-1,76,91,842) The above calculation is without prejudice to other issues raised by the Department in the assessment and appellate proceedings.
Yours faithfully Sd/-
CIT-DR-1, ITAT, Chandigarh (emphasis supplied) 10.1. Th e case, thereafter came to be fixed on various dates, however, at times, due to connectivity issues; or b oth the p ar ties re maining b usy; and pa ucity of ti me etc. , the hearing ultimately concluded on 09.03.2022.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 18 of 25
11. The l d. CI T-DR rel ie d on his argume nts and on f acts relied on the above calculations.
12. Th e ld. AR add res sing the De par tme nt's cal culations su bmitted that he i s very gratef ul to ld. CI T-DR wh o has considering the calculations finalized that there was a difference of Rs. 8,26,189/- and not Rs.10,15,000/- as considered in the impugned order. It was his submission that even if the higher figure of Rs. 10,15,000/- as noticed by the ld.PCIT is taken the fact remains that there is no error in the order which can be considered to be erroneous and prejudicial to the interests of the Revenue as the calculations provided above are not considering the renovation claim of Rs.10,15,000/- which the Revenue seeks to look into in the set aside proceedings. Th e argument that it was seen by the AO, even if it remains unproved on account of unavailability of the Affidavit of late Mr. Mehta. Th e f act re mains that these cal cul ations were always available to the Revenue as these have indisputably been filed before the ld. PCIT and are on record. It is argued that these have not been faulted. Th e Revenue, it was submitted, may not be allowed to exercise the Revisionary powers casually and whimsically. It was argued that the law requires that error on examining the evidences filed has to be pointed out by the ld. PCI T and ITA 104 /CHD/2021 A.Y. 2015-16 Page 19 of 25 this exercise cannot be avoided Such an action is lacking in the present proceedings as no error, let alone an error which is prejudicial to the interests of the Revenue has been pointed out by the ld. PCIT.
13. We have heard the rival submissions and perused the material available on record. It is seen that in the facts of the present case the assessee filed its return on 08.09.2015 declaring income of Rs. 15,09,350/-. In the return filed, claim of deduction u/s 54F was made. Th e AO after issuance of notice and raising certain queries considering the reply filed etc. passed the assessment order under question. It is pertinent to note that the assessee was represented before the AO by Shri Arvind Mehta. Th e s a i d o r d e r p a s s e d w a s s o u g h t t o b e s e t a s i d e by the ld. PCIT on account of the facts which were set out in the Show Cause Notice dated 29.02.2020 issued to the assessee. Th e c o n t e n t s o f t h e s a m e h a v e b e e n e x t r a c t e d in the impugned order and for the sake of comple teness are reproduced he reunder :
2. As per information/documents available on records, it is seen that three commercial properties were sold for a total consideration of Rs. 2,96,25,000/-
during the year. Net capital gain was worked out at Rs. 10,76,789/- after adjusting the short term capital loss, claiming cost of indexation and deduction u/s 54F amounting to Rs. 1,85,85,741/-. Further, a free hold residential house No. 3113, Sector 28-D, Chandigarh was purchased for a total consideration of Rs. 2,89,80,000/- ( Rs. 2,76,00,000/- + stamp duty of Rs. 13,80,000/-) by you and your wife in sharing (75:25) for claiming deduction u/s 54F of the IT Act.
