Question ID :
Validity of Notice issued u/s 263 of IT Act.
Dear Friends, please clarify on the following:-
An assessee filed his return of income claiming exemption U/s 54F of IT Act on sale of his vacant land by investing in a residential property. The assessment was processed U/s 143(1) of the IT Act.
Subsequently he was issued notice U/s 147 based on AIR information.
The assessment was completed U/s 143(3) accepting the Return filed and also the exemption U/s 54F.
Now, based on Audit Objection PCIT has issued notice U/s 263, setting aside the Assessment and directed the AO for re-assessment to deny exemption U/s 54F stating that the assessee has owned more than on residential house
The AO has started the reassessment proceedings
Please advise whether the reassessment proceeding is valid in view of reopening notice issued U/s 147 and assessment completed accepting the return.
Whether any case laws are available in this regard.
Whether we can object the assessment itself or appeal before CIT (A).
May 24 2019 12:00AM