Limited Scrutiny: AO can’t verify cash withdrawals when permission was for cash deposit verification

Vishnu Srinivasa Rao Kakarla Vs ITO (ITAT Visakhapatnam) The case of Vishnu Srinivasa Rao Kakarla Vs ITO revolves around the issue of limited scrutiny and the jurisdiction of the Assessing Officer (AO) to verify cash withdrawals. The appeal was filed against the order of the Commissioner of Income Tax (Appeals) by the assessee. This article provides an analysis of the ITAT’s decision and its implications for taxpayers. Analysis: The assessee, a Fish Commission Agent, filed his income tax return for the AY 2018-19. The case was selected for limited scrutiny to verify cash deposits. The AO...