TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 1508
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.... 3. Reliance was placed on the decision of the Hon'ble Supreme Court in the case of National Thermal Power Corporation Limited Vs. CIT (229 ITR 383) and Jute Corporation of India Limited Vs. CIT (187 ITR 688). 4. On the other hand, the Ld. DR opposed for admission of additional ground. On perusal of the grounds of appeal raised by the assessee, it is noticed that the assessee has challenged the impugned assessment as invalid as the said assessment was completed without complying with the mandatory CBDT Instructions/Guidelines in relation to cases selected under limited scrutiny. Ground which was raised challenging the very validity of the assessment the same is admitted placing reliance on the decision of the Hon'ble Supreme Court in the case of National Thermal Power Company Limited Vs. CIT (supra). 5. Ld. Counsel for the assessee referring to assessment order submits that assessment has been completed on the basis of selection of the case under CASS for limited scrutiny with the reason "sale consideration of property is less than the sale consideration of property reported in AIR". Ld. Counsel for the assessee referring to page 4 of the Paper Book submits that this fact s....
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....he specific direction which reads as under: "Therefore, in such cases, the assessing officer shall continue the questionnaire and subsequent enquiry or verification only to specific points on the basis of which particular return selected for scrutiny." 8.1 Contrary to categorical instructions to the above effect, the Ld. AO as is evident from the first notice u/s 142(1) (PB 5), the Ld. AO has conducted various enquiry in S.No. 1 to 3 and none of which were related to the issue under limited scrutiny. 8.2 Ld. Counsel submits that in fact AO made reduction of cost of construction/improvement without enlarging the scope of enquiry without complying with the CBDT Instruction. The Ld. AO has recomputed the capital gain by taking the stamp duty valuation as the sale consideration which is the action undisputedly as per the reason for selection but the Ld. AO had also disturbed the cost of construction/improvement from Rs. 2,20,57,920/- to Rs. 65,32,500/-. The later action of the Assessing Officer was not covered by the reason for limited scrutiny selection as the reason in question was for understatement of sale consideration. The reason is clearly defined in its....
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....tiny selection is stated to be "sale consideration of the property in ITR is less than sale consideration of property reported in an AIR". Perusal of the notices dated 19.01.2015 and 24.09.2015 issued u/s 143(2) of the Act which is placed at pages 3 & 56 of the Paper Book respectively suggest that the AO has not intimated the scope of scrutiny in both these notices. It is also observed from the notice issued u/s 142(1) of the Act dated 18.07.2016 the AO required the assessee to furnish the following details/documents: - "1. Detailed note giving the nature of business activities, and its modus operandi carried out during the year. Whether nature of business activities are identical to the earlier year or there is any change. 2. Details of all bank accounts maintained by you either personal or for business purpose alongwith narration of Debit/Credit amounts of Rs. 1,00,000/- and above. Documentary evidence of credits not forming part of total income may be submitted. Also file copy(s) of Saving Bank Account(s) with narration of all Debit Credit entries The details should include nature of account, account no.., name and address of bank. 3 Please furnis....
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....ued notice under Section 143(2), dated 28th July, 2016, for a Limited Scrutiny covering four issues namely, interest expenses, income from real estate business, sale turnover mismatch and other expenses claimed in the profit and loss account. Subsequently, by notice dated 20 February, 2017, issues under Section 142(1) of the Act, the Assessing Officer called for information on secured and unsecured loan deposits and this was admittedly prior to the Limited Scrutiny being converted into a Complete Scrutiny by order dated 14 December, 2017. The learned Tribunal while holding that such action of the Assessing Officer was impermissible referred to the Circular issued by the Circular issued by the CBDT in Instruction no.5 of 2016, dated 14.7.2016. In the said Circular/Instruction, it was clarified by the CBDT 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. Further, it has been stipulated that only upon conversion of case to a Complete Scrutiny after following the procedure as outlined in the CBDT Instruction, the A....