Assessee-company filed its return of income, which was selected for limited scrutiny under CASS to examine the issue of a large increase in share capital during the year, and accordingly, a notice under section 143(2) was issued to the assessee. In response, assessee stated that it had taken over a proprietorship concern and had recorded all assets and liabilities, including intangible assets like goodwill, etc., at acquisition cost on the basis of a valuation report by a CA firm that was an expert in business valuation and had issued shares against assets and liabilities taken over as per said valuation report. Assessing Officer did not make any addition in respect of the issue of increase in share capital; however, he proceeded to examine the issue of claim of depreciation and made an addition by disallowing depreciation on goodwill. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that merely because issue of claim of depreciation was germane to issue of purchase of assets/goodwill, that itself, would not confer jurisdiction upon Assessing Officer to suo motu enlarge his jurisdiction from limited scrutiny to full scrutiny and entitle him to make additions by disallowing depreciation on goodwill, which issue was neither subject nor within scope of limited scrutiny issue of increase in share capital. The  Assessing Officer, without seeking any permission from the competent authority, exceeded jurisdiction by enlarging the scope of limited scrutiny and made an addition by disallowing depreciation on goodwill; the assessment order was quashed. (AY. 2017-18)