2017 (9) TMI 581

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....staining the assessment order passed u/s. 143(3) dated 31.12.2012, when the same has been passed in contravention of the Board instruction F. No.225/127/2011/ITA-II dated 02.09.2011 and as such the same may please be deleted. 2. For that the case has been selected for scrutiny manually, without recording any reasons in the file of the assessee as per prevailing CBDT instruction on manual selection and as such the order passed u/s 143(3) is not legal and the same may please be quashed. 3. For that the Ld. CIT(A) was not justified in refusing to give cognizance to the written arguments filed by the appellant in course of hearing, and the case selected and approved by the CIT, in contravention of the CBDT instruction is void, and may ple....

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....anually. The AO sought the ld. CIT's for approval for this manual selection. Ld. CIT vide his order dated 26.09.2011 granted approves for selection of 24 cases for scrutiny by the Assessing Officer. Approval was denied in one case only. The assessee has at page 5 of its paper book enclosed a photo copy of reasons recorded by the Assessing Officer in his proposal for selection of the assessee's case for scrutiny for the AY 2010-11. This reads as follows:- "net profit appears to be low which needs verification with regard to the expenses claimed by the assessee insured loan of Rs.79,07,960 and sundry creditors for Rs.3,255/- are to be verified." In our view, no fault can be found in the reasons recorded by the Assessing Officer for sele....

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....s of Rs. 10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before on appellate authority. c) Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs. 10 lakh or more. d) Assessment in survey cases for the financial year in which survey was carried out. This criteria will not apply if all of the following conditions are fulfilled: i. There are no impounded books of documents. ii. There is no retraction of disclosure, if any, made during the survey. iii. Declared income excluding any disclosure made during the survey, is not less than the declared income of thee preceding year. e) Assessment in search & Seizure cases to be....

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....nication cannot be equated with the requirements specified under the statute in Section 151(1) of the Act. Section 151(1) and 151(2) of the Act require the Commissioner of Income Tax to record satisfaction, as compared to, mere approval in the case of Board's circular. 7. The reliance placed by the assessee on the decision of Kolkata "B" Bench of this Tribunal in the case of Ajanta Financial Services Pvt. Ltd. vs. ITO in ITA No. 1426/Kol/2011 dated 21.05.2012 for the AY 2003-04 is not applicable as in that case, the criteria laid down for selection of case for scrutiny was not valid. Nowhere in this decision, it has been laid down that the Ld. CIT(A) while granting approval has to give details reasons. Similarly, the judgment in the case....