MAHENDRA SHAMBHULAL THAKKAR,AHMEDABAD vs. ITO, WARD 3(3)(3), AHMEDABAD (EXISTING WARD 3(3)(2), AHMEDABAD), AHMEDABAD

O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 27.12.2024 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2016-17. 2. The assessee has raised the following grounds of appeal:

1. That the learned CIT(Appeal)/National Faceless Appeal Centre, Delhi has erred in law and facts by not quashing the assessment order under section 143(3) passed by the Ld.AO as the order passed by the Ld AO is without jurisdiction, against the law and facts, in particular, the Ld.AO has Asst. Year : 2016-17 - 2– converted limited scrutiny assessment into complete scrutiny assessment, without obtaining approval of the Ld. PCIT and therefore the Order passed by Assessing Officer is required to be quashed and the Id.AO should be direct the accept the returned income.

2. That the learned CIT(Appeal)/ National Faceless Appeal Centre, Delhi has erred in law and facts by not allowing the deduction of Interest paid on Housing Loan of Rs.2,00,000/- and therefore the learned AO should be directed to allow the said interest paid on Housing Loan while computing the total income.

5. That the learned CIT(Appeal)/ National Faceless Appeal Centre, Delhi has erred in law and facts by set-asiding the assessment order to the file of the leaned AO, though he does not have power to set aside the assessment order as the order passed by the learned AO is not under section 144 of the Act and therefore the order passed by the learned is bad in law and therefore the Id.AO should be directed to accept the returned income.

3. The case was selected for limited scrutiny in order to examine as to (i) whether sales turnover/receipts has been correctly offered tax and (ii) whether investment and income relating to properties are duly disclosed. At the conclusion of the assessment the Assessing Officer has made addition on account of disallowance of interest u/s.24B, unexplained income, unexplained cash credits. Asst. Year : 2016-17 - 3– 4. Aggrieved by the order of the Assessing Officer, the Assessee filed appeal before the Ld. CIT(A) who upheld the order of the Assessing Officer. The Ld. CIT(A) has not adjudicated the grounds taken by the assessee of expanding the limited scrutiny to complete scrutiny without the permission of the PCIT. Further Ld.PCIT without adjudicating the grounds on merits set-aside the matter to the Assessing Officer for de-novo assessment. Aggrieved by the order of the Ld. CIT(A), the Assessee filed appeal before the Tribunal. Heard the arguments of both the parties and perused the material available on record. We direct that Assessing Officer while passing the assessment order de-novo shall restrict the enquiries to the reasons selected for limited scrutiny and shall not expand the ambit of scrutiny as approval of the PCIT has not been obtained during the original Assessment proceedings.

The order is pronounced in the open Court on 18.12.2025. (SUCHITRA KAMBLE) VICE-PRESIDENT () Ahmedabad; Dated 18.12.2025 MV Asst. Year : 2016-17 - 4–