TaxTMI 
TaxTMI 
2022 (2) TMI 1298
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.... grounds of appeal in: "1. On the facts and in the circumstances of the case of the assessee Ld. Pr. CIT was not justified in holding that the assessment order passed under section 143(3) was erroneous and/or prejudicial to the interests of the revenue. 2. On the facts and in the circumstances of the case of the assessee ld. Pr. CIT was not justified in setting aside the order passed under section 143(3) by the assessing officer by invoking the provisions of section 263. 2. Brief facts of the case as culled out from the records are that the assessee is a partnership firm engaged in the business of civil contractor. Return of income for A.Y. 2015-16 filed on 30.09.2015 declaring income of Rs. 11,13,860/-. Case selected for limited scrut....
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....he outset, Ld. counsel for the assessee submitted that the case of the assessee was selected for limited scrutiny for verification of limited issues and the same were examined in detail by the ld. AO. The issue of verification of payment to contractors and application of provision of section 194C of the Act was not part of the limited scrutiny notice nor the case of the assessee was controverted into compulsory scrutiny and therefore there was no occasion for the Ld. AO to examine the issue of payment to contractors in light of provisions of section 194C of the Act. It was also stated by the Ld. counsel for the assessee it has been consistently held by Coordinate Benches of Hon'ble I.T.A.T., that if assessee's case is of limited scrutin....
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.... the limited scrutiny. Therefore, there was no occasion for the Ld. AO to examine this issue for payment to contractors. It is well settled that in case of limited scrutiny matter Ld. AO has to work within the parameters observed by the Central Board of Direct Taxes; instruction dated 29.12.2015 and various other circular issued in this behalf. Since the assessee's case was selected for limited scrutiny on certain issues and Ld. AO has examined these issues and framed the assessments and the issue of examination of payment to contractors was not a part of the limited scrutiny reasons, in our considered view, Ld. Pr. CIT erred in assuming jurisdiction u/s 263 of the Act and also erred in holding that assessment order is erroneous and prejudi....
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....cases, the assessing officer are also directed to confine themselves by questionnaire only to the specific issues pertaining to AIR data and further the wider scrutiny in those cases can only be conducted as per the guidelines and procedures stated in instruction number 7/2014. Therefore according to us when the learned assessing officer was not required to enquire on those issues such as purchases in cash more than specified sum, the learned CIT was not correct in holding that the learned assessing officer has not made due inquiries on that ground as the verification of the purchases exceeding specified limit in cash was not an issue before the assessing officer. Naturally, he should not have made any enquiry on that aspect. Even though th....