TMI Blog2019 (12) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... t converting the limited scrutiny to comprehensive scrutiny by taking the prior approval of the competent authority then the said order passed by the A.O. will be nullity as beyond his jurisdiction. AO neither in the assessment order nor in the assessment proceedings sheet has mentioned about any proposal of converting the limited scrutiny to comprehensive scrutiny and consequential approval of the Competent Authority being Principal CIT/DIT. Assessee has produced the certified copy of the assessment proceedings sheet which does not contain any such proposal of the AO for expanding the limited scrutiny to complete scrutiny. Further, the revenue has also not produced anything to show that the AO has obtained the necessary approval from the Competent Authority for conversion of the limited scrutiny to comprehensive scrutiny. Accordingly, the issue which is taken up by the AO in the proceedings under section 154 is illegal and void being beyond his jurisdiction to frame the limited scrutiny assessment. Accordingly, we set aside and quash the order passed by the AO under section 154 of the Act. Since we have quashed the order passed by the AO under section 154 of the Act for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed and set aside. 2. We have heard the ld counsel of the assessee as well as the ld DR and considered the relevant material on record for admission of the additional ground. The ld counsel of the assessee has submitted that the additional ground raised by the assessee is purely legal in character and goes to the root of the matter and therefore, the same may be admitted for adjudication on merits. In support of his contention, he has relied upon the judgment of the Hon ble Supreme Court in the case of NTPC Vs CIT (1998) 229 ITR 383 (SC). 3. On the other hand, the ld DR has objected to the admission of the additional ground and submitted that the assessee has not raised such objection either before the A.O. or before the ld. CIT(A). 4. Having considered the rival submissions and carefully perusal of the record we note that the assessee has not raised this issue of validity of the addition made by the A.O. on the issue of long term capital gain and particularly fair market value as on 01/4/1981 on the ground of jurisdiction of the A.O. beyond the Limited Scrutiny. The assessee has questioned the validity of the assessment of long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der: Specific queries raised, for which information to be furnished: Your ITR has been selected for LIMITED scrutiny under CASS for the following reasons: 1 Large deduction claimed u/s 54B, 54C, 54D, 54G, 54GA 2 Large value sale of consideration of property in ITR is less than sale consideration of property reported in TDS return under section 194IA 3 Large cash deposits in savings bank account and assessee has also transferred one or more property(ies) during the year. Thus, the A.O. raised specific queries under limited scrutiny in respect of three points. There was no query raised about the fair market value of the property in question as on 01/04/1981, therefore, the said issue cannot be treated as part of the limited scrutiny under CASS when none of the queries raised under the scrutiny relating to the computation of the capital gain but all are regarding deduction claimed under Chapter IV and pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of scrutiny assessments and to bring further clarity on some of the issues emerging from the aforesaid Instruction, following clarifications are being made: i. Year of applicability: As stated in the Instruction No.7/2014, the said Instruction is applicable only in respect of the cases selected for scrutiny through CASS-2014. ii. Whether the said Instruction is applicable to all cases selected under CASS: The said Instruction is applicable where the case is selected for scrutiny under CASS only on the parameter(s) of AIR/CIB/26AS data. If a case has been selected under CASS for any other reason(s)/parameter(s) besides the AIR/CIB/26AS data, then the said Instruction would not apply. iii. Scope of Enquiry: Specific issue based enquiry is to be conducted only in those scrutiny cases which have been selected on the parameter(s) of AIR/CIB/26AS data. In such cases, the Assessing Officer, shall also confine the Questionnaire only to the specific issues pertaining to AIR/CIB/26AS data. Wider scrutiny in these cases can only be conducted as per the guidelines and procedures stated in Instruction No. 7/2014. iv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions/disallowances in accordance with the principle of natural justice. In this regard, the Assessing Officer shall issue an appropriate show-cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/reasons forming the basis of the same. Before passing the final order against the proposed additions/disallowances, due consideration shall be given to the submissions made by the assessee in response to the show-cause notice. 5. The contents of this Instruction should be immediately brought to the notice of all concerned for strict compliance. 6. Hindi version to follow. Sd/- (Ankita Pandey) Under Secretary to Government of India 14. With Instruction 7 of 2014, the Board has made it specifically clear that the scope of enquiry should be limited to verification of the particular aspects only. It has also been directed that an approval is required from the PCIT/DIT, in writing, after being specific about the merits of the other issues for comprehensive scrutiny. 15. The said instruction reads as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after genera ion from AST, is issued to the taxpayer with the remark 'Selected under Computer Aided Scrutiny Selection (CASS) . The functionality in AST is being modified suitably to flag the reasons for scrutiny selection in AIR/CIB/26AS cases. This functionality is expected to be operationalised by 15th October, 2014. Further, the Assessing Officer while issuing notice under section 142(1) of the Act which is enclosed with the first questionnaire would proceed to verify only the specific aspects requiring examination/verification. In such cases, all efforts would be mad to ensure that assessment proceedings are completed expeditiously in minimum possible number of hearings without unnecessarily dragging the case till the time-baring date. 4. In case, during the course of assessment proceedings it is found that there is potential escapement of income exceeding ₹ 10 lakhs (f non -metro charges, the monetary limit shall be ₹ 5 lakhs) on any other issue(s) apart from the AIR/CIB/26AS information based on 14 which the case was elected under CASS requiring substantial verification, the case may be taken u for comprehensive scrutiny with the approval o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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