The assessee sold immovable property during the relevant year.  However, the assessee did not reflect the sale of immovable property neither paid tax on Capital Gains on the ground that the cheques towards balance of sale considerations were dishonoured. 

The Pr. CIT observed that the two cheques issued by the purchaser was post dated cheques.  The AO at the time of framing the assessment order, accepted the auditor’s report given before the date of post dated cheques and accordingly, passed the assessment order without any enquiries as to dishonoured post dated cheques.  The Pr. CIT assumed the jurisdiction in terms of clause (a) of Explanation 2 to Section 263 with the observation that the AO failed to examine the details of the dishonoured cheques and thus, the assessment order being an erroneous in so far as the prejudicial to the interest of the Revenue. 

On appeal by the petitioner, the Tribunal upheld the order passed by the Pr. CIT. High Court affirmed the order of the Tribunal. SLP is dismissed. (AY. 2015-16)