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2022 (9) TMI 151 - ITAT MUMBAIRevision u/s 263 by CIT - charging notional rent on house property u/s 23 - Whether AO cannot be said to be erroneous so far as prejudicial to the interest of the revenue in case of limited scrutiny assessment cases, where AO has not made any enquiry on other aspects other than the issues involved in limited scrutiny notice? - HELD THAT:- AO collected information beyond his powers, but based on such information, which has been collected by the learned assessing officer, PCIT could not have stated that addition with respect to the income from house property has not been charged by the learned AO, though it was not part of the limited scrutiny issue, therefore, the order of the assessment is erroneous in so far as prejudicial to the interest of revenue. several judicial precedents cited before us also supports the case of the assessee. The reason given for rejection of this argument by the learned PCIT is also not palatable. It is held by him that as assessee has succumbed to the jurisdiction of the assessing officer and supplied certain information, the assessee loses his right to challenge the same later on. Based on the information mentioned in the revisionary order, the learned PCIT should have reprimanded the assessing officer by asking assessee to furnish the information, which were not within the scope of limited scrutiny. Instead of that, PCIT has invoked the provisions of Section 263 on such information. The action of the PCIT also is not in consonance with the direction/ instructions of the central board of direct taxes on limited scrutiny. Therefore, we have no hesitation that the order passed by the learned that PCIT is without jurisdiction therefore we quash it. Appeal of assessee allowed.
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