The Tax Publishers2020 TaxPub(DT) 4987 (Kol-Trib)

INCOME TAX ACT, 1961

Section 143(3)

Where assessee contended that his case was selected for limited scrutiny on issue of cash deposits in bank accounts being more than turnover but AO made addition on account of profit allegedly earned by assessee on undisclosed turnover, considering fact that grounds on which addition was made by AO was directly related to ground on which case of assessee was selected for limited scrutiny, assessment could not be held invalid.

Assessment - Scope of limited scrutiny - Case of assessee was selected for limited scrutiny on issue of cash deposits in bank accounts being more than turnover - AO made addition on account of profit allegedly earned by assessee on undisclosed turnover

Assessee contended that his case was selected for limited scrutiny on issue of cash deposits in bank accounts being more than turnover. However, AO was not justified in making addition on account of profit allegedly earned by assessee on undisclosed turnover, which was an altogether different issue.Held: Addition made by AO on account of profit allegedly earned by assessee on undisclosed turnover was directly related to the ground on which the case of the assessee was selected for limited scrutiny. Since same being fall-out of the verification made by AO on issue, on which case of assessee was selected for limited scrutiny, there was no merit in contention raised by assessee that addition made by AO was beyond scope of limited scrutiny.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2014-15


INCOME TAX ACT, 1961

Section 143(3)

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