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2020 (1) TMI 1435 - AT - Income TaxScope of Limited scrutiny - cash deposit in bank and cash in hand shown in the return of income - no approval from CIT/Pr. CIT - Whether disallowance under section 43B of the IT Act, 1961 for non-payment of VAT is not within the scope of limited scrutiny? - HELD THAT:- Even if some other issue comes to the notice of the AO, he cannot make any other addition / disallowance without obtaining prior approval from concerned CIT/Pr. CIT. - in the absence of such approval from the CIT/PCIT, even the voluntary offer of the assessee also cannot give the AO jurisdiction to make any other addition although such offer by the assessee can be a basis for the AO to seek approval of CIT/PCIT . On this aspect, argument was made before the learned CIT(A) also but in para 5 of his order, he has not decided this aspect. He has simply stated in this para that submission was made before him on the technical issue and the case was selected for scrutiny assessment under the CASS system of selection “limited type” and no prior approval was taken from the higher authorities, have been considered and found that the AO has rightly examined as to whether the cash deposit has been made from disclosed sources and whether cash in hand shown in the return of income is correct for which purpose the case was selected for scrutiny. But after observing so, he has not given any finding as to how the other addition made by the AO under section 43B of the IT Act, 1961 is justified under these facts. - Decided in favour of assessee.
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