ABHEESH KUMAR JAIN,KATINI vs. INCOME TAX OFFICER WARD-1, KATNI

ITA 85/JAB/2025Status: DisposedITAT Jabalpur19 June 2026AY 2015-166 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO exceeded the scope of limited scrutiny by investigating debtors, which was not the original purpose. The AO also failed to obtain the necessary approval to convert the scrutiny to complete. Therefore, the addition was not sustainable.

What were the facts?

The assessee's case was selected for limited scrutiny to verify cash deposits. The Assessing Officer (AO) expanded the inquiry to verify debtors, and on non-response from two debtors, treated their amounts as non-genuine and made an addition. The CIT(A) upheld the addition.

What were the issues?

Whether the AO exceeded the scope of limited scrutiny by investigating debtors without proper approval. Whether the addition made on account of non-genuine debtors is justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 133(6),Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH “SMC”, JABALPUR

Before: SHRI KUL BHARAT

For Appellant: Shri Abhijeet Shrivastava, Advocate
For Respondent: Shri N. M. Prasad, Sr. DR-1

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Addl/Joint Commissioner of Income-tax (Appeals)- 2, Gurugram dated 07.02.2025 and pertaining to the assessment year 2015-16. The assessee has raised the following grounds of appeal: -

“1. That learned NFaC was not justified in upholding the order of the Ld. AO in view of the fact that the order passed u/s 143(3) was illegal, void and without juri iction.

2.

That learned NFaC has made the addition on account has been done debtors amount which is a business income where as the case was selected for limited scrutiny under CASS to verify ca

The order continues below.

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