2021 (7) TMI 607

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....ec 263 on untenable and illegal grounds. Hence, the order passed under section 263 may be vacated. 2. That the Ld PCIT 20 has erred on facts and on law in invoking the provisions of sec 263 as he is not jurisdictional PCIT of the appellant. Hence, the order passed under section 263 may be vacated. 3. That the Ld PCIT 20 has erred on facts and in law in invoking the provision of section 263 on account of calculation of capital gain on sale of property ignoring the fact that the case for scrutiny was selected on limited grounds and calculation of capital gain was not part of it. Hence, the order passed under section 263 may be deleted. 4. That the Ld PCIT has erred on facts and in law in passing the order under sec ....

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....050/- after making the addition of Rs. 11,65,000/- u/s 68 of the Income Tax Act. 3. You have purchased a property, GF-58, Ground Floor, Vardan Apartment Abhay Khand -llll, Indirapuram, Ghaziabad on 28/01/2015 for Rs. 66,50,000/-, in which you own 50% share. Also you have sold property having address "C-1/13, Mangal Co- op. Group Housing Society Ltd. Plot No. 16, Vasundhara Enclave Delhi-96 on 24/12/2014 for Rs. 1,22,98,000/- in which you hold 50% ownership. The sale proceed was utilized for the purchase of property GF-58, Ground Floor, Vardan Apartment Abhay Khand -IIII, Indirdpuram, Ghaziabad. In the case of sale of property No. C-1/13, Mangal Cooperative Group/housing Society Ltd., Vasundhara Enclave, Delhi you have shown long te....

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....he order of the AO under discussion is erroneous in so far in the course of assessment proceeding as it is prejudicial to the interest of revenue." 6. Heard the arguments of both the parties. 7. The primary contention of the ld. AR is that the case of the assessee has been selected for limited scrutiny on two grounds viz. verification of cash deposits, verification of Purchase of property only and expanding the scope of scrutiny by the way of order u/s 263 is legally not valid. 8. On the other hand, the ld. DR argued that the ld. PCIT has got wider powers to examine the entire case to plug the loopholes and leakage of revenue. The written submission of the ld. DR is as under: "In this regard, it is humbly submitted that Ex....

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....d. On that basis the Commissioner of Income Tax had, after setting aside the order of the Assessing Officer, simply directed the Assessing Off icer to carry out thorough and detailed inquiry. 2. BSES Raidhani Power Ltd. Vs PCIT [2017] 88 taxmann.com 25 (Delhi)/[2017] 399 ITR 228 (Delhi) Hon'ble Delhi High Court held that non-consideration of larger claim for Rs. 298.93 crores as depreciation and consideration of only a part of it being Rs. 6.45 crore by Assessing Officer, who did not go into issue with respect to whole amount, was an error, that could be corrected under section 263. Commissioner has power to consider all aspects which were subject matter of Assessing Officer's order, if in his opinion, they were errone....

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....td. Vs PCIT T2017] 77 taxmann.com 285 (SC)/r20171 245 Taxman 127 (SC) Hon'ble Supreme Court has dismissed SLP against High Court's ruling that where assessee with a small amount of authorised share capital , raised huge sum on account of premium, exercise of revisionary powers by Commissioner opining that this could be a case of money laundering was justified. 7. Commissioner of income Tax Mumbai Vs Amitabh Bachan Civil Appeal 5009 of 2016 dated May 11th 2016 (SC) Where Hon'ble Supreme Court admitted the SLP of the Revenue and held that the Commissioner was justified in invoking section 263 in view of the reasons recorded in the show cause notice issued after completion of assessment proceedings since he felt ....