Got Scrutiny Notice u/s 143(2) During FY 2015-16 ? CBDT Issues Instruction to Help You !

Have you given attention to the scrutiny notice served during FY 2015-16 ? You may find the word “Limited Scrutiny “? What does that mean ? CBDT now has issued instruction no 20/2015 dt 29/12/2015 to explain the difference and that really matters for you because it will enlighten you .This year end CBDT instruction is  quite benevolent to the hapless tax payers who are often agonized by the voluminous and even unrelated questions sent u/s 142(1) of the Income Tax . So here is major points of the instructions which is going to help you 

  1. If you received notice for scrutiny, please see the notice closely . If it shows words “Limited Scrutiny”, the A.O has following duties as per the instruction
    1. The reasons for selection of case has to be intimated by the A.O on his own.
    2. The A.O can not ask any questions shall be  confined  only to the specific reasons/issues  for which case has been picked up for scrutiny.
    3. The scope of enquiry shall be restricted to the ‘Limited Scrutiny’ issues.
  2. If A.O finds any other issues which shows escapement of income of Rs 5 Lakhs or more in non-metro cities and RS 10 Lakhs , in metro cities , he will have to seek the approval from Principal CIT or CIT in writing. Only then, he can scrutinize the case as Complete Scrutiny and not the limited scrutiny.

What if despite the Instruction, A.O keeps you asking various questions

In that case , he is inviting illegality in his action. Best course of action is to be silent and note down all his illegality as you will get the opportunity to raise the issue of non compliance with CBDT instruction at appropriate authority. Please also read What A.O Can’t Do in a Scrutiny case ?

CBDT Instruction No 20/2015

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