Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 255 - AT - Income TaxConversion of 'Limited scrutiny' to 'Complete Scrutiny' - competent authority for expanding the scope of Limited Scrutiny - addition u/s.69A r.w.s. 115BBE - approval from the competent authority for expanding the scope of Limited Scrutiny or not? - unexplained deposit of cash in the bank account - HELD THAT:- AO has not made any addition qua the deposit of cash for which the case was selected under scrutiny. Accordingly, we hold that the AO has exceeded his jurisdiction by treating the closing cash in hand as income from undisclosed sources which was not mandated under the ‘’Limited Scrutiny” notice issued u/s 143(2). DR before us has not brought anything on record justifying that the “Limited Scrutiny” was converted by the Assessing Officer under normal scrutiny after obtaining necessary approval from the appropriate authority. We are also not convinced with the argument of the DR that the issue raised by the AO is limited to the cash in hand available at the end of the financial year under consideration - as because if we admit the contention of the learned DR then the same will be beyond the scope of limited scrutiny as there was no question raised in the notice issued for the limited scrutiny under section 143(2) of the Act for the cash balance. The right course of action for the AO was to take the approval from the competent authority for expanding the scope of Limited Scrutiny to the regular assessment but he failed to do so. Thus, in our considered view inaction of the AO should not cause any harassment to the assessee. As relying on RAJESH JAIN VERSUS INCOME-TAX OFFICER, WARD-1, JIND [2005 (4) TMI 629 - ITAT CHANDIGARH] we are not convinced with the finding of the authorities below. As such the entire issue should have been limited to the extent of the dispute raised in the notice u/s 143(2) for the limited scrutiny but the AO in the present case has exceeded his jurisdiction as discussed above. Thus the ground of appeal of the assessee is allowed.
|