AO's Action Beyond Scope of Limited Scrutiny Invalid: ITAT Quashes Addition

The Raipur Bench of the ITAT quashed an addition of ₹12.34 lakh made under Section 68 by the AO, who investigated a loan from the assessee's wife during a limited scrutiny case meant only for verifying cash deposits. The Tribunal held that the AO exceeded jurisdiction without approval from competent authority, violating procedural mandates. It cited Supreme Court guidance and Article 265 of the Constitution to assert that assessments beyond authorised scope are void. The order of CIT(A) was also set aside.