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2007 (7) TMI 424 - AT - Income TaxAssessment determining the total income or loss - Validity of limited scrutiny - Receipts Of rented income - CIT(A) quashed the order u/s 143(3)(i) passed by the Assessing Officer and holding that the same as null and void ab initio - HELD THAT:- It is clear that if the Assessing Officer has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible then the Assessing Officer may serve on the assessee a notice specifying the particulars of such claim of loss, exemption, deduction, allowance or relief and require it to produce evidence or particulars specific therein or on which the assessee may rely in support of the claim. Further, if the Assessing Officer considers that it is necessary or expedient to ensure that the assessee had not understated the income or has not computed excessive loss, etc. then he may issue notice u/s 143(ii). The scope of section 143(2)(i) is very limited. It could operate only against the loss, exemption, and allowance or relief claimed which is inadmissible. According to revenue the change of head with regard to income from business to other sources falls within the scope of this limited scrutiny assessment and not within the scope of section 143(2) on which we are unable to subscribe to. Thus, we are of the view that his going beyond the scope of the notice is improper and therefore the CIT(A) rightly decided the issue in favour of the assessee. In the result, appeal by the revenue fails and dismissed.
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