Siddharth Bhasker Shah Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that revisionary proceeding under section 263 of the Income Tax Act is liable to be quashed since AO took one of the possible views while allowing claim of deduction under section 54F. Accordingly, order is quashed and appeal is allowed.
Facts- Post conducting inquiry, AO completed assessment by allowing claim of exemption u/s. 54 and accepting income returned by the assessee. Subsequently, from the perusal of the records, PCIT observed that case of the assessee was selected for scrutiny for verification of deduction claimed u/s. 54F for which adequate enquiries have not been made by the AO. PCIT set aside the assessment order with the direction to pass a fresh assessment considering the issues raised in the revisionary order, by giving reasonable opportunity of being heard to the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that AO took one of the plausible view, based on the factual position and the judicial precedents placed before him. PCIT has taken a contrary view of treating the triplex residential house as multiple flats owned by the assessee, which is not in conformity with the provisions of section 54F, so as to render the assessment made by AO as erroneous and prejudicial to the interest of Revenue.
