Case Law Details
Sita Ram Swami Vs ITO (ITAT Jaipur)
Conclusion: Addition made u/s 69 was liable to be quashed as the order passed by AO would be nullity as he couldn’t convert limited scrutiny into complete scrutiny in absence of requisite approval from the competent authority.
Held: Assessee had challenged the jurisdiction of AO by passing the impugned order u/s 143(3) for the reason that case was initially selected for limited scrutiny and without seeking permission from the competent authority to convert limited scrutiny into complete scrutiny, the addition had been made by AO in respect of another transaction towards unexplained investment in purchase of property whereas no addition had been made towards the transaction pertaining to sale of immovable property for which the matter was initially selected for limited scrutiny. It was held that AO neither in the assessment order nor in the assessment proceedings had stated that he had sought and had been granted any approval by the appropriate authority for converting the limited scrutiny into complete scrutiny or travelling beyond the matter for which the matter was initially selected for limited scrutiny. Further, nothing had been brought to our notice during the course of hearing that such approval was sought by the AO and had been granted by the appropriate authority. Therefore, AO had taken up the fresh issue of unexplained investment for purchase of immovable property, which had no connection with the issue of sale of immovable property for which the matter was selected for limited scrutiny, without seeking prior approval of the competent authority. The addition so made u/s 69 was liable to be quashed as the order passed by AO would be nullity as beyond his jurisdiction in absence of requisite approval from the competent authority.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order of ld. CIT(A)-2, Jaipur dated 15.11.2019 wherein the assessee has taken following grounds of appeal:-
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