2023 (12) TMI 1291

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....venue : Shri Shramdeep Sinha, CIT. DR. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the assessee against the order of the Ld. Principal Commissioner of Income Tax, Rajkot-1, arising in the matter of order passed under Section 263 of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2016-17....

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....enses of general in nature should not have been allowed as deduction. However, the Ld. PCIT, accepted to allow the deduction on account of depreciation u/s 32 of the Act even the income from lease rent is charged to tax under the head other sources. Accordingly, the Ld. PCIT held that the assessment framed u/s 143(3) of the Act is erroneous in so far prejudicial to the interest of the revenue for ....

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....is chargeable to tax under the head "other sources" or the "business income". Accordingly, the Ld. AR contended that the Ld. PCIT cannot hold the assessment order as erroneous in so far prejudicial to the interest of the revenue. Thus, it was prayed that the order passed by the Ld. PCIT is liable to be quashed. 6. On the other hand, the Ld. DR vehemently supported the order of the authorities b....

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....y is converted to regular scrutiny. Accordingly, we hold that the Ld. PCIT cannot exercise his power u/s 263 of the Act, to verify those items which were not subject matter of the scrutiny. Thus, we hold that the Ld. PCIT has exceeded his jurisdiction by holding assessment as erroneous in so far prejudicial to the interest of the revenue on account of non-verification of the income whether the sam....