PCIT Vs Sangeeta Jain (Delhi High Court)
Delhi High Court held that revisionary proceedings under section 263 of the Income Tax Act justified in absence of any effective inquiry and total non-application of mind by AO. Accordingly, order passed by AO erroneous and prejudicial to interest of revenue.
Facts- PCIT on examination of the assessment record of the assessee pertaining to the AY 2013-14, issued a show cause notice u/s. 263 of the Act. PCIT alleged that proper verification of long term capital gain on sale of agricultural land was not carried out.
Post verification, PCIT passed order under Section 263 of the Act holding that the assessee was liable for short term capital gain of ₹10,72,76,180/- and the AO was directed to modify the order passed by it under Section 143(3) of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that this is not a case where the enquiries conducted by the AO were inadequate; this is a case of lack of enquiry as the AO had not conducted any enquiry to verify whether the land sold by the assessee was beyond the prescribed distance from the boundary of Sohna Municipal Corporation. It is apparent that no enquiry to the said effect was conducted by the AO and there is no material before the AO, other than the self serving statement of the assessee, to corroborate the same.
