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2023 (6) TMI 725 - AT - Income TaxConversion of “Limited Scrutiny” into “Complete Scrutiny” - TP adjustment representing transaction of purchase of goods/spares - HELD THAT:- The entire issue should have been limited to the extent of the dispute raised in the notice issued u/s 143(2) for the limited scrutiny but the AO in the present case has exceeded his jurisdiction as discussed - Thus, we hold the addition made by the AO on account TP adjustment is without having valid jurisdiction therefore the same cannot be sustained. Hence, the ground of appeal of the assessee in this regard is hereby allowed. Addition u/s 68 - receipt of share application money from Shri Ramesh Vardhan - HELD THAT:- The redemption of such mutual fund and utilization of same cannot be doubted. In effect, the assessee is able justify the source of investment on account of salary, commission income and opening bank balance from explained sources and amount of credit on account of redemptions of mutual funds which is sufficient enough to justify the source of share capital received by the assessee from the director. Assessee company has duly explained the sources of fund in the hand of Shri Ramesh Vardhan. The revenue authority also accepted the partial amount but not accepted source of the other amount only based on surmises and conjecture. Thus, we hold that the assessee has discharged the onus cast u/s 68 of the Act with respect to receipt of share application money from Shri Ramesh Vardhan. Decided in favour of assessee.
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