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2021 (7) TMI 569 - ITAT KOLKATARevision u/s 263 - deduction on account of “unrealized gain on mutual fund” while computing book profit u/s 115JB - HELD THAT:- As specifically provided in clause (a) of Explanation 2 below Section 263 if in the opinion of Pr. CIT, an order passed by the AO is without making enquiries or verifications, which should have been made, the same shall be deemed to be erroneous in so far as it is prejudicial to the interest of revenue for the purpose of Section 263 calling for exercise of revisionary power. As regards the contention raised by assessee in support of the assessee’s claim for deduction on account of “unrealized gain on mutual fund” while computing book profit u/s 115JB of the Act on merit, we agree with the contention of the Ld. CIT DR that the same is not relevant at this stage as the said issue has not been decided by the Pr. CIT on merit in his impugned order passed u/s 263. While setting aside the order of the AO passed u/s 263, he has directed the AO to frame the assessment de novo after making proper verification / enquiry on the issue of allowability of assessee’s claim for deduction on account of “unrealized gain on mutual fund” while computing book profit u/s 115JB in accordance with law and after giving the assessee-company a reasonable opportunity of being heard. CIT thus has left this issue to be decided by the AO on merit in accordance with law after giving the assessee-company a reasonable opportunity of being heard and the assessee, therefore, is at liberty to support and substantiate its claim on this issue on merit before the AO by relying on the relevant judicial pronouncements. We uphold the impugned order passed by the Ld. Pr. CIT u/s 263 and dismiss this appeal of the assessee.
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