Case Number: ITA 472/DEL/2021
Appellant: Rukmani Devi, Muzaffarnagar
Respondent: Pr. CIT, Dehradun
Assessment Year: 2015-16
Case Filed On: 2021-04-27
Order Type: Final Tribunal Order
Date of Order: 2022-03-03
Pronounced On: 2022-03-03
This case involves Smt. Rukmani Devi who filed an appeal against the order of the Principal Commissioner of Income Tax (Pr. CIT), Dehradun, under Section 263 of the Income Tax Act, 1961. The case revolves around the issue of the limited scrutiny and the scope of the Assessing Officer’s (AO) examination during the assessment year 2015-16.
The appellant argued that the notice and order under Section 263 were illegal and beyond the jurisdiction of the Pr. CIT. The main points raised were:
The respondent (Pr. CIT) argued that the AO failed to convert the limited scrutiny to complete scrutiny despite finding potential escapement of income. The Pr. CIT believed that the AO should have sought approval for a complete scrutiny to verify the applicability of Section 50C related to capital gains.
The Tribunal analyzed the arguments and found that:
The Tribunal concluded that the Pr. CIT’s order to set aside the assessment was unsustainable in law. The assessment order passed by the AO was quashed, and the appeals filed by Smt. Rukmani Devi and Smt. Prabha Rani were allowed.
Final Judgment: The Tribunal quashed the order of the Pr. CIT and allowed the appeals filed by the assessees. The decision was pronounced in the open court on 03/03/2022.
This case highlights the procedural aspects of limited scrutiny and the jurisdictional limits of the Pr. CIT under Section 263 of the Income Tax Act, 1961.
Rukmani Devi vs. Pr. CIT, Dehradun – ITA 472/DEL/2021: Filed Due to Scrutiny Scope Dispute
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