2025 (9) TMI 371

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....t Unit, Income-tax Department (in short, 'Ld.AO'), passed under section 143(3) r.w.s 144B of the Act, date of order 08/09/2022. 2. The brief facts of the case are that the assessee is a company engaged in business of manufacturing specialty chemicals, which are dominantly used as performance chemicals in textile processing. The assessee filed its return of income on 06/02/2021 declaring total income at Rs. 29,15,66,300/-. The return was processed under section 143(1) of the Act. The case was selected for scrutiny through CASS for verification of - (i) Capital gain / loss; and (ii) loss from currency fluctuation. Both the issues were duly scrutinized by the Ld.AO and no addition was made in respect of CASS issue. After that, by invoking p....

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....curities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019) and JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.). As the issue is highly debatable, any view taken by the Ld. AO during the course of original assessment proceeding has to be considered as a plausible view and the view taken by the Ld. PCIT, howsoever plausible, is nothing but a change of opinion for which jurisdiction u/s 263 of the Act cannot be assumed. Further, he argued that the assessment was completed through CASS for limited scrutiny, so the Ld.AO had no jurisdiction for verification of other issues, except the two issues, as directed CASS system. Further, related to education cess, the Ld.AR state....

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....d legitimately fall within the scope of revision under section 263 are confined only to the parameters of selection for limited scrutiny, namely: (i) capital gains/loss; and (ii) loss from currency fluctuation. We find support in the judgment of the Hon'ble Supreme Court in Principal Commissioner of Income-tax-1 v. V-Con Integrated Solutions (P.) Ltd. [2025] 173 taxmann.com 774 (SC), wherein it was held: "2. In our opinion, the order passed by the High Court, which upheld the decision of the Tribunal, is correct on facts and in law. This case does not involve a failure by the assessing officer to conduct an investigation. Instead, according to the Revenue, it is a case where the assessing officer having made in....