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“scrutiny assessment”

Assessment ProceduresSection 143(3)Section 143(3)7,671 judgments

The decision most relied on for scrutiny assessment is CIT v. Sunbeam Auto Ltd. (332 ITR 167), cited in 897 judgments on BharatTax.

Leading authorities on scrutiny assessment

CIT v. Sunbeam Auto Ltd.
332 ITR 167 · 2011 · High Court
897
citing judgments

The Commissioner cannot revise an assessment under Section 263 merely because the assessment order does not explicitly reflect an inquiry, or because the Commissioner holds a different opinion. An inquiry, even if considered inadequate, or an assessment based on a plausible view by the Assessing Officer after due examination, does not automatically make the order erroneous or prejudicial to the interests of the revenue.

Phool Chand Bajrang Lal v. ITO
203 ITR 456 · 1993 · Supreme Court
396
citing judgments

Reassessment proceedings under Section 147 are valid even after a scrutiny assessment under Section 143(3), provided the Assessing Officer forms a reason to believe, based on definite, specific, and reliable information, that income escaped assessment due to the assessee's failure to fully and truly disclose material facts.

Sanjay Bimalchand Jain v. PCIT-1, Nagpur
89 Taxmann.com 196 · 2018 · High Court
251
citing judgments

The exemption for long-term capital gains on share transactions is unavailable if the assessee fails to discharge the onus of proving the genuineness of gains arising from dubious share transactions designed to convert unaccounted income into tax-exempt capital gains. Courts will uphold an assessment based on the Revenue's evidence of price rigging or penny stock manipulation if the assessee cannot provide cogent evidence for the abnormal rise in share value.

CIT v. British Paints India Ltd.
188 ITR 44 · 1991 · Supreme Court
204
citing judgments

The Assessing Officer has a duty to examine whether an assessee's books of account truly disclose the correct income and is not bound to accept the accounting system regularly employed by the assessee or methods followed in earlier years. Each assessment year is a distinct and self-contained unit for tax purposes.

Principal Commissioner of Income-tax v. Subodh Agarwal
149 Taxmann.com 373 · 2023 · High Court
194
citing judgments

Approval of draft assessment orders under Section 153D must be granted with due application of mind, not mechanically. Approving multiple cases, such as 38 in a single day, without proper scrutiny amounts to mechanical approval, rendering the assessment invalid.

ITO v. TechSpan India (P) Ltd.
92 Taxmann.com 361 · 2018 · Supreme Court
194
citing judgments

Reassessment under Section 147/148 is invalid if it constitutes a mere change of opinion by the Assessing Officer without any fresh tangible material, especially after the assessee made a full and truthful disclosure during the original scrutiny assessment under Section 143(3).

Narayanappa v. CIT
63 ITR 219 · 1967 · Supreme Court
187
citing judgments

The approval required from a higher authority under section 153D of the Income Tax Act is an administrative act, not a quasi-judicial one. Consequently, an opportunity of hearing is not required to be given to the assessee at the stage of obtaining such approval, provided the approving authority is competent.

CIT v. Ralson Industries Ltd. 5
288 ITR 322 · 2007 · Supreme Court
153
citing judgments

The Supreme Court affirmed that lower authorities are bound by decisions of higher authorities due to judicial discipline. It also clarified that the Commissioner, in exercising revisional power under Section 263, can conduct necessary inquiries to determine if an assessment is prejudicial to the Revenue.

Judgments citing scrutiny assessment

Ponnamparambath Ashique, Calicut vs. ACIT Circle 1(1) Tps, Kozhikode

In the result, the appeal filed by the assessee is partly allowed

ITA 606/COCH/2023[2010-11]Status: DisposedITAT Cochin27 Jun 2025AY 2010-11

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2010-11 Ponnamparambath Ashique .......... Appellant Koyenco House, West Hill, Kozhikode 673005 [Pan: Acmpa5569N] Vs. Acit, Circle- 1(1) & Tps, Kozhikode .......... Respondent Appellant By: Smt. Parvathy Ammal, Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 30.05.2025 Date Of Pronouncement: 27.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi [Cit(A)] Dated 19.06.2023 For Assessment Year (Ay) 2010-11. 2. Brief Facts Of The Case Are That The Appellant Is An Individual Deriving Income Under The Head ‘Salary’ & Also Managing Director Og M/S. Platino Classic Motors Pvt. Ltd. The Return Of Income For Ay 2010-11 Was Filed On 17.09.2010 Declaring Total Income Of Rs. 25,18,810/-. There Was No Scrutiny Assessment. Subsequently The Ao Received Information That The Appellant Is Holding Shares Of 25%

