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Facts
The assessee's appeal for assessment year 2015-16 arose against the order of the CIT(A)-NFAC. The assessment proceedings were initiated under section 143(3) of the Income-tax Act, 1961.
Held
The Tribunal noted that the assessment order was passed on limited scrutiny, yet the disallowance was not part of the limited scrutiny. Therefore, the assessment order was deemed invalid.
Key Issues
Validity of the assessment order passed under limited scrutiny when the disallowance was not part of the limited scrutiny.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”],Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1052213697(1) dated 20.04.2023, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It emerges during the course of hearing that there arises the first and foremost issue of validity of impugned assessment order dated 30.12.2017 itself once it was an instance of “limited scrutiny” on various issues whereas only the assessee’s expenditure stood disallowed by learned lower authorities. The Revenue fails to dispute this expenditure disallowance nowhere formed subject matter of “limited scrutiny”.
That being the clinching fact, we quote PCIT v/s Weilburger Coatings (P) Ltd. (2023) 155 taxmann.com 580(Cal) to quash the impugned assessment for this precise reason.
All other pleadings stand rendered academic.
This assessee’s appeal is allowed in very terms. Order pronounced in the open court on 13TH February, 2025.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13THFebruary, 2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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