ITA 104 /CHD/2021 A.Y. 2015-16 Page 20 of 25 As per share ratio, your share in purchasing of house comes to Rs. 2,17,35,000/-
3. As per deduction u/s 54F(1)(b) of the IT Act, allowable to the assessee, "If the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net asset bears to the net consideration, shall not be charged under section 45" The complete details of the commercial properties sold during the F.Y. 2014-15 and eligible/allowable deduction u/s 54F is as under:-
Particulars Property No. 1 Property No. Property No. 3, Bay Total Plot No. F- 2, Plot No. Shop No. 13-14, 264 Phase-8, 182/49, Indl. Sector 27-D, Mohali Area, Phase-1, Chd (17.5%) Chd Value u/s 50C Rs. 4500000.00 Rs. 15500000.00 Rs. 9625000.00 Rs. 29625000.00 Less: Transfer Exp. Rs.00 Rs.00 Rs.00 Rs.00 Net Consideration Rs. 4500000.00 Rs. 15500000.00 Rs. 9625000.00 Rs. 29625000.00 Less: Indexed Cost Rs. 4864223.00 Rs. 2608917.00 Rs. 2064850.00 Rs. 9537990.00 Long Term Capital Rs. 12891083.00 Rs. 7560150.00 Rs. 20087010.00 (-) 364223.00 Gain/Loss Amount invested in Rs. 21735000.00 purchase of house property @ 75% share of the assessee Therefore allowable deduction u/s 54F of the IT Act is calculated as under:-
Long Term Capital Gain (2,00,87.010) X amount invested to purchase new asset (2.17.35.000) Net Consideration(2,96,25,000) = 1,47,37,254/-
1 3 .1 Th e r e p ly of t he a sse sse e to t he ld . PC I T ha s a ls o b ee n e x tr a cte d i n the i mp ugn e d or d e r . Fo r re a d y re fe ren ce , s a me i s re p ro du ce d her e u nde r :
2. In response to this notice, Sh. Arvind Mehta, Advocate, who was duly authorized by the assessee appeared and submitted his power of attorney and reply alongwith enclosures on 05.03.2020. The submissions of the assessee are being reproduced as under:-
This is in reference to the subject matter cited as above wherein assessment framed and other passed u/s 143(3) of the Income Tax Act, 1961. It has been observed by your office that the deduction claimed u/s 54F of the Income tax Act, 1961 are not in accordance to the provision under Income Tax Act. Respectful submissions are made as under;
I.That it is an admitted fact that the assessee has sold three Nos of immovable properties (Capital assets other than residential) for total consideration amount ITA 104 /CHD/2021 A.Y. 2015-16 Page 21 of 25 of Rs. 2,96,25,000/- as declared in the Income Tax return for the assessment year 2015-16. As a matter of fact sales consideration amount of Rs. 45,00,000/- received against sale of Plot No. F-264, Phase-8, Mohali (Pb.) bears net capital loss of Rs. (-) 3,64,223/-. Hence the total consideration amount i.e. 45,000/- is not declared for the purposes of claim of deduction under section 54F of the Income tax Act, 1961. Hence it needs to be executed from total consideration of Rs. 2,96,25,000/-.
2. That apart from above stated amount assessee sold capital assets (not being residential house) i.e. Plot No. 182/49, Industrial Area, Phase-1, Chandigarh for total consideration of Rs. 1,55,00,000/- (vide sale deed dated 123.06.2014) & Bay Shop No. 13-14, Sector 27-D, Chandigarh for total consideration of Rs. 96,25,000/- (vide sale deed dated 12.08.2014). The total amount received and stands eligible to claim deduction under section 54F of the I T . Act, 1961 from above assets is Rs. 2,51,25,000/-. The assessee purchased a residential House No. 3113, Sector 28-D, Chandigarh for total consideration of Rs. 2,89,80,000/- inclusive of (Purchase amount & Stamp Duty) having share of 75% i.e. Rs. 2,17,35,000/- only. He further invested Rs. 10,15,000/- on construction/renovation of the said house and claimed total deduction under section 54 of the Act amounting to Rs. 2,11,94,658/- (Rs. 1,55,00,000/- + 56,94,658/-).
3. That the total eligible to claim deduction under section 54(1 )(b) of the Income Tax Act, 1961 comes to Rs. 2,17,35,000/- and assessee has claimed deduction of Rs. 2,11,94,658/- only, which is less than the amount of deduction assessee is entitled for. It is pertinent to mention here that the assessee has declared differential capital gains amount to tax and deposited long term capital gains tax of Rs. 2,15,358/-. Therefore the assessment framed under section 143(3) of the Act is not erroneous. The assessee has claimed correct deduction u/s 5 F(1)
(b) of the Income Tax Act, 1961 and deposited the long term capital gains tax as per provision of the Act.
It is therefore requested to knowledge the facts stated above and shall not invoke provision of section 263 of the Income Tax Act, 1961 in the interest of Justice and Oblige.
(emphasis supplied) 1 3 .2 C on si d e r i ng this , th e ld . P C I T p a ss e d th e f ol low in g or d e r on fa c ts:
3. The assessee purchased a residential house No. 3113, Sector 28-D, Chandigarh for total consideration of Rs. 2,89,80,000/- in which the share of the assessee (75%) was Rs. 2,17,35,000/-. The assessee had claimed investment of Rs. 1,55,00,000/- in residential property for computing ITA 104 /CHD/2021 A.Y. 2015-16 Page 22 of 25 deduction u/s 54F on the sale of Plot No. 182/49, Indl. Area, Phase-I, Chandigarh.
