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2024 (1) TMI 1188 - ITAT RAIPURValidity of Reopening of assessment u/s 147 - receipt of interest income - HELD THAT:- Admittedly, it is a matter of fact borne from record that the A.O while framing assessment vide his order passed u/s. 143(3)/147 had not made any addition qua the very reason for which the case of the assessee company was reopened u/s. 147. We find substance in the claim of the AR that in absence of any addition having been made by the A.O as regards the very reason based on which the case of the assessee company was reopened u/s. 147 then no valid jurisdiction could have there been assumed by him to frame assessment u/s. 147 of the Act. Our aforesaid view is fortified by the judgement of Jet Airways (I) Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY]. At this stage, we may herein observe that the judgment of the Hon’ble High Court of Bombay in the case of CIT Vs. Jet Airways (I) Ltd. (supra) had been followed in case MAJOR DEEPAK MEHTA [2011 (11) TMI 462 - CHATTISGARH HIGH COURT] Considering the fact that the A.O in the present case before us, had wrongly assumed jurisdiction and made the impugned additions vide his order passed u/s. 143(3)/147 we herein quash the same. Decided in favour of assessee. Validity of scrutiny assessments - converting the “limited scrutiny” into “complete scrutiny” - additions on items not covered under scope of limited scrutiny - HELD THAT:- As is discernible from the assessment order the case of the assessee company was selected for “limited scrutiny” for the following reason: “(i) Large share premium received during the year (verify applicability of Section 56(2)(viib)” Admittedly, it is a matter of fact borne from record which has not been rebutted by the Ld. DR that the A.O at no stage of the assessment proceedings had obtained approval of the Pr. CIT for converting the “limited scrutiny” into “complete scrutiny” as provided by the CBDT Circular No. 20/2015 [F. No.225/269/2015-ITA-II], dated 29.12.2015. Considering we find, that as stated by the AR, and rightly so, the scope of jurisdiction of the A.O while framing the “limited scrutiny” was circumscribed by the very purpose/reason, for which, the case of the assessee company was selected for scrutiny assessment. Accordingly, we find substance in the claim of the AR that the A.O had clearly exceeded his jurisdiction by making disallowances/additions which never formed the basis for selection of the case of the assessee company for “limited scrutiny”. Our aforesaid view is fortified by the order of the Co-ordinate Bench of the Tribunal, Raipur in the case of Aryadeep Complex (P) Ltd [2022 (8) TMI 383 - ITAT RAIPUR]. Considering the fact that the A.O in the present case before us, had wrongly assumed jurisdiction and made the impugned additions/disallowances vide his order passed u/s. 143(3) we herein vacate the same. Decided in favour of assessee.
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