CIT(A) cannot travel beyond issue selected under limited scrutiny

Arjun Transport Company Private Limited Vs ITO (ITAT Mumbai)

When a case is selected for ‘limited scrutiny’ to verify the disallowance made u/s 14A of the Act and AO makes disallowance u/s 14A in the assessment order passed u/s 143 of the Act then the CIT(A) cannot travel beyond the issue selected under ‘limited scrutiny’ and makes disallowance u/s 36(1)(iii) of the Act while deleting disallowance u/s 14A.

FULL TEXT OF THE ORDER OF ITAT MUMBAI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-20, Mumbai [in short ‘the CIT(A)’] dated 20/06/2016 for the assessment year 2016-17.

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