Partial Relief Granted for Cash Deposits Beyond Limited Scrutiny Scope During Demonetisation

Vudatha Vani Rao Vs ITO (ITAT Visakhapatnam) Income Tax Appellate Tribunal (ITAT) Visakhapatnam bench, in the case of Vudatha Vani Rao vs. Income Tax Officer (ITO), addressed the critical question of whether an Assessing Officer (AO) can extend inquiries beyond the defined scope of a limited scrutiny assessment. The tribunal’s decision, pronounced on January 11, 2024, partly allowed the assessee’s appeal, focusing on cash deposits made during the demonetisation period. Case Background: The assessee, Vudatha Vani Rao, an individual engaged in saree designing, filed her income tax re...