Section 48 & 263 of the Income-tax Act, 1961 – Revision – Revision proceedings invalid as assessing officer has accepted the returns filed by the assessee company and the assessee company has also given reason for adopting the revised value which was accepted the AO.[2020] 54 ITCD 81 (MAD)
Facts: "Whether on the facts and in the circumstances of the case, the Tribunal was right in setting aside the order passed by the Commissioner of Income-tax under section 263 in which CIT held that for the purpose of computing the indexed cost of acquisition of the land, it should be with reference to the year of acquiring the land i.e., 2004-05 and not 2010-11, however, the learned Income-Tax Appellate Tribunal (ITAT) misapplied the decision of the Honourable Supreme Court and also the decisions of High Courts and set aside the order of the learned Principal Commissioner of Income-tax passed under section 263 of the Act and therefore, the appellant/Revenue has filed this appeal.
Held, that the assessing officer has accepted the returns filed by the assessee company and the assessee company has also given reason for adopting the revised value and also pointed out that except the said property, the company has no other property for income and also the entire shares has been transferred and also the value of the land were revised and revalued and capital gains tax also paid. Therefore, under these circumstances, this court do not find any valid reason to interfere with the order passed by Income-tax Appellate Tribunal. The substantial question of law raised by the revenue is answered accordingly. Thus, we find no good reason to admit the Tax Case (Appeal) filed by the Revenue.