I Where assessee sold a property and invested sale consideration from same for purchase of another property and claimed exemption under section 54, however, Assessing Officer allowed exemption under section 54F instead of section 54, and, assessee filed an appeal against said order, since larger issue was pending before Commissioner (Appeals), Commissioner could not invoke jurisdiction under section 263 against said order of Assessing Officer on account of statutory bar

 

[2019] 101 taxmann.com 119 (Madras), Smt. Renuka Philip v. Income-tax Officer, Business Ward-XV(2)Chennai*

 

T. S. SIVAGNANAM AND N. SATHISH KUMAR, JJ. TAX CASE APPEAL NO. 286 OF 2012† NOVEMBER  14, 2018 

 

The Explanation to section 263(1)(c) makes it clear that when the appeal is pending before the Commissioner, the exercise of jurisdiction under section 263 is barred.

 

 The Commissioner in the order states that the appeal pertains to the claim made by the assessee under section 54 and it has got nothing to do with the order passed by the Assessing Officer under section 54F. 

 

The said finding rendered by the Commissioner is wholly unsustainable, since the assessee went on appeal against the re-assessment order stating that his claim for deduction under section 54 should be accepted. 

 

[Para 22]