SHRI SITA RAM SWAMI, JAIPUR V. ITO, WARD-4(5), JAIPUR

ITA 73/JPR/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3739 (ITAT-JAIPUR)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 16-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Principle of natural justice; Fair market value; Corroborative evidences; Competent authority; Assessment record; Set aside; Capital Gains
• Section: 69; 154; 143(3); 142(1); 143(2); 13; 119; 22; 20

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC HES A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 73/JP/2020 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2015-16 SHRI SITA RAM SWAMI C/O CA VINOD KUMAR GUPTA H-406B, AZAD MARG, C SCHEME, JAIPUR CUKE VS. THE ITO, WARD 4(5), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: EAGPS7606E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SH. VINOD KUMAR GUPTA (CA) JKTLO DH VKSJ LS @ REVENUE BY : MS. CHANCHAL MEENA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 24/02/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 27/02/2020 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-2, JAIPUR DATED 15.11.2019 WHEREIN THE ASSESSEE HAS TA KEN FOLLOWING GROUNDS OF APPEAL:- 1. THE IMPUGNED ADDITIONS MADE IN THE ORDER U/S 14 3(3) OF THE ACT, DATED 23.12.2017 IS BAD IN LAW AND ON FACTS OF THE CASE, FOR WANT OF JURISDICTION, PRINCIPAL OF NATURAL JUSTICE AND VARI OUS OTHER STATUTORY REASONS AND HENCE, KINDLY BE DELETED. 2. THE LD.CIT(A) ERRED IN LAW AS WELL AS ON THE FAC TS OF THE CASE IN CONFIRMING ACTION OF THE AO IN MAKING ADDITION OF R S. 10,00,000/- BY ALLEGING THAT INVESTMENT MADE IN THE PROPERTY IS UN EXPLAINED INVESTMENT U/S 69. THE ADDITION SO MADE AND CONFIRMED BY THE C IT(A) IS ILLEGAL, EXCESSIVE AND DESERVES TO BE DELETED IN FULL. 3. THE LD. CIT(A) ERRED IN LAW AS WELL AS ON THE FA CTS OF THE CASE IN INVOKING THE PROVISION OF SEC 115BBE. THE ACTION OF THE AO IN INVOKING ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 2 THE PROVISIONS OF SEC 1115BBE AND CONFIRMED BY THE CIT(A) IS ILLEGAL, EXCESSIVE AND DESERVES TO BE QUASHED. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF WHOLESALE TRADING AND RE PAIRS OF ELECTRONIC ITEMS. HE FILED HIS RETURN OF INCOME DECLARING TOTAL INCOM E OF RS. 2,05,830/- WHICH WAS SELECTED FOR LIMITED SCRUTINY UNDER CASS AND TH EREAFTER ASSESSMENT WAS COMPLETED U/S 143(3) DATED 23 RD DECEMBER, 2017 WHEREIN THE ADDITION OF RS. 10,00,000/- WAS MADE BEING UNEXPLAINED INVESTME NT IN PROPERTY U/S 69 OF THE ACT. ON APPEAL, THE ADDITION SO MADE HAS BEEN S USTAINED BY THE LD. CIT(A) AND AGAINST THE SAID FINDING, THE ASSESSEE IS IN AP PEAL BEFORE US. 3. DURING THE COURSE OF HEARING, THE LD. AR SUBMITT ED THAT THE CASE OF THE ASSESSEE WAS SELECTED FOR LIMITED SCRUTINY THROUGH CASS ON THE ISSUE OF WHETHER ANY CAPITAL GAIN/LOSS ON SALE OF PROPERTY HAS BEEN CORRECTLY SHOWN IN THE RETURN OF INCOME BY ASSESSEE AND IN THIS REGAR D, OUR REFERENCE WAS DRAWN TO THE ORDER SHEET ENTRY DATED 20.09.2017. IT WAS S UBMITTED THAT THE ASSESSEE DID NOT SELL ANY PROPERTY DURING THE YEAR, HENCE QU ESTION OF EARNING ANY CAPITAL GAINS AND SHOWING IN HIS RETURN OF INCOME DID NOT A RISE AT ALL AND SUBMISSION WAS ACCORDINGLY FILED WITH THE ASSESSING OFFICER AL ONG WITH THE COPY OF ITR/COMPUTATION AND COPY OF BANK STATEMENT WHICH WA S TAKEN ON RECORD AND ADMITTED BY THE ASSESSING OFFICER. IT WAS FURTHER S UBMITTED THAT ON 19.12.2017, THE ASSESSEE WAS ASKED WHETHER ANY IMMOVABLE PROPER TY WAS PURCHASED BY HIM AND ULTIMATELY, ADDITION WAS MADE U/S 69 OF THE ACT. IN THIS REGARD, IT WAS SUBMITTED THAT IF A CASE WAS SELECTED FOR LIMITED S CRUTINY UNDER CASS, THE ASSESSING OFFICER CANNOT EXCEED HIS JURISDICTION BE YOND THE ONE WHICH HAS BEEN CARVED OUT BY HIMSELF IN THE NOTICE ISSUED FOR LIMI TED SCRUTINY. IT WAS SUBMITTED THAT CBDT HAS ISSUED VARIOUS INSTRUCTIONS ON THIS I SSUE AND IN THE INSTANT YEAR ALSO, THE CBDT ISSUED INSTRUCTION NO. 5 OF 2016 DAT ED 14.07.2016 AS PER ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 3 WHICH, FOR CONVERTING A LIMITED SCRUTINY INTO COMPL ETE SCRUTINY, APPROVAL OF LD CIT WAS REQUIRED TO BE TAKEN BY THE ASSESSING OFFIC ER WHICH HAS NOT BEEN TAKEN IN THE PRESENT CASE. IT WAS ACCORDINGLY SUBMI TTED THAT IN VIEW OF THE SPECIFIC DIRECTION GIVEN BY CBDT, ONCE THE AO HAS T AKEN UP THE CASE FOR LIMITED SCRUTINY, HE CANNOT TRAVEL BEYOND THE ISSUE SELECTE D FOR SCRUTINY AND MAKING ADDITION U/S 69 OF THE ACT. IT WAS SUBMITTED THAT T HE ISSUE OF SCRUTINY WAS RELATING TO GAIN/LOSS ON SALE OF PROPERTY WHEREAS T HE ADDITION HAS BEEN MADE ON PURCHASE OF PROPERTY. THEREFORE, MAKING THE ADDI TION U/S 69 AND EVEN MAKING ANY INQUIRY AND ASKING QUESTIONS CONCERNING WITH THE ISSUE OF PURCHASE WITHOUT REQUISITE APPROVALS WAS AN IMPROPER EXERCIS E OF JURISDICTION BY THE AO AND THEREFORE, THE PRESENT PROCEEDINGS SHOULD BE QU ASHED FOR WANT OF REQUISITE JURISDICTION. IN SUPPORT, RELIANCE WAS PLACED ON TH E DECISIONS IN THE CASE OF LATE SMT. GURBACHAN KAUR VS DCIT (IN ITA NO. 692/JP/2019 VIDE ORDER DATED 05.12.2019) , MANJU KAUSHIK VS. DCIT (IN ITA NO. 1419/JP/2019 VIDE ORDER DATED 09.12.2019) , RAVI PRAKASH KHANDELWAL VS. DCIT (IN ITA NO. 665/LKW/2017 DATED 08.11.2019) AND SHASHI BHUSHAN MAJOOR VS. ITO (IN ITA NO. 1590/PUNE/2018 DATED 04.04.2019). 4. IT WAS FURTHER SUBMITTED THAT DUE TO NON APPEARA NCE ON THE LAST SCHEDULED DATE OF HEARING FIXED FOR 07.11.2019, TH E LD. CIT(A) HAD DECIDED THE APPEAL WITHOUT GIVING ANY FINAL OPPORTUNITY OF HEAR ING TO THE ASSESSEE. FURTHER EVEN ON MERITS, THE MATTER HAS NOT BEEN DECIDED BY THE LD. CIT(A) WHEREIN THE LIMITED SCRUTINY WAS INITIATED UNDER CASS TO EXAMIN E CORRECTNESS CAPITAL GAINS/LOSS ON SALE OF PROPERTY WHEREAS ADDITION HAS BEEN MADE U/S 69 TREATING THE INVESTMENT IN IMMOVABLE PROPERTY AS UNEXPLAINED INVESTMENT. 5. PER CONTRA, THE LD. DR IS HEARD WHO HAS SUBMITTE D THAT IT IS NOT IN DISPUTE THAT THE MATTER WAS SELECTED FOR LIMITED SCRUTINY F OR EXAMINING CAPITAL GAINS ON SALE OF PROPERTY. HOWEVER, THE MATTER OF PURCHASE O F THE PROPERTY IS ALSO ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 4 EMANATING FROM THE SAME ISSUE FOR WHICH THE MATTER WAS SELECTED FOR LIMITED SCRUTINY AS ULTIMATELY THE ASSESSEE WILL BE MAKING THE INVESTMENT IN THE PURCHASE OF PROPERTY FROM THE SALE CONSIDERATION SO RECEIVED. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE HAS NOT RAISED ANY SUCH OBJECTION BEFORE THE ASSESSING OFFICER AND EVEN BEFORE THE LD. CIT(A) AN D THEREFORE, THE CONTENTION SO ADVANCED BY THE ASSESSEE SHOULD NOT BE ACCEPTED. IT WAS FURTHER SUBMITTED THAT SUFFICIENT OPPORTUNITY HAVE BEEN PROVIDED BY T HE LD. CIT(A). HOWEVER, THE ASSESSEE THROUGH ITS AR HAS SOUGHT ADJOURNMENT FROM TIME TO TIME AND THEREFORE, THE LD. CIT(A) HAS PASSED THE ORDER EX-PARTE QUA THE ASSESSEE BASIS MATERIAL AVAILABLE ON RECORD. SHE ACCORDINGLY SUPPO RTED THE FINDINGS OF THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 7. IN GROUND NO. 1, THE ASSESSEE HAS CHALLENGED THE JURISDICTION OF ASSESSING OFFICER BY PASSING THE IMPUGNED ORDER U/S 143(3) FOR THE REASON THAT CASE WAS INITIALLY SELECTED FOR LIMITED SCRUTINY AN D WITHOUT SEEKING PERMISSION FROM THE COMPETENT AUTHORITY TO CONVERT LIMITED SCR UTINY INTO COMPLETE SCRUTINY, THE ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER IN RESPECT OF ANOTHER TRANSACTION TOWARDS UNEXPLAINED INVESTMENT IN PURCH ASE OF PROPERTY WHEREAS NO ADDITION HAS BEEN MADE TOWARDS THE TRANSACTION P ERTAINING TO SALE OF IMMOVABLE PROPERTY FOR WHICH THE MATTER WAS INITIAL LY SELECTED FOR LIMITED SCRUTINY. 