| COURT: | ITAT Delhi |
| CORAM: | Prashant Maharishi (AM), Sudhanshu Srivastava (JM) |
| SECTION(S): | 143(3), 292BB |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Assessment, complete scrutiny, limited scrutiny, Scope of scrutiny |
| COUNSEL: | Kapil Goel |
| DATE: | June 12, 2020 (Date of pronouncement) |
| DATE: | June 16, 2020 (Date of publication) |
| AY: | 2015-16 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 143(3)/ 292BB: Under CBDT Instruction No.5/2016, a case earmarked for 'Limited Scrutiny' cannot be taken for 'Complete Scrutiny' unless the AO forms a "reasonable view" that there is a possibility of under assessment of income. The objective of the instruction is to (i) prevent fishing and roving enquiries; (ii) ensure maximum objectivity; and (iii) enforce checks and balances upon the powers of the AO. On facts, there is not an iota of cogent material shown by the AO for the conversion from limited scrutiny to complete scrutiny. The PCIT has also accorded approval in a mechanical manner. S. 292BB does not save the infirmity. The assessment order has to be quashed as a nullity | |
The department, which is State, can be permitted to selectively apply the standards set by themselves for their own conduct. If this type of deviation is permitted, the consequences will be that floodgate of corruption will be opened which it is not desirable to encourage. When the department has set down a standard for itself, the department is bound by that standard and cannot act with discrimination
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