Further investment of Rs. 72,50,000/- was claimed in house property for claiming deduction u/s 54F from the sale of Bay Shop No. 13-14, Sector 27- D. Chandigarh. Thus the total investment in residential properties have been claimed at Rs. 2,27,50,000/- whereas the actual investment was Rs. 2,17,35,000/-. During the course of hearing the counsel of the assessee was asked to explain the excess investment claimed in new property amounting to Rs. 10.15 lacs and to show cause as to why the excess claim should not be disallowed. On the request of the counsel, the case was adjourned to 11.03.2020.
3.1 Sh. Arvind Mehta, Counsel of the assessee attended the proceedings on 11.03.2020 and filed details of expenses for construction/renovation of House No. 3113, Sector 28-D, Chandigarh. From the records, it is seen that these details were neither called for during the assessment proceedings by the assessing officer nor the details were provided by the assessee of his own. 1 3 .3 Re ly in g up on th e de ci si on of t he H on 'b le D e lhi Hi gh C ou r t i n the ca s e of N a ge s h Kni tw e a r Pv t. Ltd . ( 2 0 1 2 ) 34 5 I TR 13 5 a n d de ci si on of t he Ap e x C our t i n the ca se of Ami ta b h B a c hc h a n , th e or de r was se t a s i de h ol di n g as un d e r :
5. It is, therefore, held that the said assessment is erroneous in so far as prejudicial to the interest of revenue for the reasons as discussed above in view of the provisions of section 263, inter-alia including Explanation 2(a) inserted w.e.f. 01.06.2015. Accordingly, the assessment order u/s 143(3) dated 08.12.2017 for the assessment year 2015-16 is cancelled and set-aside with a direction to the Assessing Officer to pass an order afresh in accordance with law keeping in view the above observations and after allowing opportunity of being heard to the assessee.
1 3 .4 I n the l igh t of t h e se f a ct s, su b m is si ons a n d p os it i on o f r e c or d, we f in d th a t the or d e r pa s se d ca n no t b e up h e l d.
H a vi ng g iv e n o ur se r i ous con si d e r a ti on to th e le n gth y a r gu me n ts on the c a l cul a ti on s a va i l a b le o n re cor d a n d a s a r gu e d b y the re spe c ti ve pa r t ie s b e f ore us in clud i ng th e ITA 104 /CHD/2021 A.Y. 2015-16 Page 23 of 25 d e ta i le d su b mis s i ons r e c or de d in th e re spe c ti ve or de r s, we f in d th a t t he l d. PC I T a t b e st ca n b e sa i d t o h a ve en te rt a ine d a sus p ic ion , h ow e ve r , he h a s fa i led to p oi nt ou t a ny in fi r mi ty i n the or de r . O n the con tr a r y, cons id e r i ng the re pl i e s of the a ss e s see on re cord in cl ud i ng th e su b mis si on s a s a d va n ce d b e f ore the l d . P CI T hi mse l f , we f i nd tha t th e cl a im a l low e d b y th e A O is fu l ly su pp or te d on fa cts a n d e v ide n ce s. Th e or d e r un d e r ch a lle n ge f a il s to p oin t out a n y e r ro r l e t a lone s uch a n e r r or wh i ch ca n be s a id to be e rr on e ou s a nd p re ju d ic ia l to th e i nte re s ts o f the Re ve n ue . Th e f a ct tha t the cons tr uct ion co st de ta i ls we re a ct ua l ly p r ovi ded on q ue r y to the A O or n ot a s the y d o not fin d a ny me n ti on in th e a sse ssme nt or d e r , we f in d i n t he p e cu li a r f a cts i s n e i th e r he re nor t he re . The fa c t r e ma i ns th a t th e se we re p r ov id e d t o th e l d. P C I T. W e d o n ot n ee d to ci te a ny d e c is io ns to a d d r e ss the we ll a cce p te d p osi ti on th a t the a s se s see c a nn ot be f a ul te d on ho w th e a ss e s sme n t or der s a r e w r i tte n . The w r iti n g of a ss e ss me nt or d e r s a re e xcl us iv e l y i n the h an ds a n d th e d oma i n of th