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Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA
Date of hearing: 30/08/2022 Date of Pronouncement: 01/09/2022 ORDER PER N.K. BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the CIT(A)-20, New Delhi dated 29.03.2019 pertaining to A.Y. 2015-16.
The grievance of the assessee read as under :-
3 Representatives of both the sides were heard at length. Case records carefully perused. 4. Briefly stated the facts of the case are that assessee filed return of income on 23.09.2015 declaring total income of Rs.19454270/-. The return was selected for scrutiny assessment for limited scrutiny the reasons for selecting the return for limited scrutiny in CASS is as under :-
It can be seen from the reasons that the return was selected for limited scrutiny to consider higher interest expenses relatable to the exempt income u/s. 14A of the Act. The CIT(A) at para 6.1.3 of order has held as under :-
After deleting the impugned disallowance made by the AO u/s. 14A of the Act the CIT(A) proceeded as under :- appellant.
Before us the Counsel for the assessee drew our attention to the decision of the coordinate Bench and pointed out that on identical set of facts the coordinate bench has held that in case of limited scrutiny the AO cannot exceed latitude of limited scrutiny unless he follows the CBDT instruction No.5/2016 dated 14.07.2016.
Per contra the DR strongly supported the order of the CIT(A) and pointed out that the point raised by the Counsel is not coming out of the grounds taken before the Tribunal.
We have carefully considered the orders of the authorities below. There is no dispute that the return was selected for limited scrutiny as per the reasons given elsewhere. It is incorrect to say that the point raised by the Counsel is not coming out of the grounds taken before us in as much as ground No.1 mentioned elsewhere challenges the enhancement made by the CIT(A) which is beyond this scope of limited scrutiny.
We find that the coordinate Bench in the case of Arjun Transport Company Pvt. Ltd. in order dated 02.07.2021 under similar set of facts has held as under :-
On finding parity of facts respectfully following the decision of the Coordinate Bench we direct the AO to delete the impugned disallowance. The appeal of the assessee is accordingly allowed.
Order announced in the open court on 01.09.2022.