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2020 (6) TMI 673 - AT - Income TaxExpansion of scrutiny from the ‘Limited Scrutiny’ to ‘Complete Scrutiny - Addition u/s 68 - proceedings initiated for limited scrutiny - Assessee’s case was selected by CASS (computer aided scrutiny selection) for ‘Limited Scrutiny’ i.e. for only one issue i.e. whether stock has been valued correctly or not but AO expanding the jurisdiction to make addition u/s. 68 which was not specified in the ‘Limited Scrutiny’ notice issued u/s. 143(2) - HELD THAT:- Perusal of the order sheet does not indicate that the AO has taken the approval of the Pr. CIT/CIT for expanding the assessment from Limited Scrutiny to Complete Scrutiny. DR fairly conceded this fact after perusal of the order sheet that no approval in writing was taken by the AO for expanding the scope of assessment so as to make the addition u/s. 68 of the Act. Since the CBDT Circular issued u/s. 119 of the Act is binding on the department/AO as held by the Hon’ble Apex court and High Courts, the AO was bound by it and without taking approval in writing from Pr CIT/CIT could not have enquired into other issues other than the issue for which the assessment was selected for Limited Scrutiny. Here, the AO without following the procedure has expanded his jurisdiction without approval which action of AO is held to be without jurisdiction - Addition is null in the eyes of law and, therefore, it has to be deleted - Decided in favour of assessee.
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