Scrutiny on the basis of data in Annual Information Return (AIR)

CA. M. Lakshmanan

As per notification F.No. 225/26/2006-ITA.II (Pt.) dated 8th September 2010 scope of enquiry in the scrutiny cases selected on the basis of information collected from AIR returns would be limited to the aspects of information received through AIR.

However a case may be taken for wider scrutiny with approval of administrative commissioner if it is felt that the income escaped is more than Rs. 10 Lakhs. But in practice all such cases are dealt in as regular scrutiny.

Moreover once the PAN is available, before sending notice to the persons involved, the departmental officials can verify whether the return is filed for the particular assessment year, whether the transaction as found in AIR is disclosed there and if the same is in order they need not proceed further. This will save lot of man hours for the Income Tax Officials as well as for assessees in calling for the information which is already available with the department.

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Categories: Income Tax

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