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2022 (8) TMI 383 - AT - Income TaxRevision u/s 263 - selection of the case of the assessee for limited scrutiny under CASS - Low income and high loans/advances/ investments - HELD THAT:- On the basis of observations, we are of a strong conviction, that as stated by the Ld. AR, and rightly so, the Pr. CIT had clearly traversed beyond the scope of his jurisdiction and revised the order passed by the Assessing Officer by holding the same as erroneous, for the reason that he had while framing the assessment failed to look into and carry out necessary verification and examination of the assessee’s claim of loss from derivatives i.e, an issue which was never the subject matter for selection of the case of the assessee for limited scrutiny under CASS. Investment in unquoted equity shares and in unsecured loans/advances - We are principally in agreement with the view taken by the Pr. CIT that the order passed by the AO under Sec. 143(3)is erroneous in so far it is prejudicial to the interest of the revenue under Sec. 263, on the said count i.e, failure on the part of the AO in carrying out verifications as regards the substantial investments made in equity shares by the assessee during the year under consideration. Although, we have principally concurred with the Pr. CIT on the aforesaid issue, but at the same time find some substance in the claim of the ld. AR, that as stated by the assessee before the AO in the course of the assessment proceedings, as the fresh investment in unquoted equity shares made by the assessee company during the year under consideration was sourced out of its old loans and advances that were received back during the year, therefore, the same were made out of it duly disclosed sources. Be that as it may, having principally concurred with the order passed by the Pr. CIT under Sec. 263 qua the aforesaid issue in hand i.e, failure on the part of the AO in carrying out verifications as regards the substantial investments made in equity shares by the assessee during the year under consideration, we herein direct the AO to consider the aforesaid claim of the assessee in the course of the set-aside proceedings.
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