Case Law Details
Ganadhiraj Mazoor Sahakari Sanstha Ltd. Vs ITO (ITAT Pune)
On the perusal of record, the issue which arises for adjudication is whether in the present case where the case was selected for scrutiny through Computer Aided Scrutiny Selection (CASS) for the reason, i.e. “low profit before interest and taxes” shown, can the Assessing Officer enlarge the scope of scrutiny and go into the eligibility of claim under section 80P of the Act. The perusal of the assessment order reflects that the case was selected for compulsory scrutiny through the CASS for the limited purpose of verifying the low profits shown by the assessee. The term used is „complete scrutiny‟ but it is very categorically mentioned that it is for the reason of the “low profits shown by the assessee”. The Assessing Officer accepted the explanation of the assessee with regard to the low profits and no addition was made on that account. However, the Assessing Officer went into the claim of deduction under section 80P(2)(a)(vi) of the Act and held the assessee not eligible for the same. The CIT(A) upheld the order of Assessing Officer. The assessee is in appeal on the ground that when the selection of the case was made under CASS for limited scrutiny the same could not be enlarged for complete scrutiny in the absence of any permission taken from the Principal Commissioner or the Commissioner.
FULL TEXT OF THE ITAT JUDGEMENT
The appeal filed by the assessee is against the order of Commissioner of Income Tax (Appeals) – 1, Aurangabad dated 01.10.2018 relating to assessment year 2015-16 against order passed u/s 143(3) of the Income Tax Act 1961 (in short „the Act‟).
2. During the course of hearing, the assessee had raised the additional grounds of appeal and has pointed out that the said grounds of appeal goes to the root of the jurisdiction invoked by the Assessing Officer and hence be admitted for adjudication. I find the additional grounds of appeal raised by the assessee do not require any investigation into the facts, hence the same are admitted for adjudication. The additional grounds of appeal read as under :
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