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2024 (2) TMI 840 - AT - Income TaxValidity of Revision u/s 263 enhancing scope of limited scrutiny proceedings - differential amount was received from Co-operative bank which was not eligible for deduction u/s 80P(2)(d) - As per CIT deduction claimed u/s 80P(2)(d) in respect of interest income wholly received from Co-operative Bank is not eligible for deduction u/s 80P(2)(d) - HELD THAT:- PCIT cannot enhance the scope of limited scrutiny proceedings by restoring to proceedings under section 263 of the Act. The assessment proceedings had been initiated for examining the issues like Investments/Advances/Loans, Disallowance u/s. 40(9) (Contribution to Fund, etc.) and Disallowance u/s. 40A(7) (Gratuity provision), however, in the 263 proceedings, the PCIT sought to revise the assessment order on the ground of non-consideration of claim of deduction of interest under Section 80P of the Act. In our view, this is not permissible. It is not open to the PCIT, while exercising powers under Section 263 of the Act, to find fault with assessment order on the ground of it being erroneous on an issue not covered by the scope of limited scrutiny assessment, when the Assessing Officer could not have possibly examined such issue under limited scrutiny assessment. Decided in favour of assessee.
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