Additions already made by AO on Capital Gain: ITAT quashes Order u/s 263 by PCIT [Read Order]
![Additions already made by AO on Capital Gain: ITAT quashes Order u/s 263 by PCIT [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/10/AO-Capital-Gain-ITAT-PCIT-taxscan.jpg "Additions already made by AO on Capital Gain: ITAT quashes Order u/s 263 by PCIT [Read Order]")
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench comprising Judicial Member Suchitra Kamble and Accountant Member Waseem Ahmed has recently held that no order can be passed by the Principal Commissioner of Income Tax (PCIT) when the grounds have already been examined by the Assessing Officer (AO). The matter pertained to addition already made to the extent of Rs.18,63,319/- on...
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench comprising Judicial Member Suchitra Kamble and Accountant Member Waseem Ahmed has recently held that no order can be passed by the Principal Commissioner of Income Tax (PCIT) when the grounds have already been examined by the Assessing Officer (AO). The matter pertained to addition already made to the extent of Rs.18,63,319/- on account of short working of Long Term Capital Gains (LTCG) by the AO.
The Assessing Officer had made an addition on account of short working of capital gains amounting to Rs. 18,63,319/-. The PCIT held that the post valuation report determined the value of the plot at Rs.44,83,680/- considering the total plot area at 112092 sq. meters. As regards the second valuation report, the value of land was determined at Rs.1625/- per sq. meter specifying the total area of 112092.42 sq. meter and describing that the net saleable area is 54384.25 sq. meters only, as per the observations of the PCIT.
Thus, the PCIT held that the Assessing Officer has not correctly verified the different valuation adopted by the assessee in different areas for the same land and, therefore, set aside the assessment order and directed the Assessing Officer to pass fresh assessment order after properly ascertaining the correct facts on the said issues.
The revenue submitted that the notice under Section 142(1) of the Act issued by the Assessing officer during the assessment proceedings is only a query but not the actual enquiry and thus, the Assessing Officer has not taken into account the land valuation properly.
It was observed by the tribunal that “In fact, the Assessing Officer in reopening has categorically made finding and made addition to the extent of Rs.18,63,319/- on account of short working of LTCG” and consequently the order passed by PCIT was quashed, allowing the appeal of the assessee.
To Read the full text of the Order CLICK HERE
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