Additions Beyond Limited Scrutiny Lack Jurisdiction & Must Be Deleted: Calcutta HC

PCIT Vs Weilburger Coatings (India) Pvt. Ltd. (Calcutta High Court) The case involved an appeal by the Income Tax Department against the ITAT Kolkata’s order favoring Weilburger Coatings (India) Pvt. Ltd. The primary issue was whether the Assessing Officer (AO) exceeded his jurisdiction by making additions on matters not covered under limited scrutiny. The AO had assessed the company’s carry-forward losses, which were beyond the scope of limited scrutiny. The Commissioner of Income Tax (Appeals) [CIT(A)] partly allowed the appeal, but the ITAT overruled the AO’s action, holding that the ...