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2023 (8) TMI 888 - HC - Income TaxConversion of limited Scrutiny into Complete scrutiny - Expansion of scope of Scrutiny - whether AO which had initially issued notice u/s 143(2) for a Limited Scrutiny of the return filed by the assessee on three aspects, could have expanded the scope prior to obtaining approval for a Complete Scrutiny by the appropriate authority? - Whether Tribunal erred not considering the fact that the case was converted from Limited Scrutiny to Complete Scrutiny on approval of the Pr. CIT in writing and only thereafter the Assessment Order was passed ? - HELD THAT:- As the scheme of assessment as provided u/s 143 is a complete code by itself and the circumstances under which the power under sub-section (2) of Section 143 could be invoked has been clearly spelt out and on a reading of sub-section (3) of Section 143, it is evidently clear that on the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the AO may require on specified points, and after taking into account all relevant material which he has gathered, the AO shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment. Therefore, the question of part of the provision being procedural is an incorrect interpretation of the scheme provided u/s 143 - As noted above, the CIT(A) has examined the merits of the matter and after taking note of the facts granted relief to the assessee to the extent indicated therein. Revenue has not made out any case for interference of the order passed by the Tribunal.
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