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2022 (4) TMI 458 - AT - Income TaxRevision u/s 263 - CIT disallowing the deduction u/s 80P - case of the assessee was selected for limited scrutiny under CASS for the reason to verify whether the cash deposit has been made from disclosed sources - HELD THAT:- We find merit in the arguments of the Ld. AR that where the case was selected for a limited scrutiny, the Instruction of the CBDT No. 20/2015, dated 29/12/2015 (supra) has been rightly following by the Ld. Assessing Officer by limiting the assessment proceedings to the limited issue as generated by the CASS. The Coordinate Bench of the Mumbai Tribunal in the case of M/s. Su-Raj Diamond Dealers Pvt Ltd vs. CIT [2019 (12) TMI 26 - ITAT MUMBAI] has quashed the order passed U/s. 263 of the Act in the case of limited scrutiny assessment, holding that the Ld. Pr. CIT under the garb of section 263 of the Act, cannot exceed his jurisdiction. Admittedly, the case of the assessee was selected for limited scrutiny under CASS for the reason to verify whether the cash deposit has been made from disclosed sources. However, the Ld. Pr. CIT by exercising his jurisdiction u/s. 263 of the Act, directed the Ld. AO to make a fresh assessment on the issues which were not the subject matter of the limited scrutiny. Considering all since the issue raised by the assessee in the present case has already been decided in favour of the assessee by various Benches of the Tribunal as discussed above, we find merit in the arguments of the Ld. AR that the Ld. Pr. CIT has exceeded his jurisdiction U/s. 263 of the Act by directing the Ld. AO to make a fresh assessment on the issues which were not the subject matter of the assessment framed on the basis of the limited scrutiny. However, no contrary decision was brought to our notice by the Ld. DR. Hence, respectfully following the decisions of the Tribunal in the foregoing paragraphs, we allow the appeal of the assessee and set-aside the order of the Ld. Pr. CIT passed U/s. 263 - Appeal of assessee allowed.
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