TaxTMI 
TaxTMI 
2022 (12) TMI 1521
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.... 2. The assessee has taken the following grounds of appeal:- "1. The order passed by the Ld. CIT(A) is against the law, equity and justice. 2. The Ld.CIT(A) has erred in law & facts in upholding disallowance of commission of Rs. 6,36,492/- made by Ld. A.O. 3. The Ld.CIT(A) has erred in law & facts in upholding disallowance of purchases of Rs. 1,40,767/- made by Ld. A.O. invoking Sec. 40A (2)(b) of the Act. 4. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal." 3. The assessee has also taken the following additional Grounds of Appeal: "(1) The order passed by Ld AO is bad, illegal and without jurisdiction as the Ld AO has made addition....
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....e counsel for the assessee submitted that a perusal of the notice issued by the AO u/s 143(2) of the Act dated 28-07-2016 shows that the case was opened for "limited scrutiny" for examination of the following issues: i) interest expenses ii) payment to related persons mismatch 4.2 However, the assessment order was passed on a totally different basis as compared to the reasons enumerated in the notice issued under section 143(2) of the Act, without converting the case into "full scrutiny". The counsel for the assessee drew our attention to the assessment order and submitted that the first addition was made on account of disallowance of interest under section 14A of the Act, whereas in the notice referred to above, there ....
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.... assessment order does not go beyond the scope of issues mentioned in the notice under section 143(2) of the Act. The DR also argued that this issue was never raised before the Ld. CIT(Appeals) in appellate proceedings and neither any objection was raised before the AO and hence the assessee is precluded from taking up this issue for the first time in appellate proceedings. 6. We have heard the rival contentions and perused the material on record. In our considered view, the additional ground of appeal which is being pressed for the first time before us, is a purely legal issue and the assessee can be permitted to press any legal issue which goes to the root of the matter or challenge legality of the jurisdiction of the assessment itself....
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....dabad held that the entire issue should have been limited to the extent of the dispute raised in the notice under section 143(2) of the Act for the limited scrutiny but the AO in the present case has exceeded his jurisdiction. In the case of Chaitanya Bansibhai Nagori Vs Principal Commissioner of Income Tax (ITAT Ahmedabad) in ITA number 377/Ahd/2020, the Ahmedabad ITAT held that in limited scrutiny, AO cannot go beyond dispute raised in section 143(2) notice. In the case of Dharmin N. Thakkar v. ITO in ITA Number 1378/Ahmedabad/2019, Ahmedabad ITAT quashed the assessment order on the ground that the order was passed beyond the scope of limited scrutiny as there was no question the said notice for the limited scrutiny under section 143(2) o....