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2024 (2) TMI 154 - ITAT RAIPURScrutiny assessment - Validity of assessment framed u/s 143(3) - Whether AO have examined the issues beyond his jurisdiction as conferred upon him under the limited scrutiny ? - HELD THAT:- Admittedly the notice u/s 143(2) was issued for initiating the scrutiny assessment u/s limited scrutiny category to examine the issue regarding contract receipts / fees have been correctly offered for Tax or not. AO while examining the issue has examined all the receipts as emanating from Form 26AS of the assessee where the TDS have been deducted u/s 194C - AO further issued the questionnaire to the assessee and accordingly have come to know that the assessee have shown business income u/s 44AD and 44AE. Since the AO have come to know about the nature of the income of the assessee only after submissions of the assessee, therefore, it cannot be said that the Ld. AO have examined the issues beyond his jurisdiction as conferred upon him under the limited scrutiny mandate. Under such facts and circumstances ground no. 1 of the assessee is dismissed. Undisclosed profit from contract work and transport income - HELD THAT:- The assumptions made by Ld. AO are without any basis, on the contrary the basis adopted by the Ld. AO was itself conflicting at places when the percentage of profit was calculated on the basis of turnover in 26AS, but have presumed that the turnover shown in 26AS was not considered by the assessee in the returned income, Ld. AO also presumed that the deemed profit u/s 44AE was not included in the profit shown by the assessee in ITR was again on the basis of presumption without any concrete evidence. Thus having no further information or decision contradicting the submissions and contentions of the Ld. AR, we find no basis to approve both the additions made by the Ld. AO, thus, we direct to delete the same. In result ground no. 2 & 3 of the assessee’s appeal are allowed.
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