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2023 (4) TMI 29 - AT - Income TaxScope of limited scrutiny - Conversion of limited scrutiny to complete scrutiny - CIT(A) upholding the assessment framed by the AO wherein the AO has completed the assessment on the basis of complete scrutiny whereas the notices calling for details and information from the assessee were issued prior to the date on which the approval for complete scrutiny was given under the Act - HELD THAT:- AO has exceeded his jurisdiction in enquiring into those issues beyond the scope of limited scrutiny even prior to the date of conversion which is in clear violation of mandate given by CBDT in the said Circular and has been held by the Co-ordinate Bench of Delhi in the case of Dev Milk Foods Pvt. Ltd. [2020 (6) TMI 317 - ITAT DELHI] to be bad in law. We note that CBDT has in para 4 of the said instruction clarified that in a limited scrutiny, the scrutiny assessment proceedings would initially be confined only to issues and questionnaire, enquiry, investigation etc. would be restricted to such issues in the limited scrutiny. Only upon conversion of such case to complete scrutiny after following the procedure laid down as stated the AO may examine the issues other than the issues involved in the limited scrutiny but in the present case the procedures were not followed and assessment was conducted in violation of this Instruction. In our opinion, the order passed by the AO is bad in law and cannot be sustained for the said reason. Accordingly we quash the assessment order as nullity and bad in law. Issue raised by the assessee in ground no. 1 is allowed.
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