The assessee has raised additional grounds before the Tribunal urging that  that the Assessing Officer had erred in issuing notice under section 143(2) without complying with the Central Board of Direct Taxes Instruction F. No. 225/157/2017/ITA-II, dated June 23, 2017 (2016) 385 ITR 56 (St) and that the assessment order under section 143(3) provided that the return was selected for limited scrutiny on the issue of “cash deposit during demonetisation” and that the additions made in the assessment order was without jurisdiction. The Department contended that no expression exhibiting the aspect of limited scrutiny was used by the Assessing Officer and that the notice would indicate that the case was selected for scrutiny assessment. Tribunal admitted the additional ground. 

The Tribunal held that the Assessing Officer had not made any addition on account of cash deposits made during the demonetisation period. The assessee has deposited small amounts, which had been accepted by the Assessing Officer. Therefore, the assessment order itself was not sustainable because it had been passed by the Assessing Officer in excess of his limited powers. The Assessing Officer ought to have followed the procedure contemplated in the Central Board of Direct Taxes Instruction No. 5 of 2016 for converting a limited scrutiny assessment into a full scrutiny. Assessment order is quashed. Addition is  deleted.  (AY.2017-18)