Scrutiny Criteria

Instruction for ‘Limited Scrutiny’ under CASS are Retrospective

Income Tax - Most of the cases selected for Scrutiny are through Computer Aided Scrutiny Selection (CASS). Only a particular class of cases such as those involving Search, Survey and Reopening of Assessment etc. come under Compulsory Scrutiny. A small Number of cases are manually selected by the Assessing Officers where they consider the Income of a p...

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7 things to know about Income-tax ‘Scrutiny’

Income Tax - 1. What is Scrutiny? Once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return, the department can initiate scrutiny proceedings if it has reason to believe that income is escaping assessment, i.e. income is under stated of...

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Guidelines for Selection of Cases for Scrutiny for FY 2019-2020

Income Tax - CBDT has issued an Instruction by which it has laid down the procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2019-20....

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Section 143(3) of Income Tax Act – Scrutiny Assessment –FAQ’s

Income Tax - Dear Readers, now these days Income Tax Department is very active in tax collection matters to achieve their targeted collection. Income Tax law mainly permits self-Assessment by assesse, related to their Income Tax Liability, however, from huge database of assesses limited numbers of returns are selected for scrutiny assessment. Now, Inc...

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Scrutiny Selection On The Basis Of AIR (SFT) Information

Income Tax - In the era of fast changing technology and data analytics, Income Tax Department too empowered itself with one of the most enabling data-sets which allowed itself to peep itself into the assessee’s deeper secrets by laying down the responsibility on Financial Institution like Banks, Registering authority empowered to register vehicles u...

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Avoid lengthy questionnaires without due application of mind – CBDT to its Officers

Income Tax - Though less that 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers, have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnai...

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Income Tax Scrutiny Criteria for F.Y. 2011-12 / A.Y. 2012-13

Income Tax - 1. Where value of international transaction as defined u/s. 92B exceeds Rs.15 Crore. 2. Cases where there was addition of Rs.10 Lacs or more in earlier assessment year and question of law or fact is confirmed in appeal or pending before appellate authority. 3. Cases in which addition of Rs.10 Crore or more was made in earlier assessment y...

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

Income Tax - 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. List of cases selected during each month in accordance with selection criteria mentioned below shall be submitted by the Assessing office...

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Cash transaction reports on 2G spectrum allocation issue under scrutiny

Income Tax - Investigating agencies probing alleged financial irregularities in the 2G spectrum allocation have now ordered scrutiny of all cash transaction reports related to the funding of payments by telecom players, banks and individuals involved ...

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Income Tax department strategy to meet FY 2009-2010 Budget target

Income Tax - The regular assessment tax (RAT) is one of best tools available to the Department to collect taxes. The collection from RAT not only showcases the effort of the Department to collect taxes but can also have a great deterrent effect on the tax evaders. During 2009-10, the Department has collected around Rs 31,242 crone from RAT which is ar...

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RTI -Income-tax department return scrutiny guidelines should be public – HC

Joginder Pal Gulati Vs The Officer On Special Duty (ITA II) Cum CPIO and ANR (Delhi High Court) - In so far as the impugned order is concerned, there is nothing stated in the operative part which would seem to indicate that the CIC has come to the conclusion which it has, is based on the fact that, the economic interest of the country, will get effected. The CIC, in the operative part has merely...

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Assessee cannot be declared as an assessee in default U/s. 201 of IT Act, 1961 for non-deduction of TDS

Bovis Lend Lease (India) Pvt. Ltd. (ITAT Bangalore) - Here we summarised the ruling of the Bangalore Income Tax Appellate Tribunal (ITAT) [2009-TIOL-666-ITAT-BANG] in the case of Bovis Lend Lease (India) Pvt. Ltd. (Taxpayer) on the taxability of payments towards reimbursement of cost forservices provided by a group entity. The ITAT held that such payme...

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Time limit prescribed for issuance of notice under section 143(2)(i) or 143(2)(ii) of IT Act

Bholanath R. Shukla Vs ITO (ITAT Mumbai) - 8. We have considered he submissions made by both the sides, material on record and orders of the authorities below. We find that the question, before US, is whether limited scrutiny proceedings and regular scrutiny proceedings are independent of each other or not and, therefore, notice issued for l...

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In cases of a group, coordinated investigation is a relevant ground for transfer of its case under section 127 of IT Act

Sahara India Commercial Corpn. Ltd. Vs CIT (Calcutta High Court) - Section 127 does not spell out under what facts and circumstances a transfer of a case can be made. However, in a case of inter-city transfer statute requires compliance of two requirements –first, to vie the assessee a reasonable opportunity of hearing, wherever it is possible to do so and second...

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Applicability of section 292B of IT Act in case return contains any mistake, defect or omission

Nicholas Applegate South East Asia Fund Limited Vs Assistant Director of Income Tax (ITAT Mumbai) - Nicholas Applegate South East Asia Fund Limited Vs Assistant Director of Income Tax (ITAT Mumbai) - The question of application of section 292B cannot be prejudged by finding that return, notice, etc. is not as per the requirement of the statute and is/are invalid; the finding that the return or not...

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Guidelines for scrutiny of invalid returns selected through CASS

F. No. 225/333/2019/ITA-11 - (29/11/2019) - It has been brought to the notice of Board that notices under section 143(2) of the Income-tax Act, 1961 ('Act') were generated in respect of certain invalid returns of the assessees filed for the Assessment Year 2017-18 through CASS Cycle 2018. As the scrutiny of such returns will pose a challenge ...

