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2021 (5) TMI 485 - AT - Income TaxRevision u/s 263 - directions for fresh assessment on the issues which were not the subject matter of the assessment framed on the basis of limited scrutiny - wrong allowance of exemption u/s 54 as assessee had not deposited the capital gain in Capital Gain Deposit Account before the specific date - HELD THAT:- Admittedly, the case of the assessee was selected for limited scrutiny under CASS for the reason that there is substantial increase in the capital in the relevant year and the AO passed the assessment order and accepted the return filed by the assessee after examining the issue regarding increase in capital account as the assessee had credited his capital account with agricultural income and the capital gain from sale of flat. The assessee has reflected that same in its capital account - Further in response to the letter dated 07.10.2016 issued by the AO during assessment proceedings, the assessee submitted his reply explaining the reason for increase in capital. Ld. Pr. CIT exercising jurisdiction under section 263 of the Act, directed the AO to make fresh assessment on the issues which were not the subject matter of the limited scrutiny. CIT(A) has exceeded jurisdiction u/s 263 of the Act by directing the AO to make fresh assessment on the issues which were not the subject matter of the assessment framed on the basis of limited scrutiny. Further, no contrary decision was brought to our notice by the Ld. DR. Hence the appeal of the assessee and set aside the impugned order passed by the Ld. Pr. CIT u/s 263 - Decided in favour of assessee.
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