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2023 (10) TMI 1011 - ITAT MUMBAIRevision u/s 263 - Allowability of ‘business expenditure’ challenged by CIT - scope of limited scrutiny - as per CIT the impugned expenditure is neither a ‘capital expenditure’ not a ‘revenue expenditure’ and the same ought not to have allowed by the A.O. thereby making the assessment order erroneous and prejudicial to the interest of the Revenue - assessee’s case was selected for limited scrutiny - HELD THAT:- As evident from the records of the assessment order that neither was it a case of complete scrutiny nor was the issue pertaining to the expenses incurred by the assessee was before the A.O. during the assessment proceeding u/s. 143(3) of the Act. We are conscious of the propositions laid down by the various courts wherein it was held that the A.O. cannot go beyond the scope for which the assessment proceeding was initiated and thereby restricted to make a roving enquiry, into issues not confronted to the assessee. See SHREE ANIRUDDHA UPASANA FOUNDATION VERSUS CIT (EXEMPTION) , MUMBAI [2022 (9) TMI 973 - ITAT MUMBAI] Revenue has failed to substantiate that the issue related to the expenditure claimed by the assessee was before the A.O. during the assessment limited scrutiny proceeding nor it brought on record any fact to show that the A.O. had authority to go beyond the issue for which scrutiny assessment was initiated. Assessment order passed by the A.O. for the purpose of verifying the limited issue is not considered to be erroneous insofar as it is prejudicial to the interest of the Revenue. PCIT lacks jurisdiction to invoke the provision of section 263 of the Act in the present case in hand. Grounds raised by the assessee Allowed.
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