prpri Criteria / Guidelines for Income tax Scrutiny for A.Y. 2010-11 / F.Y. 2009-2010 Criteria / Guidelines for Income tax Scrutiny for A.Y. 2010-11 / F.Y. 2009-2010

Republished on 10th September 2011,  Earlier Published on 14th August 2010

Guidelines for selection of cases for Scrutiny During 2010-11

1.       Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few cases listed below.

2.       List of cases selected during each month in accordance with selection criteria mentioned below shall be submitted by the Assessing officers to their respective Range heads by the 15th of the following month and also displayed on the notice Board of their offices .

3.       These guidelines are meant only for the use of officers of the Income Tax Department .These are not to be disclosed even if a request is made under Right to Information Act, In view of the decision of the Central Information Commission in the case of Shri Kamal Vs Director (ITA-II), CBDT (order no CIC/AT/2007/00617 dated 21.02.2008)

Selection criteria Applicable to all return at all stations

a)      Value of International transaction as defined in 92B exceeds 15 Crore.

b)      Cases involving addition in an earlier assessment year in excess of Rs 10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before on appellate authority.

c)       Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs 10 Lakh or more.

d)      Assessment in survey cases for the financial year in which survey was carried out. This criteria will not apply if all of the following conditions are fulfilled:

i.            There are no impounded books or documents.

ii.            There is no retraction of disclosure, if any, made during the survey.

iii.            Declared income, excluding any disclosure made during the survey, is not less than the declared income of the preceding year.

e)      Assessment in search & Seizure cases to be made under section 158B, 158BC, 158BD, 153A,  153C & 143(3) of the IT Act.

f)       Assessment Initiated under section 147/148 of the IT Act.

g)      Assessing officer may select any return for scrutiny after recording he reason and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if, there are compelling reasons and the case is not selected through CASS. These cases should be watched by CCIT/CIT in respect of the quality of assessment.


Must Read-

1. Income Tax department strategy to meet the Financial Year 2009-2010 Budget target

2. Guidelines / Criteria For Income tax Scrutiny for Financial Year 2010-11 / Assessment Year 2011-12

More Under Income Tax


  1. Gautam Jain says:

    We are small scale Industry & our Industry got Netional award 2008 by Prime minister Dr. Manmohan Sing .
    Our turn over for last 7 years are as below.
    Year Turnover Gp NP tax imposed

    on scrutany
    2005-06 1.31 Cr 28.52 L 3.05 L 57600 refund
    2006-07 1.60 Cr 29.59 4.87 L
    2007-08 2.21 Cr 32.34 4.02 L
    2008-09 2.69 33.43 5.69 L
    2009-10 1.83 29.40 7.31 L

    From last 2004-05 , 05-06 , 2007-08 & 2009-10 we are regular getting scrutany case & for last 3 years we impose tax of 60000 to 80000

    We are un neccesarry harrased & you know other things.

    Please suggest what we do so that regular scritany not come.

    Gautam Jian


    Thanking you for informing the details of Scrutiny. Please let me know how the selection made under CASS ? What is meaning that CPC unable to process the Return and transferred to Jurisdiction Income Officer ?
    Awaiting you reply

  3. Vineet Agrawal says:

    These are guidelines for selection during FY 2010-11. What about current year. Are they following the same guidelines because notices for AY 2010-11 have commenced.

  4. CA Sarveshwar Mundra says:

    Case of an assessee (society) selected in CASS since last 5 years claiming deduction under section 80P including AY 2010-11. Scrutiny assessment for AY 2009-10 is pending and all earlier years’ scrutiny assessment resulting nil demand.

    I don’t understand why this case selected for the 5th year in row under CASS. This is something wastage of manpower of Income-tax Department. Is there something wrong in CASS system ?

  5. Pawan Kumar Sharma says:

    Well, I believe that this is not the complete inoformation , coz., we do not see any other specific criteria. The reasons cited above are those which a man with some common sense can infer himself. I mean where is the mention that if the Co. has taken so much of loan or subscription from single person, etc. then scrutinize that case. Such criteria exists for earlier years , then why not for this year

  6. cachn says:

    Does any one knows what were the crietaria for CASS assement this year , i.e weather it is increase in income or mutual funds above 2 lacs??


    The cass have selected the cases of income-tax returns filed either through e-filing or manual and a list of the same has already been forwarded to the concerned income-tax offices.

  8. Subhash says:

    What is meant by addition of rs10lacs in earlier years on substantial question of law.whether every addition of rs10 lacs comes under this guidelines

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