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2018 (5) TMI 1855 - AT - Income TaxScope of scrutiny in cases selected under CASS - conversion the limited scrutiny in to unlimited - CBDT Instruction No.7/2014, dated 26-09-2014 - approval of the Pr.CIT/DIT for taken up for comprehensive scrutiny - case was picked up for limited scrutiny relates to the AIR information on the cash deposits in the savings bank account - HELD THAT:- It is an undisputed fact that the reason for which the case was picked up for limited scrutiny relates to the AIR information on the cash deposits in the savings bank account. It is also an undisputed fact that the AO did not obtain the written approval of the concerned Commissioner before extending the scope of scrutiny to the interest disallowed and denial of claim of deduction u/s.54 of the Act. It is on record that the Board did not permit the AO to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT [1999 (2) TMI 61 - BOMBAY HIGH COURT] was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. Board circular do not permit the AO from converting the limited scrutiny case like the present one to the unlimited one without the approval of Administrative Commissioner of Income Tax. AO did not mention the reasons for not taking such an administrative approval before making the said addition. As such, the Pune Bench of the Tribunal has already taken the favourable view in these matters in favour of the assessee. We do not understand why AO failed to take approval for such conversion. Considering the settled nature of the issue, we allow the legal ground raised by the assessee vide Ground No.1 and hold that the assessment order passed by the AO is bad in law and void-ab initio. Appeal of the assessee is partly allowed.
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