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2019 (8) TMI 1120 - AT - Income TaxScrutiny through CASS - No approval taken - the loss on sale of shares was not shown in the original return but claimed in revised return - HELD THAT:- The case of the assessee was selected for limited scrutiny to examine the issue of commodity transaction/ derivatives (futures) transactions as mentioned by the AO in the body of the assessment order itself. AO in the instant case converted the limited scrutiny case to a full fledged scrutiny case which is evident from the assessment order. CBDT vide Instruction No.5/2016 dated 14.07.2016 and instruction No.225/402/2018 dated 28.11.2018 has issued certain guidelines for converting a limited scrutiny case to complete the scrutiny which is binding on the department. The Board has clearly mentioned that in a limited scrutiny case the AO cannot travel beyond the issues for which the case was selected and in case the AO wants to expand its scope of enquiry/ investigation other than the issues on which the case was selected for scrutiny, then in that case mandatory approval from the PCIT or CIT or PDIT or DIT has to be obtained. A perusal of the Assessment Order shows that no such approval has been taken. Deem it proper to restore the issue to the file of the AO with a direction to verify as to whether such approval has been taken and in case no such approval has been taken then the addition so made by the Assessing Officer and upheld by the CIT(A) stands deleted.The additional ground raised by the assessee is accordingly allowed. Revised return - AO alleged that assessee cannot take the advantage of provisions of section 139(5) by deliberately making the omission or wrong statement - HELD THAT:- It is not a deliberate omission but an inadvertent error. Further, there is no decision of the Hon’ble Jurisdictional High Court on this issue. It is the settled proposition of law that when two views are possible on an issue, the view which is favourable to the assessee has to be followed. CIT(A) should not have upheld the action of the AO in not considering the revised return filed. I, therefore, set aside the order of the CIT(A) and direct the AO to consider the revised return as in accordance with law. The ground raised by the assessee is accordingly allowed.
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