https://www.taxtmi.com/caselaws?id=447433 The ITAT Delhi held that the AO exceeded the scope of limited scrutiny by making additions under section 68 for unsecured loans and unaccounted expenditure, when the case was selected only for verifying large interest expenses related to exempt income under section 14A and high interest expenses compared to business turnover. The tribunal ruled that while AOs can widen scrutiny scope, they must obtain prior approval from PCIT and record satisfaction about merits necessitating complete scrutiny. Since no such approval was obtained and CBDT circulars were disregarded, the assessment order was set aside and additions deleted in favor of the assessee. en-us Thu, 21 Dec 2023 00:00:00 +0530 Mon, 25 Dec 2023 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447433 The ITAT Delhi held that the AO exceeded the scope of limited scrutiny by making additions under section 68 for unsecured loans and unaccounted expenditure, when the case was selected only for verifying large interest expenses related to exempt income under section 14A and high interest expenses compared to business turnover. The tribunal ruled that while AOs can widen scrutiny scope, they must obtain prior approval from PCIT and record satisfaction about merits necessitating complete scrutiny. Since no such approval was obtained and CBDT circulars were disregarded, the assessment order was set aside and additions deleted in favor of the assessee. Case-Laws Income Tax Thu, 21 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447433