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Facts
The assessee filed an appeal against the order of the CIT(A) which confirmed the Assessing Officer's action due to the assessee's failure to submit required documents despite multiple notices. The assessee contended that the original assessment was limited scrutiny, but the AO exceeded jurisdiction by conducting a complete scrutiny.
Held
The Tribunal held that the matter should be remanded to the CIT(A) for a de novo assessment, allowing the assessee an opportunity to provide all necessary documents and clarifications.
Key Issues
Whether the Assessing Officer exceeded the scope of limited scrutiny, and if the CIT(A) rightly dismissed the appeal without considering the assessee's submissions.
Sections Cited
41(1), 250
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Income Tax Appellate Tribunal, “SMC” BENCH, 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 21.06.2024 passed by the Commissioner of Income Tax (Appeals) Mumbai/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2016-17.
The assessee has raised the following grounds of appeals:
(1) That the case of the appellant although was selected for limited scrutiny to verify the issues viz. (a) whether unsecured loans are genuine and from disclosed sources & (b) whether sundry creditors are genuine; however, the Shri Giriraj Ply N Board Industries Ltd Vs. ITO Asst. Year : 2016-17 - 2– A.O. has travelled beyond jurisdiction by converting into complete scrutiny by scrutinizing the other issue and making addition on account of remission of trade liability u/s.41(1) of the Act of Rs.26,95,613/-, such issue was not within the parameter of limited scrutiny, besides, as a matter of fact, on account of identified issues, the A.O. has not made any addition in the hands of the appellant. (2) That when the assessment is made by the A.O. as complete scrutiny, there is not a whisper in the assessment order as to the prior permission of the PCIT having been obtained allowing the A.O. for conversion of limited scrutiny into complete scrutiny, in violation of mandatory requirement of relevant CBDT instructions. (3) That the order so passed by the Ld. A.O. and being sustained by the Ld. CIT(A), NFAC, is bad in law, illegal, besides being in violation of principle of natural justice and equity as having been passed without considering the material already placed on record in form of appellant's fairly detailed written submissions dated 02.11.2018 and 13.11.2018, although being reproduced in the assessment order at para-4.2 and 4.4. (4) That the Order so passed by the Ld. CIT(A) NFAC is bad in dismissing grounds of appeal so raised before him by brushing aside the plea of the appellant further narrated at Column no. 13 of Form No. 35.
3. On going through the record, we find that the notices u/s.250 were issued on 19.01.2021, 28.04.2023, 13.09.2023, 14.12.2023 & 29.05.2024, requesting the assessee to submit certain details/clarification/ explanation to substantiate its claims. Despite various notices issued by the Ld.CIT(A), the assessee failed to submit any submissions/documents. Hence, the Ld. CIT(A) confirmed the action of the Assessing Officer by dismissing the appeal of the assessee. The Ld. Counsel for the assessee prayed that, given an opportunity, due compliances will be made and all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice the matter is remanded to the Ld. CIT(A) for conducting assessment de-novo. The assessee shall submit all the relevant bank Shri Giriraj Ply N Board Industries Ltd Vs. ITO Asst. Year : 2016-17 - 3– statement/submission/document before the Ld. CIT(A) and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.
In the result, the appeal of the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 07.08.2025.
Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.08.2025 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy