Case Law Details
Deepika Subramanian Vs PCIT (ITAT Chennai)
Introduction: In a significant decision emanating from ITAT Chennai, the tribunal delved into the powers of the Pr. Commissioner of Income Tax, Chennai-3 (Pr. CIT) when invoking section 263. The case in point, “Deepika Subramanian Vs PCIT”, revolves around the revisionary jurisdiction and its implications on assessment orders.
Analysis: The crux of the case revolved around the purchase of property by the assessee, Deepika Subramanian, for which the consideration and the stamp duty value exhibited a discrepancy. Pr. CIT believed the AO should have invoked section 56(2)(vii) of the Act, leading to a direction for a fresh assessment. However, this approach was challenged on the grounds that the AO had taken one of the possible views and chosen not to invoke the said provisions. Notably, the Hon’ble Madras High Court’s decision in “CIT vs. Smt. Padmavathi” was cited, emphasizing that a mere difference between the guideline value and sale consideration cannot be the sole criterion for deeming an assessment as erroneous.
Conclusion: The ITAT Chennai, after a thorough examination, sided with the assessee, quashing the impugned order by Pr. CIT. The verdict emphasizes the importance of judicial discretion and upholds the sanctity of the AO’s decisions, especially when they align with one of the plausible views in the assessment scenario.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
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