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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

Bee Gee Construction Co, Mohali vs. Deputy Commissioner of Income Tax, Circle 3(1), Chandigarh

Appeal stand allowed

ITA 597/CHANDI/2024[2011-12]Status: DisposedITAT Chandigarh16 Jun 2025AY 2011-12

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.597/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2011-12) M/S Bee Gee Construction Co Dcit Sco-1 Neelkanth Shopping Plaza Circle 3 (1) बनाम/ Vs. Chandigarh Road Aaykar Bhawan Nac Zirakpur-140603 Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aahfb-1882-C (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. आयकरअपीलसं./ Ita No.572/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2011-12) Dcit M/S Bee Gee Construction Co Circle 3 (1) बनाम/ Sco-1 Neelkanth Shopping Plaza Aaykar Bhawan Chandigarh Road Vs. Chandigarh Nac Zirakpur-140603 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aahfb-1882-C (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Shri Parikshit Aggarwal (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Sh. Vivek Vardhan (Addl.Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 26-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 16-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Aforesaid Cross-Appeals For Assessment Year (Ay) 2011- 12Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)]

For Appellant: Shri Parikshit Aggarwal (CA) – Ld. ARFor Respondent: Sh. Vivek Vardhan (Addl.CIT) – Ld. Sr. DR
Section 139(1)Section 143(1)Section 143(3)Section 147Section 148Section 80Section 80A

assessee nor enquired into by the AO. In the absence of any clarification and acceptance of the revised return in three successive scrutiny assessment proceedings lead to the inference that the non-inclusion of income/expenditure and asset/liabilities in the original return was a mistake/omission of the assessee. Considering these facts

Deputy Commissioner of Income Tax, Chandigarh vs. Bee Gee Construction Co, Chandigarh

Appeal stand allowed

ITA 572/CHANDI/2024[2011-12]Status: DisposedITAT Chandigarh16 Jun 2025AY 2011-12

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.597/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2011-12) M/S Bee Gee Construction Co Dcit Sco-1 Neelkanth Shopping Plaza Circle 3 (1) बनाम/ Vs. Chandigarh Road Aaykar Bhawan Nac Zirakpur-140603 Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aahfb-1882-C (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. आयकरअपीलसं./ Ita No.572/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2011-12) Dcit M/S Bee Gee Construction Co Circle 3 (1) बनाम/ Sco-1 Neelkanth Shopping Plaza Aaykar Bhawan Chandigarh Road Vs. Chandigarh Nac Zirakpur-140603 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aahfb-1882-C (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Shri Parikshit Aggarwal (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Sh. Vivek Vardhan (Addl.Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 26-05-2025 घोषणाकीतारीख /Date Of Pronouncement : 16-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Aforesaid Cross-Appeals For Assessment Year (Ay) 2011- 12Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)]

For Appellant: Shri Parikshit Aggarwal (CA) – Ld. ARFor Respondent: Sh. Vivek Vardhan (Addl.CIT) – Ld. Sr. DR
Section 139(1)Section 143(1)Section 143(3)Section 147Section 148Section 80Section 80A

assessee nor enquired into by the AO. In the absence of any clarification and acceptance of the revised return in three successive scrutiny assessment proceedings lead to the inference that the non-inclusion of income/expenditure and asset/liabilities in the original return was a mistake/omission of the assessee. Considering these facts

Asst. Commissioner of Income Tax, Central Circle-2(2), Hyderabad vs. Rithwik Projects Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 533/HYD/2020[2011-12]Status: DisposedITAT Hyderabad16 Jun 2025AY 2011-12

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita No.533/Hyd/2020 (िनधा"रण वष"/Assessment Year: 2011-12) Acit Vs. Rithwik Projects (P) Ltd Central Circle 2(2) Hyderabad Hyderabad Pan:Aabcr5748L (Appellant) (Respondent) राज" व "ारा/Revenue By: Smt. U Mini Chandran, Cit(Dr) िनधा""रती "ारा/Assessee By: Shri P Murali Mohan Rao, Ca सुनवाई की तारीख/Date Of Hearing: 22/04/2025 घोषणा की तारीख/Pronouncement: 16P/06/2025 आदेश/Order Per Vijay Pal Raothis Appeal Filed By The Revenue Is Directed Against The Order Dated 27/07/2020 Of The Learned Cit (A)-12, Hyderabad, Relating To A.Y.2011-12. 2. The Revenue Has Raised The Following Grounds Of Appeal: “1. The Learned Cit (A) Erred Boith In Law & On Facts Of The Case. 2. The Learned Cit (A) Erred In Deleting The Addition Of Rs.5,00,00,000/- Towards Amount Received From M/S. Pacl India Ltd Stating That The Amount Received Was Towards Works Contract & The Assessee Had Offered Reasonable

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: Smt. U Mini Chandran, CIT(DR)
Section 143(3)Section 148Section 68

bank account of the assessee and therefore, this fact was very much available with the Assessing Officer at the time of scrutiny assessment passed u/s 143(3) on 27/03/2014 and thereafter on 31/03/2016. Hence, the same cannot be considered as income of the assessee in the 2nd re-assessement proceedings ... Assessing Officer on 31/03/2016. The Assessing Officer has recorded the relevant facts of the return of income filed by the assessee and scrutiny assessment completed u/s 143(3) and thereafter, the re-assessment completed u/s 143(3) r.w.s. 147 in para No.1 of the assessment order as under: Page

Vision Exports, Moradabad vs. Assistant Commissioner of Income Tax, Central Circle, Moradabad

The appeal of the assessee is allowed

ITA 2361/DEL/2023[2017-18]Status: DisposedITAT Delhi13 Jun 2025AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year: 2017-18 Vision Exports, Vs Acit, Faridpur, Sambhal Road, Central Circle, Moradabad – 244 001, Moradabad. Uttar Pradesh. Pan: Aajfv0634Q (Appellant) (Respondent) Assessee By : Shri Chetan Agarwal, Ca; Shri Mohammad Ammar, Ca & Shri Tariq Nafees, Advocate Revenue By : Shri Amit Katoch, Sr. Dr Date Of Hearing : 23.04.2025 Date Of Pronouncement : 13.06.2025 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Assessee Against The Order Dated 23.06.2023 Of The Commissioner Of Income-Tax (Appeals), Lucknow-3 (Hereinafter Referred To As The Ld. First Appellate Authority Or ‘The Ld. Faa’, For Short) In Appeal No.Cit(A), Lucknow-3/10314/2018-19 Arising Out Of The Appeal Before It Against The Order Dated 30.12.2018 Passed U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By The Acit, Central Circle, Moradabad (Hereinafter Referred To As The Ld. Ao).

For Appellant: Shri Chetan Agarwal, CAFor Respondent: Shri Amit Katoch, Sr. DR
Section 127Section 132Section 142(1)Section 143(2)Section 143(3)

filed its Return of Income on November 7, 2017, declaring a total income of Rs 3,03,06,350/-. The case was selected for scrutiny assessment, and consequently, a notice under section 143(2) was issued on September 17, 2018, followed by a notice under section 142(1). On December ... surrendered amount by filing any retraction letter, yet did not include the amount in the return of income. The case was then selected for scrutiny assessment, and after issuing mandatory notices the assessment was completed. The ld. Assessing Officer completed the assessment, including the disclosed Rs. 9.85 crores as undisclosed