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2021 (7) TMI 202 - AT - Income TaxRevision u/s 263 - takeover of the limited company by the L.L.P. - non-conversion of a limited scrutiny into a complete scrutiny by the AO - Interest Expenses,Investment in Unlisted Equities, Low income and high loans/advances/investments AND Low income and high investments - HELD THAT:- Non-conversion of a limited scrutiny into a complete scrutiny by the AO cannot be considered as a ground for making a revision u/s 263 of the Act. Further the ld. Pr. CIT states that the AO should have made enquiry into the conversion certificate filed by the assessee. The nature of enquiry or the possible prejudice to the Revenue is not stated by the Pr. CIT. As ssessee submits that this is not a case of conversion but a case of takeover. There is no finding or even a whisper that the certificate is not genuine. As regards, the assets of the company and investments, we find from the copy of audited balance sheet of the company and copy of the audited balance sheet of the L.L.P., that there is no variation in figures and hence in our view there is no error which causes prejudice to the interest of the Revenue. The ld. Pr. CIT has not brought out any variations. It is also not true on the part of the Pr. CIT that the order was passed in a haste for the reason that, three hearings were taken place after the proceedings was initiated on 09.09.2017 and the assessment was completed on 11.12.2017. Even otherwise unless there is an error which is prejudicial to the interest of the Revenue it cannot be said that power u/s 263 of the Act can be invoked. In view of the above discussion we quash the order passed u/s 263 of the Act and allow this appeal of the assessee.
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