Suresh Jugraj Mutha Vs Addl.CIT (ITAT Pune)
Conclusion: It is outside the jurisdiction of AO converting the limited scrutiny case like the present one to the unlimited one without the approval of Administrative Commissioner of Income Tax.
Facts –
Assessee filed the return and the case was taken up for limited scrutiny for the purpose of scrutinizing the cash deposit in saving bank as per AIR information.
However AO made addition on account of disallowance of interest and disallowed deduction claimed by the assessee u/s 54.
Assessee submitted that making additions by the AO outside the said limited scrutiny under Computer Aided Scrutiny Selection (in short ‘CASS’) without obtaining the written approval of the concerned Commissioner of income-tax is bad in law.
Assessee submitted that making addition on account of interest disallowance and denial of deduction u/s.54 are not the issues for which the case was taken up for limited scrutiny under CASS. Therefore, the additions made by the AO are not sustainable.
Held –
Board’s circular dated 08.09.2010 do not permit the AO from converting the limited scrutiny case like the present one to the unlimited one without the approval of Administrative Commissioner of Income Tax.
In case of S.F. Chougule, Pune Bench of the Tribunal, has held that that where the
