Case Law Details
Sudhir Chadha Vs ACIT (ITAT Delhi)
ITAT Delhi held that it is settled law that the revenue cannot travel beyond the issues involved in the limited scrutiny cases, except in exceptional circumstances and hence addition confirmed beyond the limited scrutiny case is unsustainable.
Facts-
During the course of assessment proceedings, the Assessing Officer, noticed that the Assessee had debited expenses of Rs.4,80,000/- to its profit and loss account under the head “commission to others”, therefore the Assessee was show caused to explain the commission expenses incurred by the Assessee, being a Medical Doctor by profession.
AO, after considering the reply of the Assessee observed that the Assessee is a Doctor and is barred by Medical Counsel Rules from giving of and receiving any commission, gifts or gratuity and bonus paid to any person/entity and therefore, the commission of Rs.4,80,000/- paid to others is not a valid business expense and ultimately by passing order u/s 143(3) of the Act, disallowed the same and added it to the income of the Assessee.
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