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2022 (9) TMI 297 - AT - Income TaxRevision u/s 263 by CIT - income on sale of the 7 vacant sites - Correct head of income - Deduction u/s 54F - As per CIT treated as income from business rather than income under the head “capital gain - whether the assessee would be entitled to the deduction u/s 54F and in this context examine whether the assessee owned more than 2 properties and the nature of the property owned by the assessee? - HELD THAT:- The law is well settled that the limited scrutiny scope cannot be extended by the AO - decision in the cae of Balvinder Kumar [2021 (3) TMI 649 - ITAT DELHI] followed. - the Assessing Officer could not go beyond reason for selection of matter for limited scrutiny. Therefore it was not open to the PCIT to pass revisionary order and remit matter to AO on other aspects other than the reason for selection of case for scrutiny. Therefore, the directions of the PCIT in so far as it relates to the examination of whether the income on sale of plots would give rise to LTCG or income from business cannot be sustained and the said directions are directed to be deleted and are hereby quashed. Deduction u/s 54F - Assessee owning more than one house property or other property belongs to HUF - HELD THAT:- It appears that the PCIT has confused himself with the return of the individual and that of the HUF. - If the assessee owned only one house property and that was also a commercial property, then there is no necessity to examine the claim for deduction u/s.54F on the ground that the assessee owned more than one house property other than the new asset as on the date of transfer. - Matter restored back to CIT.
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