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2021 (3) TMI 3 - AT - Income TaxConversion of limited security to complete security - income from undisclosed source - assessee has made more withdrawal against the available deposit - HELD THAT:- AO issued four notices u/s. 142(1) all the notices were duly replied by the ld. A.O. though assessee case was selected for limited scrutiny but in each facts, Ld. A.O. went beyond contents of earlier facts. As per CBDT Circular, Ld. A.O. can only examine those issues which the case has been selected or the issues mentioned therein. If the A.O. of the view that there is a potential escapement of income, he may convert the limited scrutiny in to complete scrutiny. But view should be reasonable view based on credible available or material available on record. And in this case, approval of the Pr.CIT/CIT is required and such approval shall be accorded by the Pr.CIT/CIT in writing after being satisfied about merit of the issues. Necessitating complete scrutiny in that case but in the case in our hand, no prior permission was taken by the assessee. The only purpose for the selection of the case was mistaken cash deposit which is Assessing Officer extended to other issues such as how Chartered Accountant can deposit such huge cash deposit and withdrawal the cash. Same is not permissible under law particularly when case was selected for limited scrutiny. In the result, appeal of the assessee is allowed on legal ground however we do not want to go into the merit of the case.
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