TaxTMI 
TaxTMI 
2025 (6) TMI 954
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....mited scrutiny however, the scrutiny proceedings were conducted as if this was a complete unlimited scrutiny and therefore, the assessment was framed is invalid and may be quashed. 03. The facts in brief are that the assessee filed the return of income on 30.12.2014 declaring total income at Rs. 44,840/-. The case of the assessee was selected for limited scrutiny under Computer Assisted Scrutiny Selection (CASS) and accordingly, the statutory notices were duly issued along with questionnaire and served upon the assessee. The assessee is engaged in the business of trading of various cloth items. During the course of assessment proceedings, the ld. AO noted that the assessee company has purchased a plot admeasuring 3 kattah, 11 Chhataka 15 s....
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....ed that the very purpose of limited scrutiny is misplaced as the ld. AO has given a very comprehensive questionnaire calling upon the assessee to respond and reply the same as if it were a complete scrutiny. The ld. AR submitted that if at all the ld. AO on the basis of examination of evidences and details before him was of the opinion that the case of the assessee required thorough scrutiny and examination then he was required record satisfaction/opinion for the same and follow the procedure laid down under the Act to convert limited scrutiny into complete scrutiny and only then the assessment order could be framed accordingly failing which the assessment framed by the AO is bad in law and may kindly be quashed. In defense of his arguments....
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....acted below:- 08. Thereafter, we note that the notice u/s 142(1) of the Act dated 06.06.2016, issued along with questionnaire was issued to the assessee and served upon it, wherein the ld. AO called upon the assessee to respond to the said questionnaire containing 16 paras/ queries. For the sake of ready reference the notice u/s 142(1) of the Act and questionnaire is extracted below:- 09. On perusal of the above notice and questionnaire we observe that though the case of the assessee was selected for limited scrutiny, however, the questionnaire has been issued by the AO as if it were a complete scrutiny. In our opinion, the said action on the part of the ld. AO is not permissible under the Act as the ld. AO is not authorized to issue such....
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....d Scrutiny' into a 'Complete Scrutiny' case, the matter has been further examined and in partial modification to Para 3(d) of the earlier order dated 29.12.2015, Board hereby lays down that while proposing to take up 'Complete Scrutiny' in a case which was originally earmarked for 'Limited Scrutiny' the Assessing Officer ('AO') shall be required to form a reasonable view that there is possibility of under assessment of income if the case is not examined under 'Complete Scrutiny'. In this regard, the monetary limits and requirement of administrative approval from Pr. CIT/CIT/Pr. DIT/DIT, as prescribed in Para 3(d) of earlier Instruction dated 29.12.2015, shall continue to remain applicable. 3. Fu....