2023 (6) TMI 1345

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....3 arising out of the order passed U/s. 143(3) r.w.s 144B of the Act, dated 26/04/2021 for the AY 2018-19. 2. The facts of the case are that the assessee is a Fish Commission Agent and acts as a middleman between farmer and market person for which he receives commission. The assessee filed his return of income for the AY 2018-19 on 25/10/2018 admitting total income of Rs. 46,15,390/-. Subsequently, the case was selected for limited scrutiny for the purpose of verifying "cash deposits". A notice U/s. 143(2) of the Act and a detailed questionnaire through a notice U/s. 142(1) of the Act was issued and served on the assessee. In response, the assessee filed the required details before the Ld. AO. Considering the submissions made by the ....

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.... beyond the scope of limited scrutiny. 4. Without prejudice to Ground No. 2, and Ground No. 3, the Ld. CIT(A) is not justified in sustaining the addition of Rs. 84,80,669/- made by the Assessing Officer towards disallowance U/s. 40A(3) of the Act. 5. Any other grounds may be urged at the time of hearing." 4. Grounds No. 1 and 5 are general in nature and need no adjudication. 5. Ground No. 2 being a legal ground was not pressed by the Ld. AR. 6. With respect to Grounds No. 3 & 4 where a disallowance U/s. 40A(3) was made for Rs. 84,80,669/-, the Ld. AR argued that the Ld. AO has travelled beyond his powers in verifying the cash withdrawals where the case was selected under CASS for....

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....e cash deposits into the bank account of the assessee. There is no dispute by the Ld. AO regarding the satisfaction of the cash deposits for which the limited scrutiny purpose was initiated. As far as the limited scrutiny proceedings are concerned, the scrutiny has to be limited to the parameters selected for the purpose of scrutiny only to the specific issues and not beyond that under any circumstances. In case, if the Ld. AO wants to take up the case for complete scrutiny, first the Ld. AO has to convert the limited scrutiny into complete scrutiny case and then he may take up the case for complete scrutiny with the prior approval of the Ld. Pr. CIT / CIT concerned after being satisfied about the issue of converting it into a complete scru....