TMI Blog2021 (5) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfilled in this case. AO has not referred to any credible or reliable material or information to form the view that there was a possibility of under assessment of income in this case. The AO has merely made certain disallowance on ad hoc basis without pointing out any information or material available to him which has a direct nexus to show that there was possibility of under assessment of income. Conversion of limited scrutiny into complete scrutiny is against the spirit of CBDT mandate which is binding on the AO. Therefore, the conversion of limited scrutiny into complete scrutiny being not valid, the consequential additions made by the AO on ad hoc basis and further confirmed by the CIT(A) are not sustainable in the eyes of law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45,176/- u/s. 40(a)(ia) on account of alleged non deduction of TDS on the expenses claimed even when the payments made to various parties were below the threshold limit for deducting TDS and the appellant was not compulsorily required to deduct TDS on the same. 4. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO in disallowing expenses of ₹ 11,11,174/- out of the total addition of ₹ 3,70,579/- u/s. 40(a)(ia) on account of alleged non deduction of TDS on the advertisement expenditure claimed by the appellant. 5. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO in making disallowance of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vertisement expenses 3,70,579/- iii. TDS Penalty 3,51,836/- iv. Donation 1,80,190/- v. Donation 6,000/- vi. Development Expenses 5,00,000/- TOTAL 29,53,781/ 3. The ld. counsel for the assessee has submitted that the AO did not have any reliable and cogent reason to convert the limited scrutiny assessment into full scrutiny assessment. That he has just made certain disallowances on ad hoc basis out of routine expenditure of the assessee as listed above. 4. The ld. counsel for the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o complete scrutiny, the Assessing Officer shall be required to form a reasonable view that there is a possibility of under statement of income and that view should be based on credible material or information available on record and such a view should not be based on mere suspicion, conjecture or unreliable resources and there should be a direct nexus between available material and formation of view. However, the above conditions are not fulfilled in this case. The AO has not referred to any credible or reliable material or information to form the view that there was a possibility of under assessment of income in this case. The AO has merely made certain disallowance on ad hoc basis without pointing out any information or material availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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