Income Tax Scrutiny

Scrutiny of Taxpayer by Income Tax Department

Income Tax - Income-tax scrutiny refers to the summoning of taxpayers for making inquiries regarding the income tax returns filed during the year if the concerned tax officials have a reason to believe that the expenses and income declared in the returns are dishonest and fabricated. The scrutiny aims at providing an opportunity of being heard to the ...

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Cases of Compulsory Scrutiny of Income Tax!

Income Tax - CBDT has provided Guidelines for compulsory selection of returns for Complete Scrutiny for FY 2022-23 also procedure for compulsory selection has also been provided in guidelines provided by CBDT....

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Now Agriculture Income Under Strict Scrutiny

Income Tax - CAG (Comptroller and Auditor General of India) has prepared a report on Assessments Relating to Agriculture Income which was presented in the 49th report of the Public Accounts Committee which clearly stated that the rich farmers whose agriculture income exceeds Rs 10 lakh per year limit, will face stricter scrutiny of agricultural income...

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Check List for Scrutiny of Books for Tax Audit Purpose

Income Tax - Check List for Scrutiny of Books for Tax Audit Purpose For Assessment Year 2021-2022 Step 1: Check and Verify the opening Balances of each ledger as per previous year signed Balance-sheet a) Is there any difference in Opening Balance Yes/No b) If there is any difference, as stated in (a) above, kindly fill the details: […]...

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CBDT Issued Guidelines for Compulsory Selection of Returns for Complete Scrutiny for F.Y. 2021-22

Income Tax - On 10th June, 2021, CBDT issued Guidelines prescribing framework for Compulsory Selection of returns for Complete Scrutiny during the Financial Year 2021- 22 to all PCC/CC/Pr.DG/DG of Income Tax. Study of these guidelines may help taxpayer analyze, as to under which category it falls. Framework is categorized as under: 1. Cases  related ...

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High-pitched Scrutiny Assessment- Revised Instruction – Local Committees

Income Tax - Revised Instruction for constitution and functioning of Local Committees to deal with taxpayers’ grievances due to high-pitched Scrutiny Assessment In line with CBDT’s policy and commitment towards providing enhanced taxpayers’ services and reduce taxpayers’ grievances, CBDT has issued revised Instruction for constitution and func...

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Income Tax scrutiny reduced drastically over the years: MOF

Income Tax - Ministry of Finance  Income Tax Returns( ITR) scrutiny reduced to 0.25% in AY 2018-19 IT Dept is changing -from just enforcement to facilitating better taxpayer services. No. of cases selected for scrutiny reduced drastically over the years – 0.71% in AY 2015-16, 0.40% in AY 2016-17, 0.55% in AY 2017-18 & 0.25% in AY 2018-19. [...

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No scrutiny of Start-ups related to valuations of share premiums 

Income Tax - Start-ups and their investors filing requisite declarations not to be subjected to any scrutiny regarding valuations of share premiums  E-verification mechanism proposed for establishing identity of the investor and source of his funds TV programme proposed exclusively for Start-ups within the DD bouquet of channels Government to launch ...

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Only 0.35% returns picked up for scrutiny this year: CBDT chairman

Income Tax - Income Tax Department has accepted 99.65 per cent of tax returns as it is and has picked only 0.35 per cent cases for detailed scrutiny thereby showcasing full faith in the taxpayers, chairman of the Central Board of Direct Taxes (CBDT), Mr Sushil Chandra said at an ASSOCHAM event held in New Delhi today....

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Giving-up of Indian addresses may not result in escaping scrutiny

Income Tax - In respect of Income Tax department, the persons are liable for taxation on income/transaction originated/attributed to India irrespective of their addresses. Giving-up of Indian addresses may not result in escaping scrutiny by the Department. Specific cases of NRIs giving-up Indian addresses solely for this purpose have not been noticed....

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AO cannot scrutinize income tax return without issuing Section 143(2) Notice

Arun Kanhaiya Gupta Vs ITO (ITAT Mumbai) - AO get jurisdiction over return of income only upon service of section 143(2) notice, meaning thereby so AO cannot scrutinize return of income...

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In ‘Limited Scrutiny’ AO can only examine those issues for which case been selected

Kintukumar Ambalal Patel Vs DCIT (ITAT Ahmedabad) - Kintukumar Ambalal Patel Vs DCIT (ITAT Ahmedabad)  The issue raised by the assessee in additional ground is that the learned CIT-A erred in confirming the order of the AO by expanding the scope of limited scrutiny assessment to complete scrutiny without necessary approval. Ld. AR further claimed th...

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Disallowance cannot be made on issues which are not subject matter of limited scrutiny

Dharam Bhushan Jain Vs ACIT (ITAT Delhi) - A.O. has not made any addition/disallowance on those two counts for which the case was selected for limited scrutiny, but he has made certain additions on an issue which was not the subject matter of limited scrutiny and there is nothing on record to suggest that the A.O. has taken necessary approva...

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Expanding of Limited Scrutiny scope by Section 263 order is invalid

Rajani Venkata Naga Annavarapu Narayana Vs PCIT-20 (ITAT Delhi) - ITAT find that order u/s 263 passed by PCIT dwelled into the issue of re-computation of capital gains which is beyond the mandate of limited scrutiny issued by CBDT. Hence, directions of PCIT are beyond selection criteria of scope of scrutiny for instant year cannot be held to be legally valid....

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CIT(A) cannot make addition on issues not covered by limited scrutiny

Arjun Transport Company Private Limited Vs ITO (ITAT Mumbai) - Arjun Transport Company Private Limited Vs ITO (ITAT Mumbai)  In cases selected under ‘limited scrutiny’, the Assessing Officer cannot exceed the latitude of limited scrutiny unless the scope of scrutiny is expanded or the case is converted from ‘limited scrutiny’ to ‘complete scrutiny’...

