Case Law Details
Prerak Goel Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that revisional order u/s 263 cannot be invoked if Assessing Officer has conducted enquiries and applied his mind and has taken a possible view of the matter.
Facts- PCIT examined the assessment record and noticed that the assessee had claimed exemption u/s.54F of the Act against LTCG arising on sale of shares and the said claim had been accepted by AO.
Notably, during the year under consideration, the assessee has sold 350 shares of M/s. Concord Enviro Systems Pvt. Ltd. and earned LTCG of Rs.3.01 Crores. The assessee held a flat along with his mother as co-owner. The assessee purchased the share of his mother by paying Rs.3.00 Crores and he claimed the above said purchase as deduction u/s. 54F of the Act.
PCIT noticed that the agreement for purchase has been entered on a notorized stamp paper only and conveyance deed has not been registered till date. PCIT took the view that the registration of deed is compulsory for availing deduction u/s 54F of the Act. PCIT of the Act also took the view that Section 53A of the Transfer of Property would not apply in the absence registration of Conveyance Deed for the purpose of Section 2(47)(v) of the Act. Accordingly, he took a view that the assessee would not be entitled for deduction u/s.54F of the Act.
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