Tribunal held that the Assessing Officer is duty bound to follow the instructions in case limited scrutiny assessment proceeding are proposed to be converted into complete scrutiny and without following procedure and necessary approval of the competent authority, enquiry into an issue which was outside the limited scrutiny would be beyond the jurisdiction of the Assessing Officer. The Assessing Officer is also required to intimate the assessee regarding conversion of limited scrutiny to complete scrutiny in such cases. Therefore, in the absence of communication in writing to the Assessing Officer about the approval, the assumption of jurisdiction by the Assessing Officer was invalid. Consequently, the addition made by the Assessing Officer denying the deduction under section 54B was not sustainable.( AY.2014-15)
Manju Kaushik (Smt.) v. Dy. CIT (2020)78 ITR 564/192 DTR 227 /206 TTJ 435 ( Jaipur) (Trib)
S.143(3):Assessment — Conversion of limited scrutiny into complete scrutiny — Assessing Officer is bound to follow the instructions -Prior approval from competent authority mandatory —In the absence of communication in writing to Assessing Officer about approval, assumption of jurisdiction by Assessing Officer invalid .[ S.54B ]