2023 (5) TMI 418

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....Das De, Adv. ... For the Respondent. : 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 re....

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....the case for limited scrutiny was to verify the introduction 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 t....

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....eported in audit report and ITR. If that is the undisputed factual 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 ....

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....ngs are completed expeditiously in minimum possible number of hearings 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 learne....