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The CBDT has issued Instruction No. 10 of 2013 dated 05.08.2013 announcing the procedure and criteria for selection of scrutiny cases under the compulsory manual for FY 2013-14. The guidelines appear to have been issued pursuant to the direction of the Delhi High Court in Joginder Pal Gulati vs. OSD – CPIO

INSTRUCTION NO 10/2013, Dated: August 5, 2013

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

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 2013-2014:

2. 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.

3. 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.

4. 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.

5. These Instructions may be brought to the notice of all concerned.

F.No.225/107/2013/ITA.II

(Rohit Garg)
Deputy secretary to Government of India

7 Responses to “CBDT Criteria For Selection Of Scrutiny Cases In FY 2013-14”

  1. Sanjeev Bindal Says:

    Quite thoughtfully drafted

  2. Useful Miscellania » CBDT Modifies Norms For Compulsary Scrutiny Of Cases In FY 2013-14» Useful Miscellania Says:

    […] the norms for compulsory manual selection of cases for scrutiny in FY 2013-14 as specified in Instruction No. 10 of 2013 dated 05.08.2013. The scrutiny norms have been made public pursuant to the directions of the Delhi High Court in […]

  3. Balakrishnan Gurumurti Says:

    seems somewhat sensible yet there needs a lot o improvements needed in notiication

  4. RATAN DEB Says:

    Very much helpful.

  5. dr.g.balakrishnan phd., LL.M Says:

    FIND AOs fail to follow sec 143(2)(ii) guidelines which is detrimental to scrutiny assessments, as courts or tribunals just invalidate the AO notices issued under scrutiny per force need to follow strictly CBDT Circular valid… it is better AOs or ITOs do not send invalid notices and harass genuine assesses by some assumptions/rumors etc as per Hindustan lever matter before Bombay High Court earlier decided;

    No blind Notices without following norms laid down in sec 143(2)(ii);

    if AOs blidly do rhey will be held personally liable under Torts for liquidated damages for agony cased to assesses over years, Revenue would not accept liquidated damages under error of department but liability would revolve on individual officer concerned that they need to know i believe, as there will no be any vicarious liability please!

  6. dr ravi f salmani Says:

    IT survey has been done for me in july 2014 ,will i be put for scrutiny?

  7. dr,g.balakrishna Says:

    Normally every circular can have prospective effect only. so in ravi f salmani’s case is of july so the circular may not apply

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