The Delhi bench of ITAT has quashed the assessment order passed u/s 143(3)

The Delhi bench of ITAT has quashed the assessment order passed u/s 143(3)

The Delhi bench of ITAT has quashed the assessment order passed u/s 143(3) where the Assessing Officer travelled beyond his jurisdiction and made disallowances u/s 37(1)/40A(3) of the Act which were not the items for consideration in the limited scrutiny. In this case, the case was selected for limited scrutiny involving the issues of substantial increase in capital and higher interest expenditure against new capital added in work-in-progress or addition made to fixed assets. However, the Assessing Officer made disallowance u/s 37(1) of the Act in respect of business expenditure and u/s 40A(3) in respect of cash paid for purchase.



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