Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1331 - ITAT DELHIAddition u/s 68 - Assessee was unable to prove that it carried out any business of jewellery or job receipts and, therefore, AO is justified in taxing the entire receipts from ‘income from other sources’ liable to be added u/s 68 - HELD THAT:- Here in this case, the scope of assessment was circumscribed to the issue flagged in limited scrutiny through CASS to examine the cash deposits during the demonetisation period, i.e., 09.11.2016 to 30.12.2016 - AO instead of examining this issue has travelled beyond and has held that entire receipts shown by the assessee as business income is ‘income from undisclosed sources’ and entire receipts have been added u/s 68 of the Act. First of all, there is no cash deposits post-demonetisation period i.e. 09.11.2016 to 30.12.2016, albeit present appeal pertains to FY 2014-15 and in this year only cash deposited in the bank account on various dates, which is clear from the bank statement and which has been stated to be received from job receipts and making of jewellery. Thus, the entire premise on which case was selected for scrutiny was non-existent and accordingly, AO could not have travelled beyond that for enlarging the scope of assessment by making addition on a different ground. The CBDT vide its Instruction No.20/2015 dated 29.12.2015 and Instruction No.5/2016 dated 14.07.2016 has categorically held that AO cannot travel beyond the scope of limited scrutiny and in case the AO wants to convert the limited scrutiny into complete scrutiny then he has to seek approval from concerned Pr.CIT or CIT which has to be given in writing after getting satisfaction from the merits on the issues. In this case, no approval has been taken by the AO from concerned Pr.CIT/CIT before making any addition beyond the scope of limited scrutiny. Accordingly, we hold that the entire addition which has been made cannot be sustained and the same is beyond the scope and violation of limited scrutiny. Accordingly, on this ground alone, the addition is deleted and the appeal of the assessee is allowed.
|