F.No.225/26/2006-ITA.II (Pt.)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, dated the 8th September, 2010

To

All Chief Commissioners of Income Tax

All Directors General of Income Tax

Sir/Madam,

Subject: Selection of cases for scrutiny on the basis of data in AIR returns and subsequent assessment proceedings-regarding.

Reference is invited to Board’s letter of even number dated 23rd May, 2007 regarding scope of enquiry in the scrutiny cases selected only on the basis of information received through the AIR returns.

2. The above mentioned guidelines have been reconsidered by the Board and it has been decided that the scrutiny of such cases would be limited only to the aspects of information received through AIR. However, a case may be taken up for wider scrutiny with the approval of the administrative Commissioner, where it is felt that apart from the AIR information there is a potential escapement of income more than Rs. 10 Lacs.

3. It has also been decided that in all the cases which are picked for scrutiny only on the basis of AIR information, the notice u/s 143(2) of Income Tax Act 1961 should clearly be stamped with “AIR Case”.

This should be immediately brought to the notice of all the officers working in your region.

Yours faithfully,

(Ajay Goyal)

Director (ITA.II)

Download copy of official press release duly stamped and signed

F.No.225262006-ITA.II (Pt.)

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0 responses to “AIR Related scrutiny assessments should be limited to info in AIR”

  1. Varun says:

    Nice one for assessee’s

  2. anup kumar jain says:

    While issuing notices u/s 142(1)/143(2), AO’s are not marking them with AIR. It is mandatory and necessary directions have already been issued by the Board. Local Bars and higher authorities should ensure it other wise how assessee’s will come to know that their cases were selected for scrutiny on the basis of AIR.

  3. surendra says:

    Well done. Clarification was long overdue still AO,s will find the way out.

  4. raj says:

    VERY GOOD CLARIFICATION.WILL SAVE ASSESSEES FROM UNNECESSARY HARASSMENT AND SAVE LOT OF TIME AND CHANCES OF CORRUPTION WOULD SUBSIDE.

  5. PRAMOD MITTAL TAX ADVISOR 9460166775 says:

    GOOD IDEA HAI

  6. M. Lakshmanan says:

    Invariably the scrutiny extends beyond the scope mentioned in the circular and the assessees are put to lot of trouble in furnishing details for three to four years.

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