Case Law Details
Bharatnagar Buildcon LLP Vs PCIT (ITAT Pune)
ITAT Pune held that as the case was selected for limited scrutiny and the same was not converted into complete scrutiny, the scope of verification of AO cannot be extended to other issues/matter. Accordingly, appeal allowed.
Facts- The assessee e-filed its return declaring total income at Rs.78,29,61,960/-. The return was selected for Limited scrutiny through CASS. After certain notices and compliance by the assessee, the Assessing Officer (AO) completed the assessment u/s.143(3) of the Act at the returned income vide his order dated 26-12-2018.
On perusal of the assessment record, the ld. CCIT held the assessment order to be erroneous and prejudicial to the interest of the Revenue on two scores viz., (1) the issue of cost of acquisition of the debentures transferred by the assessee was not looked into by the AO and (2) that the assessee wrongly claimed deduction towards the Remuneration to partners anent to its income from long term capital gain. Eventually, he, set-aside the assessment order and directed the AO to make the assessment afresh. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.
Conclusion- The Hon’ble Supreme Court in Malabar Industrial Company Limited Vs. CIT has held that if two legally sustainable views exist on a point and the AO adopts one of such views, the CIT cannot revise the order on such a debatable issue.
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