Case Law Details
Nazare Vikas Karyakari Seva Shakari Society Ltd Vs ITO (ITAT Pune)
Ld. Counsel submitted that all these cases were commonly selected for scrutiny under CASS. As per the procedure and as per the Circular of CBDT, the Assessing Officer constrained to limit to scrutiny to the issue so selected under CASS. In case, if the Assessing Officer is of the opinion to extend the scrutiny to other issue, the Assessing Officer is under obligation to obtain requisite permission from his higher authorities. That being the procedure laid down by the CBDT for such matter in all these 10 appeals, the respective Assessing Officers did not make any addition on the issue which is selected under CASS in the assessments. However, the Assessing Officers extended the scope of scrutiny to other issues and then made additions rejecting the return of income filed by the corresponding assessees. This kind of approach of the Assessing Officer in making the assessments i.e. beyond the CASS provisions, is outside the scope of the Circular of the CBDT dated 08.09.2010. It is also the fact that the Assessing Officer never obtained the permission from the superior authorities as per the said circular before the scope of scrutiny extended to non-CASS issues.
ITAT held that it is settled legal issue at the level of the Tribunal, Pune Bench, in the cases, selected under CASS, the additions on the non-CASS issues can only be made after obtaining due permission from the superior authorities and the said approval of the superior authorities in writing should be available on records. In all these ten appeals under consideration, we find there is no whisper about the obtaining of such approval from the superior authorities before the scrutiny scope is extended to non-CASS issues. In any case, the Assessing Officer did not make any addition on account of the issues selected under CASS. Therefore, in our considered view, the said order of the Tribunal covers the common solitary preliminary issue raised before us in all the ten appeals. Accordingly, the preliminary issue raised by the assessee in all these ten appeals is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
There are ten appeals under consideration. All these appeals share the common grounds of appeal for the assessment year 2014-15. Since all the ten appeals linked by common issues, common arguments by common counsel and common binding judgements, therefore, these appeals can be heard together and adjudicated by this composite order.
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