TMI Blog2020 (1) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... be a basis for the AO to seek approval of CIT/PCIT . On this aspect, argument was made before the learned CIT(A) also but in para 5 of his order, he has not decided this aspect. He has simply stated in this para that submission was made before him on the technical issue and the case was selected for scrutiny assessment under the CASS system of selection limited type and no prior approval was taken from the higher authorities, have been considered and found that the AO has rightly examined as to whether the cash deposit has been made from disclosed sources and whether cash in hand shown in the return of income is correct for which purpose the case was selected for scrutiny. But after observing so, he has not given any finding as to how ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act that was made in course of the limited scrutiny assessment by travelling outside the scope of the limited scrutiny proceedings without obtaining the permission of the Commissioner of Income tax and consequently the addition so made deserves to be deleted. 5. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest u/s.234-A and 234B of the Act, which under the facts and in the circumstances of the appellant's case and the levy deserves to be cancelled. 6. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtaining the approval of concerned CIT. Learned DR of the Revenue supported the orders of authorities below 4. I have considered the rival submissions. First of all, I produce para No.2 of the Assessment Order in which the AO has noted the reasons for selecting the case of the assessee for limited scrutiny. This para reads as under: 2. Present case was selected for limited scrutiny with respect to the following reasons- 1. Whether the cash deposit has been made from disclosed sources 2. Whether cash in hand shown in the return of Income is correct (Cash deposit for demonetization period (9th November to 30th December) reported as per SFT reporting. 5. From the above para reproduced from the Assessment Order, it comes out th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book, there are 18 items of expenses but it does not include depreciation. In fact, depreciation is covered under item no. 45 on page no 106 of paper book and not in item no. 39 available on page no.105 of paper book. Hence, in my considered opinion, in the present case, examination of depreciation is not covered in the two issues selected for examination for limited scrutiny. This is not the case of the revenue that the approval was taken by the AO from CIT/Pr. CIT for converting the scrutiny from limited scrutiny case to total scrutiny case. Hence, in my considered opinion, the AO is not justified in taking up the examination of depreciation claimed which is beyond the issues selected for limited ' scrutiny without obtaining prior app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lected for scrutiny assessment under the CASS system of selection limited type and no prior approval was taken from the higher authorities, have been considered and found that the AO has rightly examined as to whether the cash deposit has been made from disclosed sources and whether cash in hand shown in the return of income is correct for which purpose the case was selected for scrutiny. But after observing so, he has not given any finding as to how the other addition made by the AO under section 43B of the IT Act, 1961 is justified under these facts. Respectfully following this Tribunal order cited by the learned AR of the assessee, I delete the disallowance made by the AO. 7. In the result, the assessee s appeal is allowed. Prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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