PCIT v. Sukhdham Infrastructures LLP (2023) 335 CTR 476(Cal) ( HC)

S. 143(3): Assessment-limited scrutiny-Conversion into complete scrutiny-Derogation to Instruction No. 5 of 2016, dt. 14th July, 2016-Order of Tribunal quashing the addition is affirmed-No substantial question of law.[S. 119, 142(1), 143(2), 260A]

AO had issued notice under s. 143(2), for a limited scrutiny covering four issues-Subsequently, by notice dt. 20th Feb.. 2017, issued under s. 142(1), the AO called for information on secured and unsecured loan deposits which was not covered by limited scrutiny. Order granting approval for complete scrutiny was passed only on 14th Dec., 2017, Le., much after the enquiry was commenced by the AO. Tribunal held  that the procedure adopted by the AO was in complete derogation to Instruction No. 5 of 2016, dt. 14th July, 2016 and held that the assessment order passed by the AO is not sustainable. High court affirmed the order of the Tribunal. No case is made out for interference with the order passed by the Tribunal. Sukhdham Infrastructures LLP v. ITO (2023) 226 TTJ (Kol) 497 affirmed; Venkataswamappa v Special Duty Commr (Revenue) (1997) 9 SCC 128 and CWT v Sharvan Kumar Swarup & Sons (1994) 122 CTR (SC) 380 (1994) 6.SCC 623 distinguished.  (AY.  2015-16)