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TMI Blog2023 (8) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... . Legal ground is adjudicated in favour of the assessee, all remaining meritare grounds rendered themselves academic. - Hon ble Shri S. S. Godara, Judicial Member And Shri G. D. Padmahshali, Accountant Member For the Assessee : Smt Deepa Khare For the Revenue : Shri Ramnath P Murkunde ORDER PER G. D. PADMAHSHALI, AM; The present appeal by the assessee instituted challenging the DIN Order No. ITBA/NFAC/S/250/2022-23/1049524703(1) dt. 08/02/2023 passed u/s 250 of the Income-tax Act, 1961 [ the Act ] by the National Faceless Appeal Centre [ NFAC ] for the assessment year [ AY ] 2016-17. 2. Briefly stated the facts coming out of the records are; 2.1 The assessee an individual engaged in the business of deve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned authority in converting limited scrutiny into complete scrutiny; 1. In the facts and circumstances of the case and in law, the learned CIT-(A) has erroneously ignored the submission made by the appellant assessee that the amount of Rs. 30,00,000/- was deposited out of withdrawal made in cash from SB account on 08.10.2014 of Rs. 30,00,000/-. And further stated that this bank account was not disclosed in the return of income. The fact that the appellant assessee has disclosed his business accounts and this being personal SB account hence not disclosed in books of account of his business. Hence, the conclusions drawn by the learned CIT-(A) being bad in law, null and void arbitrary, baseless, devoid of merits the same may please ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d scrutiny notice, which is in violation of CBDT instruction no. 5 of 2016 dated 14/07/2016 and therefore the addition made deserves to be deleted and Assessment order shall be quashed. It is submitted that all the facts are on record. It is prayed that the same may kindly be admitted and decided on merits. 3. On the limited issue, we have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of Income Tax Appellate Rules, 1963 perused the material placed on record, case laws relied upon by the appellant as well the respondent and duly considered the facts of the case in the light of settled legal position forewarned to either parties. 4. First thing first, in view of the Hon ble Apex Court j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larging the scope of the scrutiny had not obtained prior approval from the higher authority in terms of CBDT Circular 5/2016 dt. 14/07/2016. Per contra the Ld. DR could hardly showcase on record the proof of approval if any obtained in converting limited scrutiny into complete scrutiny. 5.3 It is to be noted that, the scheme of scrutiny of return is provided u/s 143(2) in two variants (1) limited scrutiny and (2) complete scrutiny. Where the case is selected in former category and while carrying out assessment therein the AO notices any potential escapement of income exceeding the threshold prescribed by the CBDT, then before proceeding to enlarge the scope to later type complete scrutiny, the AO is mandated to first form reasonable view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 119 of the Act. Even earlier in 1983 the Hon ble Kerala High Court in CIT Vs Malayala Manorama Co Ltd. reported in 143 ITR 29 has observed that circulars of general directions issued by the CBDT are binding u/s 119 of the Act on all officers and persons employed in the execution of the Act therefore any action or proceedings outstepping the scope shall render unlawful. Consistently same view has been propounded in plethora of judicial precedents including the cases reported in 187 CTR (SC) 297 : (2004) 267 ITR 272 (SC) CoC Vs Indian Oil Corporation Ltd. and 343 ITR 270 Catholic Syrian Bank Vs. CIT , and 295 ITR 0256 169 taxmann 0004 CIT Vs Best Plastics (P) Ltd. and 120 taxmann.com 167 CIT Vs Padmavati etc. 6. In the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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