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2024 (11) TMI 970 - AT - Income TaxScope of limited Scrutiny - Validity of Notice u/s 143(2) - case of the assessee was selected for limited scrutiny i.e. for verifying the cash deposits during demonetization - DR concluded that notice would indicate that the case was selected for scrutiny assessment thus tried converting the limited scrutiny to a full scrutiny HELD THAT - Though in the heading it exhibits limited scrutiny (Computer Aided Scrutiny Selection) but thereafter in the first paragraph it only talks of scrutiny and then in second paragraph it talks upon the opportunity being provided to the assessee what he wants to say in support of the return. It is pertinent to observe that in para one the ld. AO has to identify the issues for examination. If this proforma is being read with the first paragraph of the assessment order then it would reveal that in the third line of the first paragraph ld. AO has used the expression this return was selected for scrutiny in CASH on the issue of cash deposits during demonetization period . It would indicate that the case was selected for scrutiny but for the issue of cash deposit during demonetization this mention of the issue would indicate that it was for a limited purpose of scrutinizing the cash deposits during demonetization. Its scope for making other additions would only be enlarged by following due procedure laid down by the CBDT vide its Instruction No. 5 AO has not made any addition of cash deposit during demonetization period. The assessee has deposited small amounts which have been accepted by the ld. Assessing Officer. Therefore the assessment order itself is not sustainable because it has been passed by the AO by exceeding his limited powers. The ld. Assessing Officer ought to have followed the procedure contemplated in CBDT Instruction bearing No. 5 of 2016 for converting a limited scrutiny assessment into a full scrutiny. Accordingly we quash the assessment order. Appeal of the assessee is allowed.
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