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2005 (4) TMI 629 - AT - Income TaxDeduction of depreciation allowed on plinth platforms - Storage facility to store food grains - issuing notice for limited scrutiny - disallowance of expenses - HELD THAT:- The CBDT Circular No. 8/2002, clarifies the stand of the Revenue to the effect that the Assessing Officer does not have the powers to make the entire assessment of income in limited scrutiny cases. There is no doubt that the power of the CIT(A) are co-terminus with the power of the Assessing Officer. So however, in this case when the Assessing Officer does not have the power to make full-fledged assessment in limited scrutiny cases, in my considered view, the CIT(A)'s power cannot be enlarged beyond the power of the Assessing Officer in limited scrutiny cases. Since the notice u/s 143(2)(i) was issued for limited scrutiny, the Assessing Officer is precluded from considering any other issue while making the assessment u/s 13(3) under limited scrutiny. The decision of the CIT(A) in considering the other claim of the assessee not covered in the notice issued u/s 143(2)(i) for limited scrutiny is contrary to the provisions of the Act and accordingly is set aside. The Assessing Officer shall consider the allowability of the claim of depreciation in respect of the plinth aggregating amount in accordance with law after giving reasonable opportunity or being heard to the assessee. In the result, the appeal of the assessee as well as that of the revenue are allowed for statistical purposes.
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