Case Law Details
Facts of the Case
A search and seizure operation u/s 132 of the I.T. Act 1961 was carried out During the course of search, certain documents were found and seized relating to the assessee. Accordingly notice u/s 153C was issued. Assessee executed the development agreement for developing a piece of land for which there was no endorsement of registration authorities on the reverse of the Development Agreement cum GPA which indicate that the agreement was not registered in the absence of which the compliance of section 50C of IT Act is not verifiable. The same was transferred in the year 2005-06 and the same was taxable in the same year. The assessee was allowed exemption u/s 54F for an amount of Rs. 13,91,000/- in respect of Flat No. 205 in the FY 2004-05. This Flat No. 205 was subsequently gifted by the assessee to his wife on 20-02-2007 which indicate that the assessee did not hold the property for the period prescribed u/s 54F. Consequently, the amount of Rs. 13,91,000/- claimed needed to be disallowed. This fact has not been verified during the assessment proceedings. Since the above mentioned were being done without any analysis, the SCN was issued by the revenue for revising the A.Y. u/s 263.
Question of Law
Whether the ld. CIT(A) was justified in passing the order u/s 263?
Contentions of the Assessee:
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