INCOME TAX ACT, 1961

Section 143(3)

Assessment - Addition to income - Conversion of scrutiny from 'limited scrutiny' into 'complete scrutiny - No prior approval and permission of Pr. CIT/CIT

Assessee filed appeal against assessment order passed under section 143(3) by AO on the ground that no prior approval and the permission of Pr. CIT/CIT was obtained before conversion of its case from 'limited scrutiny' into 'complete scrutiny' while completing assessment, and passing assessment order. Held: Admittedly, no administrative approval from the competent authority was obtained by AO for converting the case of the assessee from 'limited scrutiny' into 'complete scrutiny' procedure of which has been laid down in Instruction No. 5 of 2016, dated 14-7-2016 issued by CBDT. Further, revenue has neither pointed out any distinguishing features in the facts of the present case and that of Urban Improvement Cooperative Bank Limited (ITA No. 7496/Del/2019 Order, dated 7-2-2020) nor has placed any material on record to demonstrate that the order of the Tribunal in the case of Urban Improvement Cooperative Bank Limited (ITA No. 7496/Del/2019 Order, dated 7-2-2020) has been set aside/stayed/overruled by higher judicial forum. Therefore, following the aforesaid decision in the case of Urban Improvement Cooperative Bank Limited (ITA No. 7496/Del/2019 Order, dated 7-2-2020) and for similar reasons, it was held that the impugned assessment order passed by the AO under section 143(3) to be null and void.

Followed:Urban Improvement Cooperative Bank Limited (ITA No. 7496/Del/2019 Order, dated 7-2-2020)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

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