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
2014-2015:-
a)
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 confirmed in appeal or is pending before an appellate authority.
b)
Cases involving addition in an earlier assessment year on the issue of
transfer pricing in excess of Rs. 10 crore or more on a substantial and
recurring question of law or fact which is confirmed in appeal or is
pending before an appellate authority.
c)
All assessments pertaining to Survey under section 133A of the 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.
d)
Assessments in search and seizure cases to be made under section 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 arid seizure was
executed u/s 132 or 132A of the Act.
e) Returns filed in response to notice under section 148 of the Act.
f)
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 Act. However,
where such order’s of the CIT/DIT have been reversed/set-aside in
appellate proceedings, those cases will not be selected under this
clause.
g)
Cases where order denying the approval u/s 10(23C) of the Act or
withdrawing the approval already granted has been passed by the
Competent Authority, yet the assessee has been found claiming
tax-exemption under the aforesaid provision of the Act.
h)
Cases in respect of which specific and verifiable information pointing
out tax evasion is given by Government Departments/Authorities. The
Assessing Officer shall record reasons and take prior approval’ from
jurisdictional Pr. CCIT/CCIT /Pr. DGIT/DGIT concerned before selecting
such a case for scrutiny.
2.
Computer Aided Scrutiny Selection (CASS): Cases are also being selected
under CASS on the basis of broad based selection filters. List of such
cases shall be separately intimated in due course by the DGIT(Systerns)
to the jurisdictional authorities concerned.
3.
It is reiterated that the targets for completion of scrutiny
assessments and strategy of framing quality assessments as contained in
Central Action Plan document for Financial-Year 2014-2015 has to be
complied with and it must be ensured that all scrutiny assessment orders
including the cases selected under the manual criterion are completed
through the AST system software only. Further, in order to ensure the
quality of assessments being framed, Pr. CCsIT/CCsIT/Pr. DsGIT/DsGIT
should evolve a suitable monitoring mechanism and by 30th April, 2015,
such authorities shall send a report to the respective Zonal Member with
a copy to Member (IT) containing details of at least 50 quality
assessment orders from their respective charges. In this regard, IT
Authorities concerned must ensure that cases selected for publication in
‘Let us Share’ are picked up only from the quality assessments as
reported.
