Addition beyond the limited scrutiny notice is unsustainable

ACIT Vs Trehan Promoters and Builders Pvt. Ltd. (ITAT Delhi)

ITAT Delhi held that in case of limited scrutiny, AO cannot exceed the jurisdiction beyond the one which he has carved out himself in the notice issued for limited scrutiny. Addition beyond his jurisdiction is unsustainable.

Facts-

Assessee was engaged in the business of purchase, construction, development and sale of commercial IT space at Gurgaon, Haryana. An assessment order came to be passed on 28.12.2017 by making addition of Rs. 4,40,57,000/- being suppression of closing stock and a sum of Rs. 11,66,454/- has been disallowed under section 37 of the Act.

As against the assessment order dated 28.12.20 17, the assessee has preferred an appeal before the CIT(A). CIT(A) deleted the additions. Being aggrieved, revenue has preferred the present appeal.

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