8. IN THIS REGARD, THE UNDISPUTED FACTS WHICH ARE E MERGING FROM THE RECORDS ARE THAT THE MATTER WAS SELECTED FOR LIMITED SCRUTI NY TO EXAMINE CAPITAL GAIN ON SALE OF PROPERTY AS IT APPARENT FROM THE FOLLOWING NARRATIONS BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER DATED 23.12.2017 WH ICH READS AS UNDER: ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 5 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, T HE ISSUE ON WHICH CASE WAS SELECTED FOR LIMITED SCRUTINY WAS INFORMED TO THE ASSESSEE, WHICH IS AS UNDER: (I) WHETHER CAPITAL GAINS/LOSS OF SALE OF PROPERTY HAS BEEN CORRECTLY SHOWN IN THE RETURN OF INCOME. ASSESSEE WAS FURTHER ASKED TO EXPLAIN ABOVE REASONS WITH SUPPORTING EVIDENCE. DURING THE COURSE OF ASSESSMENT PROCEEDIN G, ASSESSEE SUBMITTED A COPY OF RETURN OF INCOME, COMPUTATION OF INCOME, BA NK STATEMENT. THE ASSESSEE ALSO SUBMITTED THAT HE HAVE NOT SOLD ANY I MMOVABLE PROPERTY DURING THE YEAR UNDER CONSIDERATION. HENCE THE QUESTION OF DECLARING LONG TERM CAPITAL GAIN DOES NOT ARISE. HOWEVER, DURING PROCEE DINGS VIDE ORDER SHEET ENTRY DATED 19.12.2017, IT WAS ASKED WHETHER ANY IM MOVABLE PROPERTY WAS PURCHASED IN THE YEAR UNDER CONSIDERATION BOTH ASSE SSEE AS WELL AS AR DENIED FOR PURCHASE OF IMMOVABLE PROPERTY. HOWEVER, ON REQ UEST TO LAST ADJOURNMENT WAS GRANTED FOR 20.12.2017. BUT ON GIVEN DATE NO CO MPLIANCE WAS MADE. ON BEING HEARD, NOTICE ISSUED U/S 142(1) ALONG WITH A SHOW CAUSE FINAL OPPORTUNITY LETTER ON 20.12.2017 AND ASSESSEE WAS A SKED TO EXPLAIN THE SOURCE OF INVESTMENT MADE IN IMMOVABLE PROPERTY. 9. THEREAFTER, THE ASSESSEE SUBMITTED BEFORE THE AS SESSING OFFICER THAT HE HAS NOT SOLD ANY IMMOVEABLE PROPERTY DURING THE YEA R, THE ASSESSING OFFICER HAS TAKEN THE SAID SUBMISSIONS ON RECORD AND HAS NO T RECORDED ANY ADVERSE FINDINGS IN THIS REGARD. IN OTHER WORDS, THE ASSES SING OFFICER HAS ACCEPTED THE EXPLANATION OF THE ASSESSEE THAT THERE WAS NO TRANS ACTION OF ANY SALE OF IMMOVABLE PROPERTY BY THE ASSESSEE DURING THE FINAN CIAL YEAR RELEVANT TO IMPUGNED ASSESSMENT YEAR AND THEREFORE, THE QUESTIO N OF EARNING ANY CAPITAL GAIN AND NOT SHOWING THE SAME IN RETURN OF INCOME D ID NOT ARISE AT ALL. THE ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 6 MATTER FOR WHICH LIMITED SCRUTINY WAS TAKEN UP, THE REFORE, ATTAINED FINALITY AND NO ADDITION WAS MADE BY THE ASSESSING OFFICER. 10. THE ASSESSING OFFICER HAS THEREAFTER PROCEEDED TO EXAMINE WHETHER THE ASSESSEE HAS PURCHASED ANY IMMOVABLE PROPERTY AS AP PARENT FROM THE ORDER SHEET ENTRY DATED 19.12.2017 AND AN ADDITION OF RS 10 LACS HAS THEREAFTER BEEN MADE U/S 69 OF THE ACT TOWARDS UNEXPLAINED INVESTME NT IN THE PROPERTY. WE FIND THAT THIS TRANSACTION OF PURCHASE OF PROPERTY IS NOT EMANATING FROM THE SAME ISSUE FOR WHICH THE MATTER WAS SELECTED FOR LI MITED SCRUTINY AS THE ASSESSEE HAS NOT SOLD ANY IMMOVEABLE PROPERTY DURIN G THE YEAR AND THEREFORE, THE QUESTION OF MAKING THE INVESTMENT IN THE PURCHA SE OF PROPERTY FROM THE SALE CONSIDERATION SO RECEIVED DOESNT ARISE AND TH ERE IS NOTHING ON RECORD WHICH SUPPORT SUCH CONTENTION AS SO ADVANCED BY THE LD DR. THEREFORE, IT IS AN INDEPENDENT TRANSACTION OF PURCHASE OF PROPERTY FOR WHICH ADDITION HAS BEEN MADE U/S 69 OF THE ACT. 11. THE QUESTION THAT ARISE FOR CONSIDERATION IS WH ERE THE ASSESSING OFFICER WISHES TO EXPAND THE SCOPE OF ENQUIRY BEYOND THE MA TTER FOR WHICH THE CASE OF THE ASSESSEE WAS SELECTED FOR LIMITED SCRUTINY, WHE THER HE HAS TAKEN THE REQUISITE PERMISSION FROM THE COMPETENT AUTHORITY F OR CONVERTING A LIMITED SCRUTINY INTO COMPLETE SCRUTINY OR PROCEEDING BEYON D THE MATTER FOR WHICH THE CASE OF THE ASSESSEE WAS SELECTED FOR LIMITED SCRUT INY. IN THE INSTANT CASE, WE FIND THAT THE ASSESSING OFFICER NEITHER IN THE ASSE SSMENT ORDER NOR IN THE ASSESSMENT PROCEEDINGS (AS APPARENT FROM THE NOTING S IN THE ORDER SHEET PLACE ON RECORD) HAS STATED THAT HE HAS SOUGHT AND HAS BE EN GRANTED ANY APPROVAL BY THE APPROPRIATE AUTHORITY FOR CONVERTING THE LIM ITED SCRUTINY INTO COMPLETE SCRUTINY OR TRAVELLING BEYOND THE MATTER FOR WHICH THE MATTER WAS INITIALLY SELECTED FOR LIMITED SCRUTINY. FURTHER, NOTHING HA S BEEN BROUGHT TO OUR NOTICE DURING THE COURSE OF HEARING BY THE LD DR THAT SUCH APPROVAL WAS SOUGHT BY THE ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 7 ASSESSING OFFICER AND HAS BEEN GRANTED BY THE APPRO PRIATE AUTHORITY. THEREFORE, WE FIND THAT THE AO HAS TAKEN UP THE