In case of AIR based scrutiny AO’s scope is limited to AIR transactions only

 Brief of the case:

• The ITAT Amritsar bench in the above cited case held that the scrutiny of cases selected on the basis of information received through Annual Information Return (AIR) would be limited only to the aspects of information received through AIR. Therefore, any enquiries made beyond verifying the AIR transaction would result in crossing the scope of limited scrutiny which is not allowed unless there is a potential escapement more than 10 lacs and prior approval of the Commissioner is sought in this behalf.
• Therefore, when in AIR transaction was reported that assessee made cash deposit of Rs. 25 lacs in her bank account , the AO’s scope is limited to verify only the source of such deposit and therefore, examination made relating to calculation of capital gain is not allowed as the same is beyond the scope of limited scrutiny.

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