PROCEDURE AND CRITERIA FOR SELECTION OF
SCRUTINY CASES UNDER COMPULSORY MANUAL DURING THE FINANCIAL-YEAR 2013-2014-REGD
Instruction No: 10/2013
Dated: 5th August, 2013
In supersession of earlier instructions
on the above subject, the Board hereby lays down the following procedure and
criteria for manual selection of returns/cases for scrutiny during the
financial-year 2013-2017:
1. The targets for completion of scrutiny assessments and strategy of
framing quality assessments as contained in Central Action plan document for
Financial Year 2013-2014 has to be complied with. It is being reiterated that
all scrutiny assessments including the cases selected under manual criteria
will be completed through AST system software only.
2. 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 & 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
proviso(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.Yr. 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 (http://mha.nic.in/fcra.htm).
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.
3. In order to ensure the quality of assessment orders, CCsIT/DGsIT
would evolve suitable monitoring mechanism. They shall analyse at least 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 from quality
assessments as reported.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