FRESH ISSUE OF UNEXPLAINED INVESTMENT FOR PURCHASE OF IMMOVABLE PROPERTY, WHICH HAS NO CONNEC TION WITH THE ISSUE OF SALE OF IMMOVABLE PROPERTY FOR WHICH THE MATTER WAS SELECTED FOR LIMITED SCRUTINY, WITHOUT SEEKING PRIOR APPROVAL OF THE COM PETENT AUTHORITY. THE ADDITION SO MADE U/S 69 IS LIABLE TO BE QUASHED AS THE ORDER PASSED BY THE AO WOULD BE NULLITY AS BEYOND HIS JURISDICTION IN ABSE NCE OF REQUISITE APPROVAL FROM THE COMPETENT AUTHORITY. THE INSTRUCTIONS ISSUED B Y CBDT FROM TIME TO TIME ARE CLEAR ON THIS POINT. DURING THE COURSE OF HEARI NG, OUR REFERENCE WAS DRAWN TO CBDT INSTRUCTIONS NO. 5 OF 2016 DATED 14.07.2016 , THE CONTENTS THEREOF READ AS UNDER: SUBJECT: DIRECTION REGARDING SCOPE OF ENQUIRY IN C ASES UNDER LIMITED SCRUTINY SELECTED THROUGH CASS 2015 & 2016-REGD.- VIDE INSTRUCTION NO. 20/2015 DATED 29.12.2015 IN FILE OF EVEN NUMBER, BOARD HAS LAID DOWN STANDARD OPERATING PROCEDURE FO R HANDLING OF CASES UNDER LIMITED SCRUTINY WHICH WERE SELECTED THROUG H COMPUTER AIDED SCRUTINY SELECTION IN CASS CYCLE 2015. IN THESE C ASES, IT WAS STATED THAT THE GENERAL SCOPE OF ENQUIRY IN SCRUTINY PROCEEDING S SHOULD BE RESTRICTED TO THE RELEVANT PARAMETERS WHICH FORMED THE BASIS F OR SELECTING THE CASE FOR SCRUTINY. HOWEVER, IN REVENUE POTENTIAL CASES, IT WAS FURTHER PROVIDED THAT COMPLETE SCRUTINY COULD BE CONDUCTED, IF THE RE WAS POTENTIAL ESCAPEMENT OF INCOME ABOVE A PRESCRIBED MONETARY LI MIT, SUBJECT TO THE APPROVAL OF ADMINISTRATIVE PR. CIT/CIT/PR. DIT/DIT. 2. IN ORDER TO ENSURE THAT MAXIMUM OBJECTIVITY IS M AINTAINED IN CONVERTING A CASE FALLING UNDER LIMITED SCRUTINY INTO A COMPLETE SCRUTINY CASE, THE MATTER HAS BEEN FURTHER EXAMINE D AND IN PARTIAL MODIFICATION TO PARA 3(D) OF THE EARLIER ORDER DATED 29.12.2015 , BOARD HEREBY LAYS DOWN THAT WHILE PROPOSING TO TAKE UP C OMPLETE SCRUTINY IN ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 8 A CASE WHICH WAS ORIGINALLY EARMARKED FOR LIMITED SCRUTINY, THE ASSESSING OFFICER (AO) SHALL BE REQUIRED TO FORM A REASONABLE VIEW THAT THERE IS POSSIBILITY OF UNDER ASSESSMENT OF INCOME IF THE CASE IS NOT EXAMINED UNDER COMPLETE SCRUTINY. IN THIS REGARD, THE MONETARY LIMITS AND REQUIREMENT OF ADMINISTRATIVE APPROVAL FROM PR. CIT/CIT/PR. DIT/DIT, AS PRESCRIBED IN PARA 3(D) OF EARLIER INSTRUCTION DATED 29.12.2015 , SHALL CONTINUE TO REMAIN APPLICABLE. 3. FURTHER, WHILE FORMING THE REASONABLE VIEW, THE ASSESSING OFFICER WOULD ENSURE THAT: A. THERE EXISTS CREDIBLE MATERIAL OR INFORMATION AV AILABLE ON RECORD FOR FORMING SUCH VIEW; B. THIS REASONABLE VIEW SHOULD NOT BE BASED ON MERE SUSPICION, CONJECTURE OR UNRELIABLE SOURCE; AND C. THERE MUST BE A DIRECT NEXUS BETWEEN THE AVAILAB LE MATERIAL AND FORMATION OF SUCH VIEW. 4. IT IS FURTHER CLARIFIED THAT IN CASES UNDER LIM ITED SCRUTINY, THE SCRUTINY ASSESSMENT PROCEEDINGS WOULD INITIALLY BE CONFINED ONLY TO ISSUES UNDER LIMITED SCRUTINY AND QUESTIONNAIRES, ENQUIRY, INV ESTIGATION ETC. WOULD BE RESTRICTED TO SUCH ISSUES. ONLY UPON CONVERSION OF CASE TO COMPLETE SCRUTINY AFTER FOLLOWING THE PROCEDURE OUTLINED AB OVE, THE AO MAY EXAMINE THE ADDITIONAL ISSUES BESIDES THE ISSUE(S) INVOLVED IN LIMITED SCRUTINY. THE AO SHALL ALSO EXPEDITIOUSLY INTIMATE THE TAXPAYER CONCERNED REGARDING CONDUCTING COMPLETE SCRUTINY IN SUCH CASES. 5. IT IS ALSO CLARIFIED THAT ONCE A CASE HAS BEEN C ONVERTED TO COMPLETE SCRUTINY, THE AO CAN DEAL WITH ANY ISSUE EMERGING FROM ONGOING SCRUTINY PROCEEDINGS NOTWITHSTANDING THE FACT THAT THE REASO N FOR SUCH ISSUE HAVE NOT BEEN INCLUDED IN THE NOTE. 6. TO ENSURE PROPER MONITORING IN CASES WHICH HAVE BEEN CONVERTED FROM LIMITED SCRUTINY TO COMPLETE SCRUTINY, IT IS SU GGESTED, THAT PROVISIONS ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 9 OF SECTION 144A OF THE ACT MAY BE INVOKED IN SUITAB LE CASES. TO PREVENT POSSIBILITY OF FISHING AND ROVING ENQUIRIES IN SUCH CASES, IT IS DESIRABLE THAT THESE CASES SHOULD INVARIABLY BE PICKED UP WHI LE CONDUCTING REVIEW OR INSPECTION BY THE ADMINISTRATIVE AUTHORITIES. 