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2020 (8) TMI 263 - AT - Income TaxConversion of limited scrutiny into a complete scrutiny - Assumption of jurisdiction by AO for “Complete Scrutiny” whereas the case was selected for “Limited Scrutiny” under CASS - HELD THAT:- Approval shall be accorded by the PCIT/ CIT in writing after being satisfied about the merits of the issue necessitating complete scrutiny in that particular case. When these fact was pointed to the learned Sr. Departmental Representative, he could not state any of the approval accorded by the CIT or PCIT in writing or there is no satisfaction of CIT/ PCIT recorded in this case. Even otherwise, the escapement pointed out in the assessment order is limited to interest of fixed deposit amounting to ₹ 1,72,158/- whereas, the circular put a limit of ₹ 10 lacs, this being a case of Metro city like Bombay. None of the above conditions are met by the Assessing Officer for converting limited scrutiny into a complete scrutiny. Now, the question arises whether the Circular is binding on the Revenue authorities or not. Identical issues of conversion of limited scrutiny into a complete scrutiny by the decision of Hon’ble Andhra Pradesh High court in the case of Smt. Nayana P. Dedhia [2004 (8) TMI 99 - ANDHRA PRADESH HIGH COURT] and Amal Kumar Ghosh [2014 (4) TMI 244 - CALCUTTA HIGH COURT] AO has travelled beyond his jurisdiction for converting limited scrutiny case into complete scrutiny case. Hence, we quash the assessment order as well as the order of Commissioner of Income Tax (Appeals). - Decided in favour of assessee.
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