TMI Blog2005 (4) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... have the power to make full-fledged assessment in limited scrutiny cases, in my considered view, the CIT(A)'s power cannot be enlarged beyond the power of the Assessing Officer in limited scrutiny cases. Since the notice u/s 143(2)(i) was issued for limited scrutiny, the Assessing Officer is precluded from considering any other issue while making the assessment u/s 13(3) under limited scrutiny. The decision of the CIT(A) in considering the other claim of the assessee not covered in the notice issued u/s 143(2)(i) for limited scrutiny is contrary to the provisions of the Act and accordingly is set aside. The Assessing Officer shall consider the allowability of the claim of depreciation in respect of the plinth aggregating amount in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. The Assessing Officer completed the assessment on 28-2-2005. The claim of depreciation of ₹ 73,700 made by the assessee in respect of the plinth and furniture etc. was disallowed by the Assessing Officer. The total income was computed by the Assessing Officer at ₹ 1.51.280. 3. The assessee appealed to the Commissioner of Income-tax (Appeals) challenging the disallowance of depreciation etc. The Commissioner of Income-tax (Appeals) issued enhancement notice to the assessee and vide impugned order held that the income from letting out of plinth should be assessed under the head income from other sources . Relying upon the decision of the Madhya Pradesh High Court in the case of Babulal Aggarwal v. CIT [2005] 186 Taxation 303 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board has expressed the following opinion :- 59.1 Under the existing procedure of assessment laid down in section 143 of the Income-tax Act, the Assessing Officer if he considers it necessary or expedient issues a notice under sub-section (2) of section 143 of the Income-tax Act, requiring the assessee to produce any evidence which he may rely on in support of the return. Sub-section (3) provides that after hearing such evidence and after taking into account all relevant material which he has gathered, the Assessing Officer shall pass an order of assessment determining the total income or loss, and the sum payable or refundable to the assessee. 59.2 Since a minuscule percentage of returns filed are taken up for scrutiny under the existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. The Commissioner of Income-tax (Appeals) has further made disallowance of expenses which were earlier allowed by the Assessing Officer. The question before me is as to whether in a case where a notice under section 143(2)(ii) has been issued by the Assessing Officer for limited scrutiny, the Assessing Officer has the power to make the entire assessment considering the other claims and deductions not specified in the notice issued under section 143(2)(i). In my considered view; the CBDT Circular referred to above clarifies the stand of the Revenue to the effect that the Assessing Officer does not have the powers to make the entire assessment of income in limited scrutiny cases. The next question that assumes importance is as to when the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be appropriate if the copy of the decision of Punjab Haryana High Court is made available to the parties and after giving reasonable opportunity of being heard to the assessee the Assessing Officer shall decide the claim of depreciation afresh in accordance with law. Since the notice under section 143(2)(i) was issued for limited scrutiny, the Assessing Officer is precluded from considering any other issue while making the assessment under section 13(3) under limited scrutiny. The decision of the Commissioner of Income-tax (Appeals) in considering the other claim of the assessee not covered in the notice issued under section 143(2)(i) for limited scrutiny is contrary to the provisions of the Act and accordingly is set aside. The Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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