7. THE ABOVE INSTRUCTION SHALL BE APPLICABLE FROM T HE DATE OF ITS ISSUE AND WOULD COVER THE CASES SELECTED UNDER CASS 2015 WHICH ARE PENDING SCRUTINY CASES AS WELL AS CASES SELECTED/BEING SELE CTED UNDER THE CASS 2016. 8. THE CONTENTS OF THIS INSTRUCTION MAY BE BROUGHT TO THE NOTICE OF ALL FOR NECESSARY COMPLIANCE. 9. HINDI VERSION TO FOLLOW. (ROHIT GARG) DEPUTY SECRETARY TO THE GOVERNMENT OF INDIA 12. A PERUSAL OF THE AFORESAID INSTRUCTION SHOWS TH AT IN CASES UNDER LIMITED SCRUTINY, THE SCRUTINY ASSESSMENT PROCEEDINGS WOUL D INITIALLY BE CONFINED ONLY TO ISSUES UNDER LIMITED SCRUTINY AND ONLY UPON CO NVERSION OF CASE TO COMPLETE SCRUTINY AFTER FOLLOWING THE PROCEDURE L AID DOWN AND SEEKING PRIOR APPROVAL FROM THE COMPETENT AUTHORITY, THE AO MAY E XAMINE THE ADDITIONAL ISSUES BESIDES THE ISSUE(S) INVOLVED IN LIMITED SC RUTINY. THE ASSESSING OFFICER CAN THUS WIDEN THE SCOPE OF SCRUTINY WHERE THE MATT ER WAS INITIALLY SELECTED FOR SCRUTINY ASSESSMENT. HOWEVER, THE CONDITION PRECEDE NT FOR SUCH ACTION OF THE ASSESSING OFFICER IS THAT HE HAS TO FOLLOW THE PROC EDURE SO LAID DOWN AND SEEK PRIOR APPROVAL OF THE COMPETENT AUTHORITIES. IN THE INSTANT CASE, IT IS AN ADMITTED FACT THAT NO SUCH APPROVAL HAS BEEN TAKEN BY THE ASSESSING OFFICER. IT IS THEREFORE, A CASE WHERE THE CBDT INSTRUCTIONS WH ICH ARE BINDING ON THE ASSESSING OFFICER HAVE NOT BEEN FOLLOWED BY HIM. ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 10 13. FURTHER, WE FIND THAT IT IS A CONSISTENT POSITI ON TAKEN BY VARIOUS BENCHES OF THE TRIBUNAL INCLUDING JAIPUR BENCHES THAT WHERE THE ASSESSING OFFICER HAS TAKEN UP FRESH ISSUE WITHOUT CONVERTING LIMITED SCR UTINY TO COMPLETE SCRUTINY BY TAKING PRIOR APPROVAL OF THE COMPETENT AUTHORITY, T HEN THE SAID ORDER PASSED BY THE ASSESSING OFFICER WILL BE NULLITY AS BEYOND HIS JURISDICTION. IN THIS REGARD, WE REFER TO RECENT DECISION OF THIS BENCH IN THE CA SE OF LATE SMT. GURBACHAN KAUR VS. DCIT (SUPRA) WHEREIN THE RELEVANT FINDINGS READ AS UNDER:- 7. ONCE THE ISSUE TAKEN UP BY THE A.O. WAS BEYOND THE SCOPE OF LIMITED SCRUTINY UNDER CASS THEN UNTIL AND UNLESS THE LIMIT ED SCRUTINY IS CONVERTED INTO COMPREHENSIVE SCRUTINY BY TAKING AN APPROVAL OF THE COMPETENT AUTHORITY, THE SAID ISSUE OF DETERMINATIO N OF FAIR MARKET VALUE OF THE PROPERTY AS ON 01/04/1081 IS BEYOND THE JURI SDICTION OF THE A.O. UNDER THE LIMITED SCRUTINY. SINCE THIS ISSUE WAS NO T RAISED BY THE ASSESSEE BEFORE THE LOWER AUTHORITIES AND IT REQUIR ES VERIFICATION OF THE ASSESSMENT RECORD TO ASCERTAIN WHETHER THE A.O. OBT AINED THE APPROVAL OF THE COMPETENT AUTHORITY FOR CONVERSION OF THE LI MITED SCRUTINY TO THE COMPREHENSIVE SCRUTINY. IF THE ISSUE OF DETERMINATI ON OF FAIR MARKET VALUE AS ON 01/04/1981 IS TAKEN UP BY THE A.O. WITHOUT EX PANSION OR CONVERSION OF THE LIMITED SCRUTINY TO COMPREHENSIVE SCRUTINY THEN SUCH ACT OF THE A.O. IS BEYOND HIS JURISDICTION AND THE ORDER PASSED BY THE A.O. U/S 154 R.W.S 155(15) OF THE ACT WOULD BE ILLE GAL AND VOID AB INITIO. THIS TRIBUNAL HAS TAKEN A CONSISTENT VIEW ON THIS I SSUE IN A SERIES OF DECISIONS RELIED UPON BY THE LD. COUNSEL FOR THE AS SESSEE. IN THE CASE OF CBS INTERNATIONAL PROJECTS P. LTD. VS CIT (SUPRA), THE DELHI BENCHES OF THE TRIBUNAL HAS CONSIDERED RELEVANT INSTRUCTIONS I SSUED BY THE CBDT FOR LIMITED SCRUTINY UNDER CASS AND HELD IN PARA 13 TO 16 AS UNDER: 13. CBDT INSTRUCTION NO. 20/2015 IS AS UNDER: ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 11 SCRUTINY ASSESSMENTS-SOME IMPORTANT ISSUES AND SCO PE OF SCRUTINY IN CASES SELECTED THROUGH COMPUTER AIDED SCRUTINY SELE CTION (CASS)-REG. THE CENTRAL BOARD OF DIRECT TAXES (CBDT), VIDE IN STRUCTION NO.7/2014 DATED 26.09.2014 HAD CLARIFIED THE EXTENT OF ENQUIR Y IN CERTAIN CATEGORY OF CASES SPECIFIED THEREIN, WHICH ARE SELECTED FOR SCRUTINY THROUGH CASS. FURTHER CLARIFICATIONS HAVE BEEN SOUGHT REGARDING T HE SCOPE AND APPLICABILITY OF THE AFORESAID INSTRUCTION TO CASES BEING SCRUTINIZED. 