Case Law Details
Dhanalakshmi Mills Ltd. Vs DCIT (ITAT Chennai)
Admittedly, the Assessing Officer has caused necessary inquiries with regard to computation of long term capital gain derived transfer of property and has computed capital gain by taking into account cost of acquisition claimed by the assessee without disturbing consideration received from transfer of property, even though, there is difference in guideline value of property. From order of the Assessing Officer, what we could notice is that although, provisions of section 50C could have been applied in the given facts and circumstances of the case, but the Assessing Officer has failed to apply provisions of section 50C to determine correct consideration received for transfer of property. The PCIT, after verifying necessary evidences in light of various facts bought on record by the Assessing Officer has opined that the assessment order passed by the Assessing Officer is erroneous, insofar as it is prejudicial to the interests of revenue on the issue of computation of long term capital gain from transfer of property, because the Assessing Officer has failed to apply provisions of section 50C of the Act, while completing assessment. In our considered view, the Assessing Officer has failed to apply his mind in light of facts of the case to relevant provisions of section 50C of the Act, while completing assessment. Hence, the PCIT has rightly exercised his jurisdiction u/s.263 of the Act and set aside the assessment order, because the assessment order passed by the Assessing Officer is erroneous, insofar as it is prejudicial to the interests of revenue. Therefore, we are of the considered view that there is no error in the reasons given by the ld. PCIT to set aside the assessment order and thus, we are inclined to uphold findings of the learned PCIT and dismiss appeal filed by the assessee.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against order passed by the learned Principal Commissioner of Income Tax, Coimbatore-1,dated 25.03.2021, u/s.263 of the Income Tax Act, 1961, and pertains to assessment year 201516.
2. At the outset, learned AR for the assessee submitted that the appeal filed by the assessee is time barred by 9 days.The AR further submitted that the assessee could not file appeal within the time allowed under the Act, mainly due to lockdown imposed by the Govt. on account of spread of Covid-19 infections and in view of Hon’ble Supreme Court suo motu Writ Petition No.3 of 2020, if the period of delay is covered within the period specified in the order of the Apex Court , then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic.
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