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Amendment in Guidelines for Compulsory Scrutiny of Income Tax Returns during F.Y 2022-23

F.No.225/ 81/2022/ITA-II - (26/09/2022) - Amendment in Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2022-23 — procedure for compulsory selection in such cases...

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Revised Guidelines for compulsory Income Tax returns scrutiny

F.No.225/ 81/2022/ITA-II - (03/06/2022) - F.No.225/ 81/2022/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (ITA-II division) North Block, New Delhi, the 3rd June, 2022 To All Pr. Chief Commissioners of Income-tax/ Chief Commissioners of Income-tax All Pr. Director Generals of Income-tax/ D...

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Compulsory Income Tax Scrutiny criteria/Guideline for FY 2022-23

F.No.225/81/2022/ITA-II - (11/05/2022) - CBDT Issues Guidelines for compulsory selection of Income Tax returns for Complete Scrutiny during the Financial Year 2022-23 and procedure for compulsory selection in such cases vide Instruction No. F.No.225/ 81/2022/ITA-II Dated: 11th May, 2022. CBDT notifies Scrutiny criteria/Guideline for follow...

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New guidelines for panels looking into high-pitched scrutiny assessment grievances

F.No.225/10112021-ITA-ll - (23/04/2022) - Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment (‘Local Committees’) are required to be constituted in each Pr.CCIT region across the country including the Pr.CCIT (Exemption) and Pr.CCIT (International Taxation)....

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Release of Refund determined for cases selected for Income Tax Scrutiny

Instruction No. 14 - (16/02/2022) - Workflow in ITBA for Withholding of Refund under Sec. 241A of the I. T. Act' 1961 or Release of Refund determined while Processing of Returns of Income for the cases selected for Scrutiny — Regarding...

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Recent Posts in "Income Tax Scrutiny"

Amendment in Guidelines for Compulsory Scrutiny of Income Tax Returns during F.Y 2022-23

F.No.225/ 81/2022/ITA-II 26/09/2022

Amendment in Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2022-23 — procedure for compulsory selection in such cases...

Read More

Scrutiny of Taxpayer by Income Tax Department

Income-tax scrutiny refers to the summoning of taxpayers for making inquiries regarding the income tax returns filed during the year if the concerned tax officials have a reason to believe that the expenses and income declared in the returns are dishonest and fabricated. The scrutiny aims at providing an opportunity of being heard to the ...

Read More
Posted Under: Income Tax |

AO cannot scrutinize income tax return without issuing Section 143(2) Notice

Arun Kanhaiya Gupta Vs ITO (ITAT Mumbai)

AO get jurisdiction over return of income only upon service of section 143(2) notice, meaning thereby so AO cannot scrutinize return of income...

Read More

Cases of Compulsory Scrutiny of Income Tax!

CBDT has provided Guidelines for compulsory selection of returns for Complete Scrutiny for FY 2022-23 also procedure for compulsory selection has also been provided in guidelines provided by CBDT....

Read More
Posted Under: Income Tax |

In ‘Limited Scrutiny’ AO can only examine those issues for which case been selected

Kintukumar Ambalal Patel Vs DCIT (ITAT Ahmedabad)

Kintukumar Ambalal Patel Vs DCIT (ITAT Ahmedabad)  The issue raised by the assessee in additional ground is that the learned CIT-A erred in confirming the order of the AO by expanding the scope of limited scrutiny assessment to complete scrutiny without necessary approval. Ld. AR further claimed that the Assessing Officer has converted t...

Read More

High-pitched Scrutiny Assessment- Revised Instruction – Local Committees

Revised Instruction for constitution and functioning of Local Committees to deal with taxpayers’ grievances due to high-pitched Scrutiny Assessment In line with CBDT’s policy and commitment towards providing enhanced taxpayers’ services and reduce taxpayers’ grievances, CBDT has issued revised Instruction for constitution and func...

Read More
Posted Under: Income Tax |

Revised Guidelines for compulsory Income Tax returns scrutiny

F.No.225/ 81/2022/ITA-II 03/06/2022

F.No.225/ 81/2022/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (ITA-II division) North Block, New Delhi, the 3rd June, 2022 To All Pr. Chief Commissioners of Income-tax/ Chief Commissioners of Income-tax All Pr. Director Generals of Income-tax/ Director Generals of Income-tax. Madam/Si...

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Compulsory Income Tax Scrutiny criteria/Guideline for FY 2022-23

F.No.225/81/2022/ITA-II 11/05/2022

CBDT Issues Guidelines for compulsory selection of Income Tax returns for Complete Scrutiny during the Financial Year 2022-23 and procedure for compulsory selection in such cases vide Instruction No. F.No.225/ 81/2022/ITA-II Dated: 11th May, 2022. CBDT notifies Scrutiny criteria/Guideline for following parameters for compulsory selection ...

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New guidelines for panels looking into high-pitched scrutiny assessment grievances

F.No.225/10112021-ITA-ll 23/04/2022

Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment (‘Local Committees’) are required to be constituted in each Pr.CCIT region across the country including the Pr.CCIT (Exemption) and Pr.CCIT (International Taxation)....

Read More

Now Agriculture Income Under Strict Scrutiny

CAG (Comptroller and Auditor General of India) has prepared a report on Assessments Relating to Agriculture Income which was presented in the 49th report of the Public Accounts Committee which clearly stated that the rich farmers whose agriculture income exceeds Rs 10 lakh per year limit, will face stricter scrutiny of agricultural income...

Read More
Posted Under: Income Tax | ,

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