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2019 (5) TMI 18 - AT - Income TaxScope of enquiry in ‘Limited Scrutiny’ - disallowing depreciation allowance - approval of Pr. CIT/CIT - due process in law for converting appellant's limited scrutiny into complete scrutiny - disallowance of appellant's claim for deduction which is outside the scope of limited scrutiny - HELD THAT:- In the present case, examination of depreciation is not covered in the two issues selected for examination for limited scrutiny. This is not the case of the revenue that the approval was taken by the AO from CIT/Pr. CIT for converting the scrutiny from limited scrutiny case to total scrutiny case. AO is not justified in taking up the examination of depreciation claimed which is beyond the issues selected for limited scrutiny without obtaining prior approval from CIT/Pr. CIT. AO was not justified in making disallowance out of the depreciation claim of the assessee and therefore, the same is deleted. Appeal filed by the assessee is partly allowed.
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