e Re ve n ue and me re l y be ca u se fa cts on wh i ch t he AO is sa t is fi e d a re n ot fo un d me n ti on ed in th e or de r , th e a b se nce of d i scu ss ion t he re on sh a l l not b y its e l f be a n in d ic a tor of th e fa c t th a t the AO ha s f a i le d to e xa mi ne the i ssue . S uch a n i nf e re nce c an not b e d ra w n . W e ha ve se e n th e q ue r ie s r a i se d in t he co ur se of t he a s se s sme n t p ro cee di n gs. W e ha v e ITA 104 /CHD/2021 A.Y. 2015-16 Page 24 of 25 se e n the re s p ons e s gi ve n the re t o. No d oub t tha t th e a ss e s see is fa ce d wit h a h and i ca p th a t the cou nsel r e p re se n tin g be for e t he AO a nd b e fore t he ld . P C I T h a s p a ss e d a w a y i n t he C OVI D ti me s , h ow e ve r , t he fa c t whi ch r e ma i ns to b e d emon str a te d by th e Re ve n ue i s th e e r ro r a nd th a t too suc h a n e r r or w h ic h i s p re j u di ci a l to the inte re sts of th e Re ve n ue . Th e se re q ui re me nts ca n not b e sa id t o ha v e b ee n me t b y the a b se nce of d i sc uss i on on fa c ts o n w h i ch th e AO was sa ti sf i e d a fte r h a vi ng r a i se d the q ue r ie s a nd co ns id e re d t he r e p lie s . H ow the a s se ssme nt o rde r s ar e t o be w r it te n c a nn ot b e d ic ta te d to b y the a s se sse e . The re me d y a t b e st l i e s i n p r ovi d in g b e tte r tr a i n in g, i f s o d e e me d fi t to th e Re ve n ue of fi ce rs and he n ce , li e s i n- hou se w i th th e Re ve n ue itse l f. The s us p ic ion th a t it w a s p os si b ly n ot see n b y th e AO ca n not b e the b a ck b on e of e xe r ci si n g the powe r s u/s 2 6 3 of th e Act . The f a ct re ma in s tha t th e se calc ul a ti on s w e re p r ovi de d t o t he l d. PC I T. I t is s ee n t ha t he h as f a il e d to f in d a n y i n fi r mit y i n the cl a im. The l d . P CI T, i ns te a d ha s se t a si d e the o rde r u/s 1 4 3 (3 ) /1 48 in or d e r to gr a nt on e mor e i nn in g to th e Re ve nue to f in d som e sh or tc omin g i n th e c la i m on th e s usp i ci on th a t p oss ib l y t h e AO h a s mi ss e d so me th in g i n th e f ir s t ro un d. Su ch a n a ct ion ca n no t be sup p or te d. P ow e r s u/s 2 6 3 of th e I nc ome Ta x Ac t a r e no t on t he St a tute f or su ch w hi msi ca l a n d a r b itr a r y a cti on s. Th e p ow e r s a re ITA 104 /CHD/2021 A.Y. 2015-16 Page 25 of 25 e x pe cte d to be ne ce ss a ri l y e xe rc ise d b y po in ti ng ou t cl e a rly th e e r r or i n t he or d e r p a sse d w h ic h is so ugh t t o b e se t a si de e xe r ci si ng the Re vi si on a r y p owe rs a n d tha t too, s uc h a n e r r or wh i ch i s p re j ud ic ia l to the in te re s ts of the Re ve n ue . 1 3 .5 W e ha ve gi ve n o ur d u e con si de r a ti on to the e nt ir e t y of th e sub mi ss io ns of the p a r tie s a n d e xa min e d the cl a i ms of th e p a r tie s f r om th e va r i ou s p e rsp e c ti ve s a nd pos si bi l it ie s w hi c h a r i se on f a ct s a n d fi nd t h a t the or d e r p a sse d u/s 2 6 3 d e se r ve s to fa il . Ac cor d in gl y, th e or de r i s d i re ct e d to be q u a she d a ll ow i ng th e gr ou nd s of t he a sse ssee . O r d e red a cc or d in gl y.
14. I n the re su lt , the a pp e a l of the a ss e ssee i s a ll owe d.
O r d e r p r on o u n ce d o n 2 1 s t A p r i l , 20 2 2 .
Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा सद य/ Accountant Member याियक सद य/ Judicial Member "Poonam"
आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant 2. यथ / The Respondent 3.आयकर आयु / CIT4.आयकर आयु (अपील)/ The CIT(A)5.िवभागीय ितिनिध, आयकर अपीलीय आिधकरण, च डीगढ़/ DR, ITAT, CHANDIGARH6.गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar