2024 (11) TMI 962

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...., which is extracted below: "That the order of assessment dated 19.12.2019 is in excess of jurisdiction vested in the ld. AO as per the F. No. 225/157/2017/ITA-II of CBDT in relation to Limited Scrutiny (Computer Aided Scrutiny Selection) which was for the Limited issue of "Large Cash Deposits in Bank account(s) during the year", whereas all additions are on the issues other than the Limited Scrutiny Selection". 3. Ld. Counsel for the assessee, at the very outset, submitted that the issue raised in the additional ground of appeal is legal issue and is arising out of records available on the assessment folder and, therefore, no further verification of facts is required to be done. The ld. A.R., therefore, submitted that the issue may kind....

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....8 stating therein that the case has been selected for limited scrutiny for examination of cash deposited in the Bank accounts during the financial year. Accordingly, the ld. Assessing Officer called for various documents/information and explanation from the assessee during the course of assessment proceedings, which were not complied with by the assessee and finally the assessment was framed by making two additions, one of Rs. 1,02,17,061/- which was on account of peak credit of unexplained deposits of two bank accounts, namely one in Canara Bank bearing A/c. No. 14254 and second in ICICI Bank bearing Account No. 19877. The second addition of Rs. 34,43,814/- was made on account of under-reported income, which was noted by the ld. Assessing ....

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....Officer framed the assessment under section 144 of the Act vide order dated 19.12.2019 making two additions as stated above. Therefore, it is abundantly clear that the additions made by the ld. Assessing Officer were not in respect of the issue, which was the subject matter of the limited scrutiny as is apparent from the notice issued under section 143(2) of the Act dated 10.08.2018 and the ld. Assessing Officer passed the assessment order by making the above said additions without converting the limited scrutiny into complete scrutiny in terms of Circular issued by CBDT bearing No. 3/2017 dated 21.02.2019. In our opinion, the said additions made by the ld. Assessing Officer are without jurisdiction and cannot be sustained. The assessee fin....