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2020 (5) TMI 46 - AT - Income TaxConversion of limited scrutiny into complete scrutiny assessment u/s 143(3) - No approval by the appropriate authority for converting the limited scrutiny into complete scrutiny - case of the assessee was selected for limited scrutiny through CASS - jurisdiction of AO by passing the impugned order u/s 143(3) for the reason that case was initially selected for limited scrutiny and without seeking permission from the competent authority to convert limited scrutiny into complete scrutiny, the addition has been made - HELD THAT:- AO neither in the assessment order nor in the assessment proceedings (as apparent from the notings in the order sheet place on record) has stated that he has sought and has been granted any approval by the appropriate authority for converting the limited scrutiny into complete scrutiny or travelling beyond the matter for which the matter was initially selected for limited scrutiny - nothing has been brought to our notice during the course of hearing by the ld DR that such approval was sought by the AO and has been granted by the appropriate authority. AO has taken up the fresh issue of unexplained investment for purchase of immovable property, which has no connection with the issue of sale of immovable property for which the matter was selected for limited scrutiny, without seeking prior approval of the competent authority. The addition so made u/s 69 is liable to be quashed as the order passed by the AO would be nullity as beyond his jurisdiction in absence of requisite approval from the competent authority. The instructions issued by CBDT from time to time are clear on this point. AO can thus widen the scope of scrutiny where the matter was initially selected for scrutiny assessment. However, the condition precedent for such action of the AO is that he has to follow the procedure so laid down and seek prior approval of the competent authorities. In the instant case, it is an admitted fact that no such approval has been taken by the Assessing officer. It is therefore, a case where the CBDT Instructions which are binding on the Assessing officer have not been followed by him. It is a consistent position taken by various Benches of the Tribunal including Jaipur Benches that where the Assessing officer has taken up fresh issue without converting limited scrutiny to complete scrutiny by taking prior approval of the competent authority, then the said order passed by the Assessing officer will be nullity as beyond his jurisdiction. We set aside and quash the order passed by the AO u/s 143(3) of the Act and ground no. 1 of the assessee’s appeal is allowed.
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