Limited Scrutiny

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

Vishnu Srinivasa Rao Kakarla Vs ITO (ITAT Visakhapatnam) - ITAT Visakhapatnam in case of Vishnu Srinivasa Rao Kakarla Vs ITO clarifies that AO cannot travel beyond his jurisdiction to verify cash withdrawals when limited scrutiny was for verifying cash deposits....

Section 143(2) Notice: A Prerequisite for Income Tax Assessment in Limited scrutiny case

Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner (Madras High Court) - Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner (Madras High Court) The case of Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner, which was heard by the Madras High Court, presents a unique perspective on the role of Notice under Section 143(2) in income tax assessments. This ...

Enquiring on issues other than limited scrutiny issue before conversion into complete scrutiny is bad-in-law

Sukhdham Infrastructures LLP Vs ITO (ITAT Kolkata) - ITAT Kolkata held that enquiring on issues other than limited scrutiny issue, before conversion of limited scrutiny to complete scrutiny, is against the procedure laid down in Instruction No. 5/2016 of CBDT dated 14.07.2016. Accordingly, assessment order is quashed as nullity and bad-in-law....

Matter which was not subject matter of limited scrutiny cannot be raised in revisionary proceedings

Longia Engineers Vs PCIT (ITAT Chandigarh) - ITAT held that matter relating to wages/labour expenses which was not subject matter of limited scrutiny cannot be raised in revisionary proceedings u/s 263 for the first time....

PCIT not entitled to go beyond reasons related to limited scrutiny

Sanjiv Kumar Mittal Vs PCIT (ITAT Delhi) - Sanjiv Kumar Mittal Vs PCIT (ITAT Delhi) On appraisal of the evidences placed before us, we find that vide notice dated 10.08.2018 specific queries were raised by the AO in relation to the issue raised for the purposes of limited scrutiny, i.e., ‘Payment of tax in cash during demonetization period...

Guidelines for Compulsory Income Tax Scrutiny – FY 2023-24 clarification

F. No. 225/66/2023 — ITA-II - (03/08/2023) - Government of India issues guidelines for compulsory selection of returns for Complete Scrutiny during FY 2023-24. Find the procedure and clarification here....

Guidelines for Complete Income Tax Return Scrutiny in FY 2023-24

F.No.225/66/2023/ITA-II - (24/05/2023) - Central Board of Direct Taxes (CBDT) released guidelines outlining the parameters and procedures for the compulsory selection of income tax returns for complete scrutiny during the financial year 2023-24. The guidelines specify various scenarios, including cases related to surveys, search and seizur...

Compulsory Income Tax Scrutiny criteria/Guideline for FY 2022-23

F.No.225/81/2022/ITA-II - (11/05/2022) - CBDT Issues Guidelines for compulsory selection of Income Tax returns for Complete Scrutiny during the Financial Year 2022-23 and procedure for compulsory selection in such cases vide Instruction No. F.No.225/ 81/2022/ITA-II Dated: 11th May, 2022. CBDT notifies Scrutiny criteria/Guideline for follow...

Recent Posts in "Limited Scrutiny"

Guidelines for Compulsory Income Tax Scrutiny – FY 2023-24 clarification

F. No. 225/66/2023 — ITA-II 03/08/2023

Government of India issues guidelines for compulsory selection of returns for Complete Scrutiny during FY 2023-24. Find the procedure and clarification here....

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

Vishnu Srinivasa Rao Kakarla Vs ITO (ITAT Visakhapatnam)

ITAT Visakhapatnam in case of Vishnu Srinivasa Rao Kakarla Vs ITO clarifies that AO cannot travel beyond his jurisdiction to verify cash withdrawals when limited scrutiny was for verifying cash deposits....

Section 143(2) Notice: A Prerequisite for Income Tax Assessment in Limited scrutiny case

Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner (Madras High Court)

Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner (Madras High Court) The case of Angusamy Gounder Subbu Rathinamun Vs Assistant Commissioner, which was heard by the Madras High Court, presents a unique perspective on the role of Notice under Section 143(2) in income tax assessments. This verdict, handed down on an order of asse...

Guidelines for Complete Income Tax Return Scrutiny in FY 2023-24

F.No.225/66/2023/ITA-II 24/05/2023

Central Board of Direct Taxes (CBDT) released guidelines outlining the parameters and procedures for the compulsory selection of income tax returns for complete scrutiny during the financial year 2023-24. The guidelines specify various scenarios, including cases related to surveys, search and seizure actions, non-filing of returns, additi...

Enquiring on issues other than limited scrutiny issue before conversion into complete scrutiny is bad-in-law

Sukhdham Infrastructures LLP Vs ITO (ITAT Kolkata)

ITAT Kolkata held that enquiring on issues other than limited scrutiny issue, before conversion of limited scrutiny to complete scrutiny, is against the procedure laid down in Instruction No. 5/2016 of CBDT dated 14.07.2016. Accordingly, assessment order is quashed as nullity and bad-in-law....

Matter which was not subject matter of limited scrutiny cannot be raised in revisionary proceedings

Longia Engineers Vs PCIT (ITAT Chandigarh)

ITAT held that matter relating to wages/labour expenses which was not subject matter of limited scrutiny cannot be raised in revisionary proceedings u/s 263 for the first time....

PCIT not entitled to go beyond reasons related to limited scrutiny

Sanjiv Kumar Mittal Vs PCIT (ITAT Delhi)

Sanjiv Kumar Mittal Vs PCIT (ITAT Delhi) On appraisal of the evidences placed before us, we find that vide notice dated 10.08.2018 specific queries were raised by the AO in relation to the issue raised for the purposes of limited scrutiny, i.e., ‘Payment of tax in cash during demonetization period’. In response, the assessee has [&hel...

Assessment cannot exceed prescribed ‘limited’ scrutiny scope except as per due process of law

Sagar Uttam Murhe Vs DCIT (ITAT Pune)

Sagar Uttam Murhe Vs DCIT (ITAT Pune) Case law (2020) 120 com 187 CIT vs. Padmavati (Mad) (HC) holds that such an assessment could not exceed the scope of the prescribed ‘limited‘ scrutiny except as per the due process of law. This is indeed coupled with various coordinate benches decisions reiterating the very legal propositi...

Limited scrutiny – Section 263 cannot be invoked for other reasons

Sahita Construction Company Vs Pr.CIT (ITAT Indore)

Sahita Construction Company Vs Pr.CIT (ITAT Indore) Perusal of records shows that assessee’s case was selected for limited scrutiny through CASS for verification of “contract receipts/fees mismatch, sales turnover mismatch and tax credit mismatch”. The issue of payment to contractors and tax deducted thereon was never a part of reas...

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Section 263: PCIT cannot comment on issues not forming part of limited scrutiny

Baljeet Yadav Vs PCIT (ITAT Jaipur)

Baljeet Yadav Vs PCIT (ITAT Jaipur) It is evident from the assessment order and impugned order that the assessee’s case was selected for scrutiny under CASS for examination of cash deposits made in the bank during the demonetarization period. It is prima facie not clear whether it was a limited scrutiny case or a detailed […]...

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