Subodh Adhikary vs. ITO Ward 51(1), Kolkata

Parties Involved

Facts Summary

The case pertains to the appeal filed by Subodh Adhikary against the order dated 05.10.2021 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The assessee filed a condonation petition due to a delay of 848 days in filing the appeal, which was attributed to the serious illness and subsequent death of the tax practitioner handling the case. The appeal was admitted after considering the genuine reasons provided. The main contention of the assessee was that the Assessing Officer (AO) exceeded his jurisdiction by making additions and calling for explanations on issues that were not part of the limited scrutiny, which was initially confined to the examination of cash deposits. The AO issued notices and called for information on other issues even before converting the limited scrutiny to complete scrutiny, which was in violation of CBDT Instruction No. 5/2016.…

Legal Issues

• 1. Whether the AO had the jurisdiction to make additions and call for explanations on issues beyond the scope of limited scrutiny.
• 2. Whether the addition of Rs. 28,00,000/- as unexplained cash credit under section 68 of the Act was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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