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2023 (6) TMI 276 - AT - Income TaxScrutiny assessment - Disallowance of expenses - assessment beyond the issue for which the case was selected for scrutiny - submissions of assessee that the case of the assessee was taken for limited scrutiny and the AO traversed beyond its jurisdiction - HELD THAT:- There is no dispute with regard to the fact that the case of the assessee was selected for limited scrutiny assessment in respect of issue of remuneration paid by the firm. AO while framing the assessment disallowed the expenses claimed by the assessee. It is the case of the assessee that while disallowing the expenses the Assessing Authority traversed beyond its jurisdiction. DR could not controvert the fact that the case was selected for scrutiny in respect of remuneration paid by the firm and it was not to verify the correctness of the claim related to the expenses. Therefore, without approval by the Competent Authority for making assessment beyond the issue for which the case was selected for scrutiny, is beyond jurisdiction of the learned Assessing Authority. Hence, the addition made by the Assessing Authority is hereby deleted. Decided in favour of assessee.
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