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Capital reduction is distinct from share buy-back, preventing buy-back tax; restructuring interest and related business deductions also survive scruti...
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Captive transfer pricing relies on industrial consumer tariffs, while genuine quotations can benchmark effluent treatment transfers under the Other Me...
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The case involved the scope of limited scrutiny and the validity of a notice u/s 143(2) of the Income Tax Act. The assessee's case was selected for limited scrutiny to verify cash deposits during demonetization. However, the Assessing Officer (AO) attempted to convert the limited scrutiny into a full scrutiny. The Tribunal held that although the notice mentioned limited scrutiny, the subsequent paragraphs referred to scrutiny without specifying its limited nature. The AO identified the issue for examination as cash deposits during demonetization, indicating a limited purpose. To enlarge the scope and make other additions, the AO should have followed the procedure laid down by the CBDT's Instruction No. 5. Since the AO did not make any addition regarding cash deposits during demonetization and the assessee had deposited small accepted amounts, the assessment order was quashed for exceeding the AO's limited powers. The appeal was allowed, and the Tribunal emphasized the need to follow due procedure for converting a limited scrutiny into a full scrutiny.
The case involved the scope of limited scrutiny and the validity of a notice u/s 143(2) of the Income Tax Act. The assessee's case was selected for limited scrutiny to verify cash deposits during demonetization. However, the Assessing Officer (AO) attempted to convert the limited scrutiny into a full scrutiny. The Tribunal held that although the notice mentioned limited scrutiny, the subsequent paragraphs referred to scrutiny without specifying its limited nature. The AO identified the issue for examination as cash deposits during demonetization, indicating a limited purpose. To enlarge the scope and make other additions, the AO should have followed the procedure laid down by the CBDT's Instruction No. 5. Since the AO did not make any addition regarding cash deposits during demonetization and the assessee had deposited small accepted amounts, the assessment order was quashed for exceeding the AO's limited powers. The appeal was allowed, and the Tribunal emphasized the need to follow due procedure for converting a limited scrutiny into a full scrutiny.
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