2. IN ORDER TO FACILITATE THE CONDUCT OF SCRUTINY A SSESSMENTS AND TO BRING FURTHER CLARITY ON SOME OF THE ISSUES EMERGING FROM THE AFORESAID INSTRUCTION, FOLLOWING CLARIFICATIONS ARE BEING MAD E: I. YEAR OF APPLICABILITY: AS STATED IN THE INSTRUCT ION NO.7/2014, THE SAID INSTRUCTION IS APPLICABLE ONLY IN RESPECT OF THE CA SES SELECTED FOR SCRUTINY THROUGH CASS-2014. II. WHETHER THE SAID INSTRUCTION IS APPLICABLE TO A LL CASES SELECTED UNDER CASS: THE SAID INSTRUCTION IS APPLICABLE WHERE THE CASE IS SELECTED FOR SCRUTINY UNDER CASS ONLY ON THE PARAMETER(S) OF AIR /CIB/26AS DATA. IF A CASE HAS BEEN SELECTED UNDER CASS FOR ANY OTHER REASON(S)/PARAMETER(S) BESIDES THE AIR/CIB/26AS DAT A, THEN THE SAID INSTRUCTION WOULD NOT APPLY. III. SCOPE OF ENQUIRY: SPECIFIC ISSUE BASED ENQUIRY IS TO BE CONDUCTED ONLY IN THOSE SCRUTINY CASES WHICH HAVE BEEN SELECT ED ON THE PARAMETER(S) OF AIR/CIB/26AS DATA. IN SUCH CASES, T HE ASSESSING OFFICER, SHALL ALSO CONFINE THE QUESTIONNAIRE ONLY TO THE SPECIFIC ISSUES PERTAINING TO AIR/CIB/26AS DATA. WIDER SCRUTINY IN THESE CASES CAN ONLY BE CONDUCTED AS PER THE GUIDELINES AND PROCEDURES S TATED IN INSTRUCTION NO. 7/2014. ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 12 IV. REASON FOR SELECTION: IN CASES UNDER SCRUTINY F OR VERIFICATION OF AIR/CIB/26AS DATA, THE ASSESSING OFFICER HAS TO INT IMATE THE REASON FOR SELECTION OF CASE FOR SCRUTINY TO THE ASSESSEE CONC ERNED. 3. AS FAR AS THE RETURNS SELECTED FOR SCRUTINY THRO UGH CASS-2015 ARE CONCERNED, TWO TYPE OF CASES HAVE BEEN SELECTED FOR SCRUTINY IN THE CURRENT FINANCIAL YEAR-- ONE IS LIMITED SCRUTINY AND OTHER IS COMPLETE SCRUTINY. THE ASSESSEES CONCERNED HAVE DULY BEEN I NTIMATED ABOUT THEIR CASES FALLING EITHER IN LIMITED SCRUTINY OR COMP LETE SCRUTINY THROUGH NOTICES ISSUED UNDER SECTION 143(2) OF THE INCOME-T AX ACT, 1961 (ACT). THE PROCEDURE FOR HANDLING LIMITED SCRUTINY CASES SHALL BE AS UNDER: A. IN LIMITED SCRUTINY CASES, THE REASONS/ISSUES SHALL BE FORTHWITH COMMUNICATED TO THE ASSESSEE CONCERNED. B. THE QUESTIONNAIRE UNDER SECTION 142 (1) OF THE A CT IN LIMITED SCRUTINY CASES SHALL REMAIN CONFINED ONLY TO THE S PECIFIC REASONS/ISSUES FOR WHICH CASE HAS BEEN PICKED UP FOR SCRUTINY. FUR THER, THE SCOPE OF ENQUIRY SHALL BE RESTRICTED TO THE LIMITED SCRUTIN Y ISSUES. C. THESE CASES SHALL BE COMPLETED EXPEDITIOUSLY IN A LIMITED NUMBER OF HEARINGS. D. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN LIMITED SCRUTINY CASES, IF IT COMES TO THE NOTICE OF THE ASSESSING O FFICER THAT THERE IS POTENTIAL ESCAPEMENT OF INCOME EXCEEDING RS. FIVE L AKHS (FOR METRO CHARGES, THE MONETARY LIMIT SHALL BE RS. TEN LAKHS) REQUIRING SUBSTANTIAL VERIFICATION ON ANY OTHER ISSUE(S), THEN, THE CASE MAY BE TAKEN UP FOR COMPLETE SCRUTINY WITH THE APPROVAL OF THE PR. CI T/CIT CONCERNED. HOWEVER, SUCH AN APPROVAL SHALL BE ACCORDED BY THE BY THE PR. CIT/CIT IN WRITING AFTER BEING SATISFIED ABOUT MERITS OF TH E ISSUE(S) NECESSITATING COMPLETE SCRUTINY IN THAT PARTICULAR CASE. SUCH C ASES SHALL BE MONITORED BY THE RANGE HEAD CONCERNED. THE PROCEDUR E INDICATED AT POINTS (A), (B) AND (C) ABOVE SHALL NO LONGER REMAI N BINDING IN SUCH CASES. (FOR THE PRESENT PURPOSE, METRO CHARGES WO ULD MEAN DELHI, MUMBAI, CHENNAI, KOLKATA, BENGALURU, HYDERABAD AND AHMEDABAD). ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 13 4. THE BOARD FURTHER DESIRES THAT IN ALL CASES UNDE R SCRUTINY, WHERE THE ASSESSING OFFICER PROPOSES TO MAKE ADDITIONS OR DIS ALLOWANCES, THE ASSESSEE WOULD BE GIVEN A FAIR OPPORTUNITY TO EXPLA IN HIS POSITION ON THE PROPOSED ADDITIONS/DISALLOWANCES IN ACCORDANCE WITH THE PRINCIPLE OF NATURAL JUSTICE. IN THIS REGARD, THE ASSESSING OFFI CER SHALL ISSUE AN APPROPRIATE SHOW-CAUSE NOTICE DULY INDICATING THE R EASONS FOR THE PROPOSED ADDITIONS/DISALLOWANCES ALONG WITH NECESSA RY EVIDENCES/REASONS FORMING THE BASIS OF THE SAME. BE FORE PASSING THE FINAL ORDER AGAINST THE PROPOSED ADDITIONS/DISALLOW ANCES, DUE CONSIDERATION SHALL BE GIVEN TO THE SUBMISSIONS MAD E BY THE ASSESSEE IN RESPONSE TO THE SHOW-CAUSE NOTICE. 