2022 (7) TMI 217

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....risdiction u/s 263 of the Income Tax Act (hereinafter referred to as the 'Act'). 2. The PCIT has set aside the order of the Assessing Officer observing that as per the provisions of section 115JB of the Act, in calculating the books profits, the assessee was required to take into account the long-term capital gains from sale of shares, whereas, the assessee has not done so, and had not included the profit on sale of shares amounting to Rs.7,64,95,348/- in computing book profit u/s 115JB of the Act. 3. At the outset, the ld. counsel for the assessee has invited our attention to the impugned assessment order dated 14.05.2019 to submit that the same was a limited scrutiny order. The ld. counsel has further invited our attention to page 1 of ....

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....n.com 129 (Karntaka HC) (iii) Nayek Paper Converters vs. ACIT in [2015] 93 ITD 144 (Kol) (ITAT Kolkata) (iv) Deccan Paper Mills Co. Ltd. in ITA Nos.1013&1635/Pun/2014 (ITAT Pune) (v) R&H Property Developers (P) Ltd. vs. Pr. CIT in ITA No.1906/Mum/2019 (ITAT Mumbai) (vi) Taj Paul Bhardwaj vs. PCIT in ITA No.463/Chd/2019 (ITAT Chandigarh) 4. The ld. counsel has further submitted that even otherwise the order of the Assessing Officer was not prejudicial to the interest of the Revenue. That after taking into account the indexed cost of acquisition, there will be resultant loss in the sale of shares. That since there was no capital gain, therefore, no prejudice has been occurred to the Revenue in this respect. The ld. counsel has furt....

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....stances, the Assessing Officer was authorised to examine only the aforesaid limited issue and he was not supposed to scrutinise any other issue relating to the assessment of income of the assessee. The Assessing Officer, therefore as per the law carried out limited scrutiny and passed the assessment order u/s 143(3) of the Act. The ld. PCIT, under these circumstances, could have exercised his revision jurisdiction in respect of observations/order of the Assessing Officer relating to the aforesaid limited issue of expenditure incurred on exempt income. The assessment order cannot be said to be erroneous on ground of non-examination of the issue which the Assessing Officer otherwise was not authorised to examine during the limited scrutiny as....