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2022 (8) TMI 453 - AT - Income TaxRevision u/s 263 - As per CIT cost of improvement is not supported by any material evidences and also that the rental admitted by the Assessee under the head ‘income from house property’ was prima facie on the lower side, keeping in view the locality and the properties let out which would fetch more rental income than admitted - assessment framed by the AO is a ‘limited scrutiny’ case for verification of the deduction from the capital gains claimed by the Assessee - HELD THAT:- As the limited scrutiny was for the purpose of examining the claim of deduction from the capital gains and no other issue was there. Hence, we are of the view that this issue now cannot be examined while proceeding u/s.263 of the Act making revision to the assessment order. Hence, the scrutiny assessment is only for a limited issue, that was a claim of deduction u/s.54 of the Act which has been accepted by the Assessing Officer and even in the order giving effect to the order of the Principal Commissioner of Income Tax u/s.263 of the Act, the Assessing Officer has accepted the stand of the Assessee. Hence, according to us, the revision order on this issue is just academic and nothing more. Rental income under the head ‘income from house property - As regards to the second issue which was never before the Assessing Officer during the course of the original assessment and that the assessment was for a limited scrutiny, the issue of rental income cannot be examined in the revision proceedings. Hence, according to us, this issue on rental income is decided in favour of the Assessee and to that extent the revision order is quashed. Claim of deduction u/s.54 of the Act, the Assessing Officer has already examined the issue and the issue only remains academic.
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