TMI Blog2022 (7) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... sing 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 Agenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de the order of the Assessing Officer observing that as per the provisions of section 115JB of the Act, 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 amounting to Rs.7,64,95,348/- in computing book profit u/s 115JB of the Act. 3. At the outset, the ld. counsel for the assessee has invited our attention to the impugned assessment order dated 14.05.2019 to submit that the same was a limited scrutiny order. The ld. counsel has further invited our attention to page 1 of the paperbook, which is the copy of the notice issued u/s 143(2) of the Act. As per the said notice, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kolkata) (iv) Deccan Paper Mills Co. Ltd. in ITA Nos.1013 1635/Pun/2014 (ITAT Pune) (v) R H Property Developers (P) Ltd. vs. Pr. CIT in ITA No.1906/Mum/2019 (ITAT Mumbai) (vi) Taj Paul Bhardwaj vs. PCIT in ITA No.463/Chd/2019 (ITAT Chandigarh) 4. The ld. counsel has further submitted that even otherwise the order of the Assessing Officer was not prejudicial to the interest of the Revenue. That after taking into account the indexed cost of acquisition, there will be resultant loss in the sale of shares. That since there was no capital gain, therefore, no prejudice has been occurred to the Revenue in this respect. The ld. counsel has further relied upon the following case laws: (i) Best Trading and Agencies Ltd. vs. DCIT in [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue and he was not supposed to scrutinise any other issue relating to the assessment of income of the assessee. The Assessing Officer, therefore as per the law carried out limited scrutiny and passed the assessment order u/s 143(3) of the Act. The ld. PCIT, under these circumstances, could have exercised his revision jurisdiction in respect of observations/order of the Assessing Officer relating to the aforesaid limited issue of expenditure incurred on exempt income. The assessment order cannot be said to be erroneous on ground of non-examination of the issue which the Assessing Officer otherwise was not authorised to examine during the limited scrutiny assessment. The case laws cited by the ld. counsel for the assessee are squarely appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer on some other issue. Even otherwise, the ld. counsel has demonstrated that as per the law laid down by the Karnataka High court in the case of Best Trading and Agencies Ltd. vs. DCIT (supra), the benefit of indexed cost of acquisition is to taken into consideration for computing capital gains while computing book profit u/s 115JB of the Act. The ld. 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. 7. Since none of conditions stipulated u/s 263 of the Act is satisfied i.e. neither the assessment order is er ..... X X X X Extracts X X X X X X X X Extracts X X X X
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