2025 (6) TMI 2079

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....hallenging correctness of both the lower authority's action disallowing Rs. 49,17,549/- representing depreciation claim, in the course of assessment framed on 21.09.2022 and upheld in the lower appellate proceedings, it emerges at the outset that it was a case of "limited" scrutiny on the issue of "registration/approval under various sections of IT Act has not been granted or has been cancelled/withdrawn". 4. I have given my thoughtful consideration to the assessee's instant sole substantive grievance as well as the Revenue's vehement contentions. I am of the considered view that once the impugned issue of section 57(iii) disallowance nowhere formed subject matter of "limited" scrutiny exercise herein, both the learned lower authori....

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.... that particular issue by the Assessing Officer, the assessee participated in the proceedings and thereafter the assessment was completed by order dated 27th December, 2017 under Section 143(3) of the Act. The assessee carried the matter on appeal before the Commissioner of Income Tax (Appeals) 5 [CIT(A)] and the appeal was contested on merits and the appeal stood partly allowed on certain issues by order dated 14th January, 2019. The assessee being aggrieved by the disallowed portion of the order passed by the CIT (A) preferred appeal before the Tribunal and in the appeal additional ground was raised contending that the action of the CIT (A) in confirming the action of the Assessing Officer in making additions in respect of issues not ment....

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....e been viewed seriously by the CBDT and in one case the Central Inspection Team of the CBDT was tasked with examination of assessment records on receipt of allegations of several irregularities and among other irregularities it was found that no reasons had been recorded for expanding the scope of limited scrutiny, no approval was taken from the PCIT for conversion of the limited scrutiny case to a complete scrutiny case and the order sheet was maintained very perfunctorily. Further, the CBDT has recorded that this gave rise to a very strong suspicion of mala fide intentions and the Officer concerned has been placed under suspension. Therefore, it was reiterated that the Assessing Officer should abide by the Instructions of CBDT while compl....