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2022 (7) TMI 217 - AT - Income TaxRevision u/s 263 - Error in computing MAT - as per the provisions of section 115JB in calculating the books profits, the assessee was required to take into account the long-term capital gains from sale of shares, whereas, the assessee has not done so, and had not included the profit on sale of shares in computing book profit u/s 115JB - HELD THAT:- Reopening of assessment u/s 147 of the Act wherein it has been held that apart from the issue on which the assessment is reopened, the Assessing Officer can also look into other issues, as the entire assessment is open for scrutiny before the AO. However, in case of exercising of revision jurisdiction u/s 263 of the Act, the above proposition of law is not applicable as the very condition that the order of the Assessing Officer should be firstly erroneous is to be satisfied. If the order of the AO is not erroneous then the ld. PCIT cannot exercise his revision jurisdiction u/s 263 - As observed above in this case, there was no error in the assessment order, for non-examination of the issue, which the Assessing Officer was not authorised to examine. Therefore, the ld. PCIT did not have jurisdiction u/s 263 of the Act to revise/set aside the order of the Assessing Officer on some other issue. Even otherwise, the ld. counsel has demonstrated that as per the law laid down in the case of Best Trading and Agencies Ltd. [2020 (9) TMI 94 - KARNATAKA HIGH COURT] benefit of indexed cost of acquisition is to taken into consideration for computing capital gains while computing book profit u/s 115JB - counsel has demonstrated that if benefit of indexed cost of acquisition is given to the assessee then the resultant figure will be long-term capital loss. Therefore, even otherwise, the order of the Assessing Officer is not prejudicial to the interest of the Revenue. Since none of conditions stipulated u/s 263 of the Act is satisfied i.e. neither the assessment order is erroneous nor prejudicial to the interest of the Revenue, therefore, order passed by the ld. PCIT u/s 263 of the Act being without jurisdiction is wrong and illegal and the same is hereby quashed. Appeal of assessee allowed.
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