For Appellant: Smt. Parvathy Ammal, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 148Section 2(22)(e)

return of income for AY 2010-11 was filed on 17.09.2010 declaring total income of Rs. 25,18,810/-. There was no scrutiny assessment. Subsequently the AO received information that the appellant is holding shares of 25% 2 Ponnamparambath Ashique in M/s. Koyenco Autos (P) Ltd. and holding 62% shares

Mr. Anil Jagannath Kedar, Solapur vs. Ward 1(2), Solapur

In the result, appeal of the assessee is partly allowed

ITA 567/PUN/2024[2017-18]Status: DisposedITAT Pune26 Jun 2025AY 2017-18

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.567/Pun/2024 िनधा"रण वष" / Assessment Year: 2017-18 Mr. Anil Jagannath Kedar, V The Income Tax Officer, At Post-Wasud, Sangola, S Ward-1(2), Solapur. Dist – Solapur – 413307. Maharashtra. Pan : Asvpk0584A Appellant/ Assessee Respondent / Revenue Assessee By Shri Piyush Bafna & Shri Aakash Parakh – Ar’S Revenue By Shri Rajesh Haladkar – Addl.Cit(Dr) Date Of Hearing 25/06/2025 Date Of Pronouncement 26/06/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Addl./Joint Commissioner Of Income Tax(Appeal)-7, Kolkata Passed Under Section 250 Of The Income Tax Act, 1961, For The A.Y.2017-18, Dated 24.01.2024 Emanating From The Assessment Order U/S.144 Of The Income Tax Act, 1961, Dated 19.12.2019. The Assessee Has Raised The Following Grounds Of Appeal : “Appeal

Section 144Section 250

Assessing Officer in making additions in respect of issues not mentioned in limited scrutiny were beyond jurisdiction of the Assessing Officer as the scrutiny assessment was selected for limited scrutiny under Section 143(2) and not complete scrutiny. The Department objected to the additional ground which were raised ... concerned has been placed under suspension. Therefore, it was reiterated that the Assessing Officer should abide by the Instructions of CBDT while completing limited scrutiny assessment and should be scrupulous about maintenance of note sheets in assessment folders. 9. Thus, considering these aspects, we are of the view that

Das Offshore Limited, Mumbai vs. Deputy Commissioner of Income Tax, Circle 1(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 3890/MUM/2023[2012-13]Status: DisposedITAT Mumbai26 Jun 2025AY 2012-13

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2012-13 Das Offshore Limited Deputy Commissioner Of Income Sagar Uday, Plot No. F-3, Tax, Circle 1(2), Agroli, Sector 29, Mumbai Behind Cidco Bhawan, Vs. Cbd Belapur, Navi Mumbai - 400614 Maharashtra (Pan: Aaacd5996K) (Appellant) (Respondent) Present For: Assessee : Mr. Fenil Bhatt, Ramesh Jain, Cas Revenue : Shri. Mahadevan A.M. Krishanan, Addl. Cit Date Of Hearing : 22.04.2025 Date Of Pronouncement : 26.06.2025 O R D E R Per Girish Agrawal: This Appeal Filed By Assessee Is Against The Order Of Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Vide Order No. Itba/Nfac/S/250/2023-24/1055302006(1), Dated 22.08.2023 Passed Against The Assessment Order By Deputy Commissioner Of Income-Tax, Circle 1(2), Mumbai, U/S. 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 27.11.2017 For Assessment Year 2012-13. 2. Grounds Taken By The Assessee Are Reproduced As Under:

For Appellant: Mr. Fenil Bhatt, Ramesh Jain, CAsFor Respondent: Shri. Mahadevan A.M. Krishanan, Addl. CIT
Section 143(3)Section 147

Assessee had originally filed its return on 23.03.2013 reporting total income at Rs.18,46,01,300/-. 3 Das Offshore Ltd. AY 2012-13 Scrutiny assessment u/s.143(3) of the Act was completed on 26.02.2015, assessing total income at Rs.18,51,01,300/-, by making an addition of Rs.5 lacs. Subsequently