Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 151 - AT - Income TaxEnlarging the scope of limited scrutiny - changing limited to complete scrutiny - scientific research expenditure disallowance and disallowance u/s 14A - HELD THAT:- It remains an uncontroverted fact that the case of the assessee was selected for limited scrutiny for the reason Unsecured loans from persons who have not filed their Return of Income. Apart from this there is no mention of any other approval taken by the Assessing Officer to examine the issues of donation for scientific research expenditure as well as disallowance u/s 14A of the Act. It is discernible from the fact that the two issues relating to scientific research expenditure and disallowance u/s 14A of the Act are not connected to the issue of unsecured loans. It is also not the case that while examining the issue of unsecured loans the ld. Assessing Officer found some connection with the issues of scientific research expenditure or disallowance u/s 14A of the Act. Thus it is an admitted fact that the AO exceeded his jurisdiction provided for limited scrutiny by disallowing the claim of scientific research expenditure u/s 35(1)(ii) and disallowance under section 14A of the Act. We are of the considered view that in absence of any prior permission from competent authority for enlarging the scope of limited scrutiny or changing the same to complete scrutiny, AO was not within his jurisdiction to make the disallowance u/s 35(1)(ii) and 14A. Addition u/s 68 - unexplained unsecured loans - HELD THAT:- Since the assessee has duly discharged its primary onus by filing all necessary evidence which in our considered view are sufficient enough to prove the identity and creditworthiness of the share subscriber and genuineness of the transaction to explain the nature and source of the alleged cash credit. We fail to find any infirmity in the finding of the CIT(A) holding that the assessee has established the identity and creditworthiness of the loan creditors and genuineness of the loan transactions received by the assessee as well as the amalgamated companies during the year. Thus, no interference is called for in the finding of the ld. CIT(A) on this issue of addition u/s 68. Revenue appeal dismissed.
|