The Deputy Commissioner (DCIT) had issued a notice under section 143(2) clearly stating that the assessee’s tax return had been selected for scrutiny on the basis of paragraph 1(iii) of the Manual Compulsory Scrutiny Guidelines issued by the CBDT vide Instruction No. 5/2017 dt 7—7 2017.

The Tribunal set aside the assessment proceedings pursuant to the assessment order passed by the Assessing Officer under section 143(3) on the ground that the assessee’s return was selected for scrutiny without the necessary approval of the jurisdictional Principal Commissioner (Pr.CIT)/Principal Director (Pr.DIT).On appeal High Court affirmed the ordrr of the Tribunal. (AY. 2016-17)