TaxTMI 
TaxTMI 
2023 (5) TMI 418
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....ent. : Mr. Asim Choudhury, Adv. Mr. Soham Sen, Adv.. ... ORDER The Court : This appeal by the revenue filed under Section 260A of the Income Tax, 1961 (the Act, for brevity) is directed against the order dated 27th January, 2021 passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata in ITA No. 370/Kol/2020 for the assessment year 2015-16. The revenue has raised the following substanti....
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....n of capital in NBFC/Investment Companies which is connected with the issue of disallowance under section 14A of the Income Tax Act, 1961 ?" We have heard Ms. Smita Das De, learned standing counsel appearing for the appellant/revenue and Mr. Asim Choudhury, learned counsel for the respondent/assessee. The short question involved in this case is whether the assumption of jurisdiction by the Prin....
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....ctual position, we find the reasoning given by the learned Tribunal is fully justified. That apart, the learned Tribunal has rightly pointed out that the CBDT has issued instructions as to the manner in which the limited scrutiny should be carried out. In CBDT Instruction No.7 of 2014, dated 26th September, 2014, the relevant portion of the said Instruction reads as follows :- "3. The reason(s) ....
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....without unnecessarily dragging the case till the time-barring date." A bare reading of the of the above Instruction clearly shows that the PCIT cannot make a roving enquiry in the guise of a limited scrutiny and as such the instruction issued by the CBDT is binding on the Department. Thus, we find that on facts the learned Tribunal has granted relief in favour of the assessee. The learned coun....