Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration de...
Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
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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