Income Tax Scrutiny Guidelines Don’t Exclude Random Selection by AOs: Patna HC

Patna Smart City Limited Vs Assessment Unit (Patna High Court) In the case of Patna Smart City Limited Vs Assessment Unit (Patna High Court), the petitioner, a government company funded by the government, challenged certain assessment orders issued under the Income Tax Act, 1961. The petitioner argued that the scrutiny was conducted contrary to the guidelines issued by the Central Board of Direct Taxes (CBDT) for the financial year 2021-22. The court, however, ruled that the CBDT guidelines for compulsory scrutiny did not prevent the random selection of cases by the Assessing Officers (AOs). T...