Whether the Assessing Officer can enquire into those issues which were beyond the scope of limited scrutiny?
In limited scrutiny, the scope of assessment is confined strictly to the specific issues flagged for examination. The AO cannot venture into new areas or issues outside the original scope unless the case is converted into a complete scrutiny after following the prescribed procedure in accordance with CBDT’s instructions.
In the following judicial pronouncements, it was affirmed that the AO had exceeded his jurisdiction by enquiring into issues beyond the scope of limited scrutiny, and accordingly, the assessment order was either quashed as a nullity and held to be bad in law or the appeal was partly allowed:
The reliance was placed on the following cases:
➤ Weilburger Coatings (India) Pvt. Ltd. v. DCIT (ITA No. 753/Kol/2019), upheld by the Hon’ble Calcutta High Court in PCIT vs. Weilburger Coatings (India) Pvt. Ltd. [(2024) 463 ITR 89 / 155 taxman.com 580]
➤ Vudatha Vani Rao v. ITO (ITA No. 254/Viz/2023)
➤ Srimanta Kumar Shit v. ACIT (ITA No. 1911/Kol/2024)
➤ Narendra Kumar Singh v. ITO (ITA No. 468/PAT/2024)
The copy of the order is as under:
