TaxTMI 
TaxTMI 
2023 (11) TMI 1319
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....sment order by ITO, National e-Assessment Centre, Delhi u/s. 143(3) read with sections 143(3A) & 143(3B) of the Act dated 10.03.2021 for AY 2018- 19. 2. Grounds raised by the assessee relate to assumption of jurisdiction by the Ld. Pr. CIT for invoking revisionary proceedings u/s. 263 of the Act and passing the impugned order thereon. The moot point in the present appeal is in respect of whether the Ld. Pr. CIT can revise the assessment framed by the Ld. AO u/s. 143(3) when the assessment itself was a limited scrutiny assessment and the issue on which limited scrutiny assessment was framed was not raised by the Ld. Pr. CIT for invoking the revisionary proceedings and that whether the Ld. Pr. CIT can deliberate on any other issue other th....
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....n taken into account while computing the total income in the year under consideration. He thus, drew a consideration that assessment order is erroneous in sofar as it is prejudicial to the interest of revenue and thus, it requires a revision. 3.3. A show cause notice dated 15.12.2022 was issued u/s. 263 against which the assessee furnished a detailed reply explaining its case. Ld. Pr. CIT has acknowledged the submissions made by the assessee on the issue raised by him in respect of receipts reported in Form 26AS. Despite this, he observed that the claim of the assessee requires verification since the assessment order was passed without making necessary enquiries or verification as to how the receipt has been accounted for and how the sam....
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...., limited scrutiny was in respect of business expenses whereas the show cause notice u/s. 263 was regarding reporting of certain receipts in Form 26AS, resulting in suppressed taxable income. According to Ld. Counsel, the unconnected issue in the show cause notice and the assessment order could not lead to hold the assessment as to being erroneous in so far as prejudicial to the interest of revenue when the Ld. AO could not have travelled beyond the issues forming subject matter of the limited scrutiny. 4.1. To buttress his contention, Ld. Counsel placed reliance on the decision of Hon'ble jurisdictional High Court of Calcutta in the case of PCIT Vs. Naga Dhunseri Group Ltd. in ITAT 186/2022 IA No. GA/2/2022 dated 18.11.2022 wherein it w....
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....No.7 of 2014, dated 26th September, 2014, the relevant portion of the said Instruction reads as follows :- "3. The reason(s) for selection of cases under CASS are displayed to the Assessing Officer in AST application and notice u/s. 143(2), after generation from AST, is issued to the taxpayer with the remark "Selected under Computer Aided Scrutiny Selection (CASS)". The functionality in AST is being modified suitably to flag the reasons for scrutiny selection in AIR/CIB/26AS cases. This functionality is expected to be operationalised by 15th October 2014. Further, the Assessing Officer while issuing notice under section 142(1) of the Act which is enclosed with the first questionnaire would proceed to verify only the specific aspect....
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....moto revisional power u/s. 263 of the Act to find fault with the assessment order of the Ld. AO on the ground of it being erroneous on an issue not covered by the limited scrutiny when the AO could not have possibly occassion to examine such issue. 5. Per contra, Ld. CIT, DR placed reliance on the order of Ld. Pr. CIT and submitted that no prejudice is caused to the assessee since the Ld. Pr. CIT has directed the Ld. AO to examine the issue and pass the assessment order accordingly. 6. We have heard the rival contentions and perused the material available on record. In the present facts of the case, we note that case of the assessee was selected for limited scrutiny assessment under the e-Assessment Scheme, 2019 on the sole issue of b....
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....al of the PCIT/CCIT concerned. The another condition put forth by the CBDT is that such approval thereof accorded by the PCIT in writing after being satisfied about imports of the issues necessitating complete scrutiny in that particular case. Further condition that such cases shall be monitored by the Range Head and procedure indicated in Sub-clauses (a) (b) (c) above no longer be remain pending in such cases, which means and reading together clause (b) and (d) itself clarified that in case, the limited scrutiny cases are picked up for scrutiny assessment, the AO shall remain confine to the only reasons / issues for which case has been picked up for scrutiny and the scope of enquiry be restricted to the limited scrutiny issues only. The ex....