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Manual Income Tax complete Scrutiny criteria for F.Y. 2019-20

F.No.225/169/2019/ITA-11 - (05/09/2019) - The parameters for manual selection of returns for Complete Scrutiny during financial year 2019- 20 are as under.- (i) Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact:- (a) exceeding Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengaluru, Chen...

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Complete time barring scrutiny assessments by 25.12.2018: CBDT

D.O. F.No. 225/410/2018/ITA.II - (29/11/2018) - Assessing Officers should be sensitized to that fact that they should stagger their E-assessment related workload so that all assessments get uploaded by 25th of December, 2018 and no ticket is raised after the said date....

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CBDT directives on scope of inquiry in cases selected for Limited Scrutiny

F. No. 225/402/2018/ITA.II - (28/11/2018) - i. The Assessing Officer shall duly record the reasons for expanding the scope of 'Limited Scrutiny' to the extent mentioned in para 2 and 3, above; ii. The same shall be placed before the Pr. CIT/CIT concerned and upon his approval, further issue can be considered during the assessment proceeding;...

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Assessment of Defective Income Tax Return Selected For Scrutiny Under CASS- Procedure

F.No. System/ITBA/CASSlDefective returns/17 -18/ - (12/12/2017) - During CASS Cycle 2016, some of the returns of income which earlier were treated as defective as per provision of section 139(9) of Income Tax Act, 1961 (‘Act’) either for the reason that the taxes as per the return were not paid or for any other reason specified therein were also selected for s...

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Recent Posts in "Scrutiny Criteria"

Instruction for ‘Limited Scrutiny’ under CASS are Retrospective

Most of the cases selected for Scrutiny are through Computer Aided Scrutiny Selection (CASS). Only a particular class of cases such as those involving Search, Survey and Reopening of Assessment etc. come under Compulsory Scrutiny. A small Number of cases are manually selected by the Assessing Officers where they consider the Income of a p...

Read More
Posted Under: Income Tax | ,

7 things to know about Income-tax ‘Scrutiny’

1. What is Scrutiny? Once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return, the department can initiate scrutiny proceedings if it has reason to believe that income is escaping assessment, i.e. income is under stated of...

Read More
Posted Under: Income Tax | ,

Guidelines for Selection of Cases for Scrutiny for FY 2019-2020

Circular No. MIRSD/DPS III//Cir-11/07-SEBI (06/08/2007)

CBDT has issued an Instruction by which it has laid down the procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2019-20....

Read More
Posted Under: Income Tax |

Section 143(3) of Income Tax Act – Scrutiny Assessment –FAQ’s

Dear Readers, now these days Income Tax Department is very active in tax collection matters to achieve their targeted collection. Income Tax law mainly permits self-Assessment by assesse, related to their Income Tax Liability, however, from huge database of assesses limited numbers of returns are selected for scrutiny assessment. Now, Inc...

Read More
Posted Under: Income Tax |

Guidelines for scrutiny of invalid returns selected through CASS

F. No. 225/333/2019/ITA-11 (29/11/2019)

It has been brought to the notice of Board that notices under section 143(2) of the Income-tax Act, 1961 ('Act') were generated in respect of certain invalid returns of the assessees filed for the Assessment Year 2017-18 through CASS Cycle 2018. As the scrutiny of such returns will pose a challenge for the AO and is bad in law, I am direc...

Read More

Manual Income Tax complete Scrutiny criteria for F.Y. 2019-20

F.No.225/169/2019/ITA-11 (05/09/2019)

The parameters for manual selection of returns for Complete Scrutiny during financial year 2019- 20 are as under.- (i) Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact:- (a) exceeding Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai a...

Read More

Scrutiny Selection On The Basis Of AIR (SFT) Information

In the era of fast changing technology and data analytics, Income Tax Department too empowered itself with one of the most enabling data-sets which allowed itself to peep itself into the assessee’s deeper secrets by laying down the responsibility on Financial Institution like Banks, Registering authority empowered to register vehicles u...

Read More
Posted Under: Income Tax |

Complete time barring scrutiny assessments by 25.12.2018: CBDT

D.O. F.No. 225/410/2018/ITA.II (29/11/2018)

Assessing Officers should be sensitized to that fact that they should stagger their E-assessment related workload so that all assessments get uploaded by 25th of December, 2018 and no ticket is raised after the said date....

Read More

CBDT directives on scope of inquiry in cases selected for Limited Scrutiny

F. No. 225/402/2018/ITA.II (28/11/2018)

i. The Assessing Officer shall duly record the reasons for expanding the scope of 'Limited Scrutiny' to the extent mentioned in para 2 and 3, above; ii. The same shall be placed before the Pr. CIT/CIT concerned and upon his approval, further issue can be considered during the assessment proceeding;...

Read More

Assessment of Defective Income Tax Return Selected For Scrutiny Under CASS- Procedure

F.No. System/ITBA/CASSlDefective returns/17 -18/ (12/12/2017)

During CASS Cycle 2016, some of the returns of income which earlier were treated as defective as per provision of section 139(9) of Income Tax Act, 1961 (‘Act’) either for the reason that the taxes as per the return were not paid or for any other reason specified therein were also selected for scrutiny....

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