2025 (3) TMI 2062

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....inafter referred to as 'the Act'). 2. Heard both the parties at length. Case file perused. 3. We straightway advert to the assessee's sole substantive ground raised in the instant appeal seeking to reverse the learned CIT(E) revision order passed under section 263 of the Act terming the Assessing Officer's regular assessment framed on 30th June, 2017 as an erroneous one causing prejudice to the interest of the Revenue. 4. It emerges at the outset that the assessing authority herein had in fact finalized it's above regular assessment in an "limited scrutiny" case qua the sole issue of "transaction to trust with specified person" as per section 143(2) notice dated 04.08.2016 (page 9 in the paper-book), whereas, the CIT(E) has sought ....

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.... same without converting the case into complete scrutiny? 5. We have heard Mr. Amit Sharma, learned standing Counsel appearing for the appellant and Mr. Abhratosh Majumder, learned senior Advocate for the respondent. 6. The short issue which falls for consideration in the instant case is whether the Assessing Officer exceeded his jurisdiction in completing the assessment on grounds which were not subject matter of the limited scrutiny. 7. The contention of the learned standing Counsel for the appellant is that the assessee was put on notice on 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 u....

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....d his jurisdiction. 8. Learned senior Counsel for the respondent/assessee has placed before us another Instruction issued by the CBDT dated 30th November, 2017, being F.No. DGIT(Vig.)/HQ/SI/2017-18, wherein the CBDT has noted instances where some of the Assessing Officer were travelling beyond the issues while making assessment in limited scrutiny cases by initiating inquiries on new issue without complying with mandatory requirements of the relevant CBDT Instruction dated 26.09.2014, 29.12.2015 and 14.07.2016. It has been stated that these instances have 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 ir....

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....he said decision as the scheme of assessment as provided under Section 143 of the Act is a complete code by itself and the circumstances under which the power under sub-section (2) of Section 143 could be invoked has been clearly spelt out and on a reading of sub-section (3) of Section 143, it's evidently clear that on the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and ....