Brothers & Sisters Enterprise Vs JCIT (ITAT Kolkata)
When the CIT is satisfied with the reasons given by the Assessing Officer, he in not once again give separate reasons or repeat the reasons recorded by the Assessing Officer and then give his approval for the same.
Scrutiny guidelines vide Board Instruction F.No. 225/127/2011/ITA-II, dt. 2-9-2011 authorize the Assessing Officer to select any return for scrutiny after recording the reasons and obtaining approval of the CCIT/CIT. The case under the category should be selected if, they are compelling the reasons and the case selected through CASS. These cases should be watched by CCIT / CIT in respect of the quality of assessment.
The guidelines issued by CBDT do not require recording of reasons by CCIT / CIT for giving approval. In any event, these are internal guidelines issued for effective functioning of the Department. The requirement of obtaining approval of CIT/CCIT, as required Instruction F.No. 225/127/2011/ITA-II, dt. 2-9-2011 could not be equated with the requirements specified under the statute in section 151(1). When the CIT was satisfied with the reasons given by the AO, he was not required once again to give separate reasons or repeat the reasons recorded by the AO and then give his approval for the same. Therefore, ground of the assessee was rejected and it was held that selection of assessee’s case for scrutiny was in accordance with law.
