Ajay Agarwal Vs Circle (ITAT Jaipur)
ITAT Jaipur held that since there is neither error of law nor of facts, the twin condition as required to revise the assessment order is not met out and hence invocation of revisionary power under section 263 of the Income Tax Act is not sustainable in law.
Facts- Post completion of assessment u/s. 143(3), PCIT called for the assessment records in exercise of the powers vested upon and upon verification of the assessment record the ld. PCIT noted that the assessment in the case of assessee for the A.Y 2018-19 passed by the AO is erroneous in so far as it was prejudicial to the interest of revenue as per provisions of section 263 of the Income Tax Act, 1961 as the impugned flat bearing no. 1802, Mantri DSK Pinnacle was a joint property that was observed from the documents available on record, however, entire long term capital loss was claimed by the assessee himself, whereas he was having 50% share in ownership as per agreement to purchase of flat executed on 28.12.2010. Accordingly, the proceedings u/s 263 of the Income Tax Act, 1961 were initiated.
After considering the reply of the assessee as well as the facts and circumstances of the case as stated, the assessment order passed by the Assessing officer under the provisions of section 143(3) of the Act dated 21.06.2021was found erroneous in so far as it was prejudicial to the interest of revenue. Being aggrieved, the present appeal is filed.
