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New procedure and criteria for selection of Scrutiny Cases

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Subject: Procedure and criteria for selection of scrutiny cases under compulsory manual during the financial-year 2013-2014 -regd:


The following categories of cases /returns shall be compulsorily scrutinized:

a) Cases where value of international transaction as defined u/s 92B of IT Act exceeds Rs.15 crores.

b)Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs.10 Crores or more which is confirmed in appeal or is pending before an appellate authority.

c) Cases involving addition in an earlier assessment year in excess of Rs.10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

d) All assessments pertaining to Survey under section 133A of the IT Act excluding the cases where there are no impounded books of accounts/documents and returned income excluding any disclosure made during the Survey is not less than returned income of preceding assessment year. However, where assessee retracts the disclosure made during the Survey will not be covered by this exclusion.

e) Assessment in Search and seizure cases to be made under sections 158B, 158BC, 158BD 153A  and 153C read with 143(3) of the IT Act.

f) All returns filed in response to notice u/s 147/148 of the IT Act.

g) Cases claiming exemption of income u/s  11 or u/s 10(23C) which are hit by provisio(s) to Section 2(15) of IT Act.

h) Entities which received donations from countries abroad in excess of Rs. One Crore during the Financial Year 2011-2012 (relevant for the A.Y 2012-2013) under the provisions of Foreign Contribution Regulation Act (FCRA). Such information is maintained by Ministry of Home Affairs and is available on its website (www. Mha.nic.in). Respective cadre controlling Chief-Commissioners /Directors-General of Income Tax may identify the cases pertaining to their respective jurisdiction after downloading from the website and disseminate the information to various field offices.

i) Cases in respect of which information is received from other Government Department(s) or other authorities pointing out tax-evasion. The Assessing Officer shall record reasons in such cases and take approval from jurisdictional CCIT/DGIT before selecting such case for scrutiny.

In order to ensure quality of assessment orders, CCsIT/DGsIT would evolve suitable monitoring mechanism. They shall analyse atleast 50 quality assessments of their respective charges and send the report to respective Zonal Member with copy to Member (IT) with suggestions for improvement by 30th April, 2014. CCsIT/DGsIT would further ensure that cases selected for publication in ‘let us share’ are picked up quality assessments as reported.

1 comment:

  1. AOs need to strictly follow being a public servant should by his legal duty as explained in Art 51A (i-j) need to be strictly followed by one and all that way Natural justice will be preserved; as it is settled position under Art 265 ..No tax shall be levied or collected without authority of law (means all valid laws need to be honored including limitation applicable under their own rules and laws properly read together ) so that no assessed is put to unnecessary litigation is my view;

    Tax laws are to abide by Art 265 of the constitution of india; wherever any breach by any statute or executive instruction or Notices by Revenue all actions should be declared void ab initio, that will also need necessarily visit on the officers or authorities concerned who committed breach need to be forced to pay exemplary compensation to the Assesses concerned illegally harassed, that way it will impress on them the necessary of discipline is imposed; besides such careless officers' (public servants) increments say for two years are curtailed . these actions will build up discipline properly on officer to buil up his or her needed officer-like qualities in the Revenue officers.

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