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TMI Blog2020 (1) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... es, facts and circumstances of the case. 2. The learned CIT[A] is not justified in sustaining the addition of Rs. 11,58,407/- made in respect of VAT payable shown as a liability in the Balance Sheet invoking the provisions of section 43B of the Act, under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] failed to appreciate the fact that the VAT payable added back to the total income was not debited as an expenditure in the Profit & Loss account and consequently, there could not be any disallowance of the expenses in terms of section 43B of the Act under the facts and in the circumstances of the appellant's case. 4. The learned CIT[A] ought not to have upheld the disallowance made u/s. 43B of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 25.04.2019. He submitted a copy of this Tribunal order and drew my attention to para Nos.7 and 8 of this Tribunal order. He also submitted that in para No.8 of the Assessment Order, the AO has stated that the assessee, during the course of assessment proceedings submitted a letter dated 22.12.2017 in which the assessee voluntarily offered an amount of Rs. 11,58,407/- which was VAT liability not discharged during Assessment Year 2015-16. He submitted that even if the assessee has offered this amount in the course of assessment proceedings voluntarily, addition cannot be made by the AO in a limited scrutiny case by travelling outside the scope of limited scrutiny which is noted by the AO in para No.2 of Assessment Order and without obtaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, it can be wide open to examine issues other than issues raised for the limited scrutiny purpose. But thereafter, the Id. CIT(A) has gone back and she says that AO has examined the entire expenses claimed / debited to profit and loss account as per the requirement of limited scrutiny and proved that the appellant wrongly claimed depreciation @ 30%. We have already seen that as per the limited scrutiny notice appearing on page no. 47 of paper book, only two issues have been identified for examination and these are as under:- i) Payment to related persons mismatch ii) Other expenses claimed in the Profit & Loss a/c 8. It is also seen that as per the details of other expenses, available on page no. 105 of the paper book, there are 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited scrutiny. Under these facts, in my considered opinion, even if some other issue comes to the notice of the AO, he cannot make any other addition / disallowance without obtaining prior approval from concerned CIT/Pr. CIT. I also feel that in the absence of such approval from the CIT/PCIT, even the voluntary offer of the assessee also cannot give the AO jurisdiction to make any other addition although such offer by the assessee can 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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