Central Board of Direct Tax ( CBDT ) has issued instruction for compulsory manual selection of scrutiny cases during the financial year 2015-16 . One of the surprising omission is blanket power to the CCIT /DGIT for selection of any case for scrutiny. So , during this year , only cases which falls within the criteria laid down by the instruction 08/2015 dated 31st August 2015 can be selected for the scrutiny. Neither A.O , nor commissioner or CCIT has got power to select any case for scrutiny beyond the CBDT instruction. Remember, if any case is selected for scrutiny in contravention of the said instruction, TRIBUNAL & Courts have held such selection bad in law. Here are major points for you to understand and see if your case will be one which will be selected for scrutiny:
Scrutiny Selection Criteria
- Cases involving addition in an earlier assessment year in excess of Rs. 10 lakhs on a substantial and recurring question of law or fact which is either confirmed in appeal or is pending before an appellate authority.
- Cases involving addition in an earlier assessment year on the issue of transfer pridng in excess of Rs. 10 crore or more on a substantial and recurring question of law or fact which is either confirmed in appeal or is pending before an appellate authority.
- All assessments pertaining to Survey under section 133A of the Income-tax Act, 1961 (‘Act’) excluding those cases where books of accounts, documents etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment However, where assessee retracts the disclosure made during the Survey, such cases will not be covered by this exclusion.
- Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A & 153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.
- Returns filed in response to notice under section 148 of the Act.
- Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found to be claiming tax-exemption under section 11 of the However, where such orders of the CIT/DIT have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.
- Cases where the approval already granted u/s 10(23C)/35(1)(ii)/35(1)(iii)/10(46) of the Act has been withdrawn by the Competent Authority, yet the assessee has been found claiming tax-exemption/benefit under the aforesaid provisions.
- Cases in respect of which specific and verifiable information pointing out tax-evasion is given by Government Departments/Authorities. The Assessinq Officer shall record reasons and take prior approval from jurisdictional Pro CCIT/CCIT/P DGIT/DGIT concerned before selecting such a case for scrutiny.
Apart form these cases , there will be selection of cases of scrutiny through CASS (Computer Aided Scrutiny Selection )[gview file=”http://taxworry.com/wp-content/uploads/2015/09/scrutiny-criteria.pdf”]