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TMI Blog2022 (6) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year 2015-16. 2. The Ass essee has raised following grounds of appeal: 1. The learned CIT(A) has erred in law and on facts in confirming the action of AO of making an addition ofRs.5,98,200/-u/s.69A r.w.s. 115BBE of the Act. 2. The learned CIT(A) has erred in law and on facts in confirming the action of AO of making an addition and not limiting the income of the appellant to presumptive income of Rs.2,45,200/- as mandated u/s.44AD of the Act. 3. Both the lower authorities have erred in stepping into the shoes of the appellant and holding that profit of the appellant at 50.90% of the turnover is on the higher side especially when S.44AD of the Act does not prescribe an upper limit. 4. Both the lower authorities have passed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act for examining the issue whether the cash deposit in the bank has been made from disclosed sources. There was deposit of cash in the bank account of the assessee amounting to Rs. 12,13,500.00 i.e. Punjab National Bank. However, the AO made the addition of Rs. 5,98,200.00 being the amount shown as cash in hand as on 31-3-2015, treating the same as income of the assessee from undisclosed sources. 5. Aggrieved, assessee preferred an appeal before the learned CIT (A) who confirmed the order of the AO. 6. Being aggrieved by the order of the Ld. CIT(A) the assessee is in appeal before us. 7. The Ld.AR before us filed a paper books running from pages 1 to 79 and drew our attention on page 8 of the paper book where the notice for "Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y'. The assessees concerned have duly been intimated about their cases falling either in 'Limited scrutiny' or 'Complete Scrutiny' through notices issued under section 143(2) of the Income-tax Act, 1961 ('Act'). The procedure for handling 'Limited Scrutiny' cases shall be as under: a. In 'Limited Scrutiny' cases, the reasons/issues shall be forthwith communicated to the assessee concerned. b. The Questionnaire under section 142(1) of the Act in 'Limited Scrutiny' cases shall remain confined only to the specific reasons/issues for which case has been picked up for scrutiny. Further, the scope of enquiry shall be restricted to the 'Limited Scrutiny' issues? " c. These cases shall be comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T/CIT/Pr. DIT/DIT, as prescribed in Para ?(d) of earlier Instruction dated 29.12.2015, shall continue to remain applicable. 3. Further, while forming the reasonable view, the Assessing Officer would ensure that: a. there exists credible material or information available on record for forming such view; b. this reasonable view should not be based on mere suspicion, conjecture or unreliable source; and c. there must be a direct nexus between the available material and formation of such view." 9.1 However, on perusal of the notice for "Limited Scrutiny" we find that there was no mentioning/whisper about examination of the cash in hand. As such, the case was selected on account of deposit of cash in the bank but the closing cash in han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so we draw support and guidance from the order of the Hon'ble Chandigarh Tribunal in case of Rajesh Jain vs. ITO reported in 162 taxman 212 where it was held as under: The jurisdiction of the Assessing Officer in such cases where the notices are issued for limited scrutiny is confined to the claims he has set out in the notice for verification. This position of law was further elaborated by the CBDT in its Circular No. 8/2002, dated 27-8-2002. The CBDT Circular clarifies that the Assessing Officer does not have the powers to make the entire assessment of income in limited scrutiny cases. Now question had to be decided when the Assessing Officer does not have the powers while making limited scrutiny assessment to decide such issues which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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