5. THE CONTENTS OF THIS INSTRUCTION SHOULD BE IMMED IATELY BROUGHT TO THE NOTICE OF ALL CONCERNED FOR STRICT COMPLIANCE. 6. HINDI VERSION TO FOLLOW. SD/- (ANKITA PANDEY) UNDER SECRETARY TO GOVERNMENT OF INDIA 14. WITH INSTRUCTION 7 OF 2014, THE BOARD HAS MADE IT SPECIFICALLY CLEAR THAT THE SCOPE OF ENQUIRY SHOULD BE LIMITED TO VERI FICATION OF THE PARTICULAR ASPECTS ONLY. IT HAS ALSO BEEN DIRECTED THAT AN APPROVAL IS REQUIRED FROM THE PCIT/DIT, IN WRITING, AFTER BEING SPECIFIC ABOUT THE MERITS OF THE OTHER ISSUES FOR COMPREHENSIVE SCRUTI NY. 15. THE SAID INSTRUCTION READS AS UNDER: INSTRUCTION NO. 7/2014 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CBDT) ROOM NO. 143E, NORTH-BLOCK, NEW-DELHI DATED THE 26 TH OF SEPTEMBER, 2014 TO AU PR. CHIEF-COMMISSIONERS OF INCOME-TAX/CHIEF C OMMISSIONERS OF INCOME- TAX A ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 14 ALL PR. DIRECTORS-GENERAL OF INCOME-TAX/DIRECTORS-G ENERAL OF INCOME-TAX SIR/MADAM, SUBJECT: - SCOPE OF ENQUIRY IN CASES SELECTED FOR S CRUTINY DURING THE FINANCIAL YEAR 2014-2015 ON BASIS OF AIR/C1B /26AS MISMATCH R EGARDING IT HAS COME TO THE NOTICE OF THE BOARD THAT DURING THE SCRUTINY ASSESSMENT PROCEEDINGS SOME OF THE AOS ARE ROUTINELY CALLING F OR INFORMATION WHICH IS NOT RELEVANT, FOR ENQUIRY INTO THE ISSUES TO BE CONSIDE RED. THIS HAS BEEN CAUSING UNDUE HARASSMENT TO THE TAXPAYERS AND HAS ALSO DRAW N ADVERSE CRITICISM FROM SEVERAL QUARTERS. FURTHER, FEEDBACK AND ANALYSIS OF SUCH ORDERS INDICATES THAT MANY TIMES THE CORE ISSUES, WHICH FORMED THE BASIS OF SELECTION OF THE CASE FOR SCRUTINY WERE NOT EXAMINED PROPERLY. SUCH INSTANCES PRIMARILY OCCURRED IN CASES SELECTED FOR SCRUTINY UNDER COMPUTER AIDED SC RUTINY SELECTION ('CASS') FOR VERIFICATION OF SPECIFIC INFORMATION OBTAINED F ROM THIRD PARTY SOURCES WHICH APPARENTLY DID NOT MATCH WITH THE DETAILS SUBMITTED BY THE TAX AVER IN THE RETURN OF-INCOME. 2. THEREFORE, FOR PROPER ADMINISTRATION OF THE INCO ME-TAX ACT, 1961 ('ACT'), CENTRAL BOARD OF DIRECT TAXES, BY VIRTUE OF ITS POW ERS UNDER SECT ON 119 OF THE ACT, IN SUPERSESSION OF EARLIER INSTRUCTIONS/GUIDEL INES ON THIS SUBJECT, HEREBY DIRECTS THAT THE CASES SELECTED FOR SCRUTINY DURING THE FINANCIAL YEAR 2014- 20(15 UNDER CASS, ON THE BASIS OF EITHER AIR DATA O R CIB INFORMATION OR FOR NON RE-CONCILIATION WITH 26AS DATA THE SCOPE OF ENQ UIRY SHOULD BE LIMITED TO VERIFICATION OF THESE ARE PARTICULAR ASPECTS ONLY. THEREFORE, IN SUCH CASES, AN ASSESSING OFFICER HALL CONFINE THE QUESTIONNAIRE AN D SUBSEQUENT ENQUIRY OR VERIFICATION ONLY TO THESE SPECIFIC POINT(S) ON THE BASIS OF WHICH THE PARTICULAR RETURN HAS BEEN SELECTED FOR SCRUTINY. ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 15 3. THE REASON(S) FOR SELECTION OF CASES UNDER CASS ARE DISPLAYED TO THE ASSESSING OFFICER IN AST APPLICATION AND NOTICE U/S 143(2), AFTER GENERA ION FROM AST, IS ISSUED TO THE TAXPAYER WITH THE REMARK 'SELECTED UNDER COMPUTER AIDED SCRUTINY SELECTION (CASS)'. THE FUNCTIONALITY IN AST IS BEING MODIFIED SUITABLY TO FLAG THE REASONS FOR SCRUTINY SELECTION IN AIR/CIB/26AS CASES. THIS FUNCTIONALITY IS EXPECTED TO BE OPERATIONALISED BY 15TH OCTOBER, 2014. FURTHER, THE ASSESSING OFFICER WHILE ISSUING NOTICE UNDER SE CTION 142(1) OF THE ACT WHICH IS ENCLOSED WITH THE FIRST QUESTIONNAIRE WOULD PROC EED TO VERIFY ONLY THE SPECIFIC ASPECTS REQUIRING EXAMINATION/VERIFICATION. IN SUCH CASES, ALL EFFORTS WOULD BE MAD TO ENSURE THAT ASSESSMENT PROCEEDINGS ARE COMPL ETED EXPEDITIOUSLY IN MINIMUM POSSIBLE NUMBER OF HEARINGS WITHOUT UNNECES SARILY DRAGGING THE CASE TILL THE TIME-BARING DATE. 4. IN CASE, DURING THE COURSE OF ASSESSMENT PROCEED INGS IT IS FOUND THAT THERE IS POTENTIAL ESCAPEMENT OF INCOME EXCEEDING RS. 10 LAKHS (F NON -METRO CHARGES, THE MONETARY LIMIT SHALL BE RS. 5 LAKHS) O N ANY OTHER ISSUE(S) APART FROM THE AIR/CIB/26AS INFORMATION BASED ON 14 WHICH THE CASE WAS ELECTED UNDER CASS REQUIRING SUBSTANTIAL VERIFICATION, THE CASE MAY BE TAKEN UP FOR COMPREHENSIVE SCRUTINY WITH THE APPROVAL OF THE PR. CIT/DIT CONCERNED. HOWEVER, SUCH AN APPROVAL SHALL BE ACCORDED BY THE PR. CIT/DIT IN WRITING AFTER BEING SATISFIED ABOUT MERITS OF THE ISSUE(S) NECESSITATING WIDER AND DETAILED SCRUTINY IN THE CASE. CASES SO TAKEN UP FO R DETAILED SCRUTINY SHALL BE MONITORED BY THE IT. CIT/ADDL. CIT CONCERNED. 