Allowing the petition the Court held that there was no delay in filing the application under section\u00a0264\u00a0of the\u00a0Income-tax Act, 1961, because the application under section\u00a0264\u00a0of the Act was against the order passed under section\u00a0154\u00a0of the Act and not that passed under section\u00a0143(3)\u00a0of the Act. The order under section\u00a0154\u00a0of the Act was passed within one year from the date of application filed under section\u00a0264\u00a0of the Act. In the assessment order passed in the case of another co-owner of the flat, the Assessing Officer had accepted certain amount as the cost of indexed renovation. Therefore, the amount had to be accepted as correct and suitable allowance should be made while arriving at the long-term capital gains. The order was quashed and set aside. The matter was remanded to the first respondent for de novo consideration and to pass a reasoned order after providing the assessee with an opportunity of hearing. Court also observed that, Section\u00a0264\u00a0confers wide jurisdiction on the Commissioner. The proceedings under section\u00a0264\u00a0of the Act are intended to meet a situation faced by an aggrieved assessee, who is unable to approach the appellate authorities for relief and has no other alternate remedy available under the Act. The Commissioner is bound to apply his mind to the question whether the assessee was taxable on that income and his powers are not limited to correcting the error committed by the subordinate authorities but could even be exercised where errors are committed by the assessee. It would even cover situation where the assessee because of an error has not put forth legitimate claim at the time of filing the return and the error is subsequently discovered and is raised for the first time in an application under section\u00a0264\u00a0of the Act.\u00a0 (AY.2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 264: Commissioner-Revision of other orders-Rectification of mistake-Long term capital gains-Time-Limit-Sale of flat inherited-Indexed cost of improvement-Omission of claim of deduction of Indexed renovation expenses in return of income-Rectification application is rejected on the ground that new claim was not raised earlier-Claim was accepted in other co-owners-Matter remanded for de novo consideration. [S. 45, 48, 50(C)(2), 143(3), 154, Art. 226]c<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-47314","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cj8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=47314"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47314\/revisions"}],"predecessor-version":[{"id":47315,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47314\/revisions\/47315"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}