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Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN, JM & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the assessee against the order of the Income Tax Officer, Ward 9(1), (hereinafter referred to as the “Ld. CIT(A)”] dated 04.02.2025 for the AY 2014-15.
2. At the time of hearing, the ld. counsel of the assessee raised a legal issue challenging the assessment framed by the ld. AO on the ground that the case of the assessee was selected for limited scrutiny however, the scrutiny proceedings were conducted as if this was a complete unlimited scrutiny and therefore, the assessment was framed is invalid and may be quashed.
3. The facts in brief are that the assessee filed the return of income on 30.12.2014 declaring total income at ₹44,840/-. The case of the assessee was selected for limited scrutiny under Computer Assisted
In the appellate proceedings, the ld. CIT (A) upheld the order of ld. AO when the assessee failed to respond to the various notices issued during appeallte proceedings.
The ld. Counsel for the assessee vehemently submitted before us that the assessment framed by the ld. AO is invalid and non-est in the eyes of law as the notice u/s 143(2) of the Act dated on 04.09.2015 was issued by the ITO Ward 9(4), Kolkata for limited scrutiny without mentioning the point of examination in the limited scrutiny and thereafter, the notice u/s 142(1) of the Act was issued dated 06.06.2016, along with questionnaire raising therein 16
The ld. DR on the other hand relied on the orders of authorities below by submitting that though the case of the assessee was selected for limited scrutiny vide notice dated 04.09.2015 mentioning that type of scrutiny as limited scrutiny with no details as to the examination given therein. However, during the assessment proceedings ,the point to be examined by the ld. AO in limited scrutiny was examined and added to the income of the assessee though it was not specifically mentioned either in the notice u/s 143(2) of the Act or in the assessment order itself. The ld. DR therefore, prayed that the argument of the counsel of
After hearing the rival contentions and perusing the materials available on record, we find that in this case the assessee is selected for limited scrutiny as is apparent from the notice issued u/s 143(2) of the Act dated 04.09.2015, which is extracted below:-
“ ” 08. Thereafter, we note that the notice u/s 142(1) of the Act dated 06.06.2016, issued along with questionnaire was issued to the assessee and served upon it, wherein the ld. AO called upon the assessee to
On perusal of the above notice and questionnaire we observe that though the case of the assessee was selected for limited scrutiny, however, the questionnaire has been issued by the AO as if it were a complete scrutiny. In our opinion, the said action on the part of the ld.
In order to ensure that maximum objectivity is maintained in converting a case falling under Limited Scrutiny' into a 'Complete Scrutiny' case, the matter has been further examined and in partial modification to Para 3(d) of the earlier order dated 29.12.2015, Board hereby lays down that while proposing to take up 'Complete Scrutiny' in a case which was originally earmarked for 'Limited Scrutiny', the Assessing Officer ('AO') shall be required to form a reasonable view that there is possibility of under assessment of income if the case is not examined under 'Complete Scrutiny'. In this regard, the monetary limits and requirement of administrative approval from Pr. CIT/CIT/Pr. DIT/DIT, as prescribed in Para 3(d) of earlier Instruction dated 29.12.2015, shall continue to remain applicable.
Further, while forming the reasonable view, the Assessing Officer would ensure that: a. there exists credible material or information available on record for forming such view; b. this reasonable view should not be based on mere suspicion, conjecture or unreliable source; and
In the result, the appeal of the assessee is allowed on legal issue.
Order pronounced in the open court on 24.04.2025.