INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - Invocation of jurisdiction for expending the jurisdiction of AO to examine issues beyond the scope of limited scrutiny -

CIT exercised revisionery powers undrs ection 263 and held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO not having examine utilization of amount deposited under Tea Development Accounts Scheme, 2007 as to whether the same satisfied relevant stipulation therein or not.Held: AO had framed his regular assessment involving limited scrutiny on certain issues not inlcuding section 33AB deduction to the purpose of impugned withdrawals, therefore, section 263 revision proceedings ought not to have been set into motion for expanding the jurisdiction of AO to examine issues beyond the scope of limited scrutiny. Even if AO had not carried out necessary enquiries about purpose of assessee withdrawals amounting of Rs. 1,65,36,500 from Tea Development Accounts Scheme, 2007, no prejudice had been caused to interest of revenue since amounts pertained to specified purpose under the scheme only for green tea factory material along with plant and equipment of former two and irrigation.

Relied:Sanjeev K.Khemka v. Pr. CIT [ITA No. 1361/Kol/2016decided on 2-6-2017] and Sri Hartaj Sewa Singh v. Dy. CIT (IT) [ITA No. 1011/Kol/2017decided on 27-4-2018] : 2018 TaxPub(DT) 2556 (Kol-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

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