TaxTMI 
TaxTMI 
2025 (6) TMI 954
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....ection (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 sq. ft. i.e. 2670 sq.ft on P-65, CIT Scheme, PS. Phoolbagan, Scheme No. VI-M, Kolkata-700054. The said property was purchased at 38 lacs, whereas the stamp authority valuation was Rs. 1,19,39,631/-. Accordingly, the assessee was called upon to explain the same . The assessee submitted that the Provisions of Section 56(2) are not applicable to the private limited companies and since, the assessee is a private limited company the said section is applicable with effect from 1st October, 2009 for individually and HUF only. The ld. AO by rejecting the contention of the assessee treated the difference between the purchase price and stamp authority valuation of Rs. 81,31,691/- as undisclosed income and added the same to the income of the assessee by framing the assessment u/s 143(3) vide order dated 30.12.2016. 04. In the appellate proceedings, t....
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....3(2) of the Act or in the assessment order itself. The ld. DR therefore, prayed that the argument of the counsel of the assessee that the AO has to covert the limited scrutiny into complete scrutiny is devoid of any merit and may kindly be dismissed. 07. After hearing the rival contentions and perusing the materials available on record, we find that in this case the assessee is selected for limited scrutiny as is apparent from the notice issued u/s 143(2) of the Act dated 04.09.2015, which is extracted 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 ....
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....that: a. there exists credible material or information available on record for forming such view; b. this reasonable view should not be based on mere suspicion, conjecture or unreliable source; and c. there must be a direct nexus between the available material and formation of such view. 4. It is further clarified that in cases under 'Limited Scrutiny' the scrutiny assessment proceedings would initially be confined only to issues under 'Limited Scrutiny' and questionnaires, enquiry, investigation etc. would be restricted to such issues. Only upon conversion of case to 'Complete Scrutiny' after following the procedure outlined above, the AO may examine the additional issues besides the issue(s) involved in 'Limited Scrutiny'. The AO shall also expeditiously intimate the taxpayer concerned regarding conducting 'Complete Scrutiny' in such cases. 010. In our opinion, the order framed by the ld. AO is not-sustainable in the eyes of law for the aforesaid reasons. We accordingly, following the judicial pronouncements as relied by the ld. AR quash the assessment framed by the Assessing Officer. 011. In the re....
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....fied-in-the-prescribed-manner-information-called.for as-per-annexures-and-on-the-points-or-matters-specified-therein-before-me-at-my-office -A.M/P.M. Yours faithfully ASSESSING OFFICER Name - Harckrushna Dash Designation - I.T.O.Ward-9(4), KOLKA 1 - N(SEAL) MAREKALIGHNA DASH · · urte putitems not apps hie Document 3 PAN/GIR : AAHCS1070Q A.Y. 2014-15 Details of documents / accounts to be produced 1 A write up regarding business activity of the company with complete address of its operation for the F.Y. 2013-14 relevant to A.Y. 2014-15. 2 Original signed copy of the annual audited accounts with its annexure, schedules, director's Report and auditor's report for the period relevant to F.Y. 2013-14. 4. Original signed copy the tax audit report with its annexure /enclosure / schedules for the relevant period. 5 Audit Report u/s 115JB of the Act to F.Y.2013-14 relevant to A.Y. 2014-15 6. Computation of Income Sheet pertaining to F.Y.2013-14 relevant to A.Y. 2014-15 7. Copy of last three assessment orders passed u/s 143(3) of the Act. 8. Gross Profit and Net profit ratios for the last four Financial years along with those that of the ....