TMI Blog2015 (9) TMI 1649X X X X Extracts X X X X X X X X Extracts X X X X ..... on of 2010 has been passed in reconsideration of instruction dated 23.05.2007. Under such circumstances, the instruction of 2007 was operative on the date of issue of notice. The Ld. D.R. has not submitted any evidence on the file that the AO had taken the necessary approval of ACIT/JCIT for widening the scope of inquiry. The action of the AO in widening the scope of the inquiry without obtaining the necessary permissions as per the Board’s instruction was without jurisdiction and the same is accordingly set aside and consequently the additions made beyond the scope of AIR information are ordered to be deleted. The assessee’s appeal succeeds on technical/legal ground taken by the assessee vide revised ground of appeal. - ITA No.1611/M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of scrutiny without obtaining the permission of higher authorities as required by circular dated 8th September 2010 issued by CBDT as the case of appellant was selected for scrutiny under CASS. Further whether learned CIT(A) was justified in not adjudicating the said ground of appeal holding that the order passed by A.O. was without assuming valid jurisdiction and therefore bad in law. 3. The brief facts of the case are that the assessee is a partnership firm engaged in the profession of architecture and interior decoration. Return declaring total income of ₹ 12,13,640/- or e-filed by the assessee on 22.09.08. The return was processed under section 143(1) of the Act. Thereafter, the case was selected for scrutiny under CASS and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard the rival contentions and have also gone through the records. Before us, the Ld. A.R. of the assessee has stressed that as per the CBDT instruction No.225/26/2006 dated 23.05.2007, the scope of inquiry in assessment proceedings selected for scrutiny on the basis of AIR information is limited to the aspect of AIR information only. However, the AO is not debarred from the extending the scrutiny in areas other than mentioned in the AIR but subject to obtaining of written permission of Additional Commissioner in this respect. The Ld. A.R. has further stressed that the said instructions have been further reconsidered by the Board and vide F.No.225/26/2006-ITA-II(Pt.) dated 08.09.2010 and it has been decided that scrutiny of such case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of enquiry under CASS is defined by the Board in CBDT Circular F.No.225/26/2006-ITA-II(Pt.) dt. 23rd May,2007. This is extracted hereunder for ready reference: F.No.225/26/2006-ITA-II(Pt.) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, dt. 23rd May,2007 To: All Chief Commissioners of Income Tax All Directors General of Income Tax Sir/Madam, Sub: Selection of cases for scrutiny on the basis of data in AIR returns and subsequent assessment proceedings reg. Kindly refer to instructions issued from time to time regarding the procedure for selection of cases for scrutiny on the basis of data in AIR returns and the subsequent assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny of such cases would be limited only to the aspects of information received through AIR. However, a case may be taken up for wider scrutiny with the approval of the administrative Commissioner, where it is felt that apart from the AIR information there is a potential escapement of income more than ₹ 10 lacs. 3. It has also been decided that in all the cases which are picked up for scrutiny only on the basis of AIR information, the notice under Section 143(2) of the Income Tax Act, 1961 should clearly be stamped with AIR case. This should be immediately brought to the notice of all the officers working in your region. Yours faithfully, Sd/- (Ajay Goyal) 7. Admittedly, the necessary approval had not been taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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