5. THE CONTENTS OF THIS INSTRUCTION SHOULD BE IMMED IATELY BROUGHT TO THE NOTICE OF ALL CONCERNED FOR STRICT COMPLIANCE. 6. HINDI VERSION TO FOLLOW. (ROHIT GARG) DEPUT Y SECRETARY TO THE GOVERNMENT OF INDIA ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 16 16. A PERUSAL OF THE AFORESAID INSTRUCTION SHOWS TH AT THE ASSESSING OFFICER CAN WIDEN THE SCOPE OF SCRUTINY EVEN IF IT IS SELECTED FOR SCRUTINY ASSESSMENT UNDER CASS. HOWEVER, THE CONDITION PRECEDENT FOR SUCH ACT ION OF THE ASSESSING OFFICER IS THAT HE HAS TO SEEK PRIOR APPROVAL OF TH E HIGHER AUTHORITIES. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE ASSESSING OF FICER HAS NOT MENTIONED AS TO WHEN THE PERMISSION FROM THE PCIT WAS SOUGHT TO MAKE FURTHER ENQUIRIES IN THE CASE OF THE ASSESSEE. CONSIDERING THE FACTS OF THE CASE IN TOTALITY, IN THE LIGHT OF THE CBDT INSTRUCTIONS MENTIONED HEREINABOV E, QUA NOTICE U/S 143(2) OF THE ACT, WE ARE OF THE CONSIDERED OPINION THAT THE 15 ASSESSMENT ORDER SO FRAMED BY THE ASSESSING OFFICER IS NOT IN CONSONANC E WITH INSTRUCTION OF THE CBDT AND, THEREFORE DESERVES TO BE QUASHED. THE ORD ER OF THE LD. CIT(A) IS ACCORDINGLY SET ASIDE. THUS, IF THE A.O. HAS TAKEN UP THE ISSUE OF DETERMI NING FAIR MARKET VALUE OF THE PROPERTY IN QUESTION AS ON 01/4/1981 WITHOUT CONVERTING THE LIMITED SCRUTINY TO COMPREHENSIVE SCRUTINY BY TAKIN G THE PRIOR APPROVAL OF THE COMPETENT AUTHORITY THEN THE SAID ORDER PASSED BY THE A.O. WILL BE NULLITY AS BEYOND HIS JURISDICTION. THE AO NEITHER IN THE ASSESSMENT ORDER NOR IN THE ASSESSMENT PROCEEDINGS SHEET HAS MENTION ED ABOUT ANY PROPOSAL OF CONVERTING THE LIMITED SCRUTINY TO COMP REHENSIVE SCRUTINY AND CONSEQUENTIAL APPROVAL OF THE COMPETENT AUTHORITY B EING PRINCIPAL CIT/DIT. THE LD. COUNSEL FOR THE ASSESSEE HAS PRODU CED THE CERTIFIED COPY OF THE ASSESSMENT PROCEEDINGS SHEET WHICH DOES NOT CONTAIN ANY SUCH PROPOSAL OF THE AO FOR EXPANDING THE LIMITED S CRUTINY TO COMPLETE SCRUTINY. FURTHER, THE REVENUE HAS ALSO NOT PRODUCE D ANYTHING TO SHOW THAT THE AO HAS OBTAINED THE NECESSARY APPROVAL FRO M THE COMPETENT ITA 692/JP/2019_ LATE SMT. GURBACHAN KAUR VS DCIT 1 3 AUTHORITY FOR CONVERSION OF THE LIMITED SCRUTINY TO COMPREHENSIVE SCRUTINY. ACCORDINGLY, THE ISSUE WHICH IS TAKEN UP BY THE AO IN THE PROCEE DINGS UNDER SECTION 154 IS ILLEGAL AND VOID BEING BEYOND HIS JURISDICTI ON TO FRAME THE LIMITED ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 17 SCRUTINY ASSESSMENT. ACCORDINGLY, WE SET ASIDE AND QUASH THE ORDER PASSED BY THE AO UNDER SECTION 154 OF THE ACT. 14. IN LIGHT OF THE ABOVE DISCUSSIONS AND IN THE EN TIRETY OF FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE AND QUASH T HE ORDER PASSED BY THE AO U/S 143(3) OF THE ACT AND GROUND NO. 1 OF THE ASSES SEES APPEAL IS ALLOWED. 15. IN LIGHT OF ABOVE DISCUSSIONS, WHERE WE HAVE SET ASIDE AND QUASH THE ORDER PASSED BY THE AO, GROUND NO. 2 & 3 ON MERITS BECOMES ACADEMIC AND ARE NOT ADJUDICATED UPON, AND THUS DISMISSED AS INF RUCTIOUS. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27/02/2020. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27/02/2020 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI SITA RAM SWAMI, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD 4(5), JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 73/JP/2020} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 18 ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 19 ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 20 ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 21 ITA NO. 73/JP/2020 SHRI SITA RAM SWAMI, JAIPUR VS. THE ITO, WARD 4(5 ), JAIPUR 22