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2020 (8) TMI 829 - AT - Income TaxLimited scrutiny - Disallowance u/s. 14A - conversion of the case from limited scrutiny to complete scrutiny go beyond the reasons of the limited scrutiny - limited scrutiny included for investment and income relating to securities are duly disclosed or not - HELD THAT:- In the present case, the case of the assessee was picked up for limited scrutiny for the reasons stated above. The reasons did not speak about any disallowance of expenditure u/s. 14A of the Act. If the AO wanted to go beyond the reasons of the limited scrutiny, then he should have invoked the provisions of complete scrutiny by obtaining the necessary approvals. In this case, no such approval or conversion of the case from limited scrutiny to complete scrutiny was shown. Undisputedly, case of the assessee was for limited scrutiny and the reasons for picking up of the case of assessee under limited scrutiny does not include the disallowance of expenditure u/s. 14A of the Act, hence, we cannot uphold the disallowance made by the AO and confirmed by the Ld. CIT(A). In the result, we direct the Assessing Officer to delete the disallowance made u/s. 14A of the Act read with Rule 8D - Decided in favour of assessee.
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