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2023 (1) TMI 1340 - ITAT KOLKATAAssessment of income as per the original return or revised return - case was picked up for limited scrutiny - AO has taken up the returned income as per the original return of income only on the ground that the case was selected for scrutiny of the original return of income - HELD THAT:- Action of the Assessing Officer taking returned income as per the original return of income only is not justified at all. The original return of income of the assessee was substituted by the revised return of income which was filed within the prescribed time period. The case was selected for scrutiny on two issues, which the assessee successfully explained before the AO, therefore, as supposed to assess the income as per the revised return of income. If the AO wanted to scrutinise any other issue also including the withdrawal of interest income, which the assessee claimed to be erroneously offered, the AO could have got converted the limited scrutiny assessment into full assessment by getting permission from the competent authority. Even otherwise, AO has merely taken the returned income as per original return of income without making any disallowance in respect of above issue in the revised return of income. Therefore, the action of the lower authorities in taking the returned income as per original return of income is not justified as the assessee had already filed a valid revised return within the statutory period and has also explained the issues satisfactorily to the AO for which the return was selected for limited scrutiny. In view of this, the impugned order of the CIT(A) is set aside and the AO is directed to accept the income of the assessee as per the revised return of income. Appeal of the assessee stands allowed.
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