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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

Thenraj, Chennai vs. ITO, Ncw-8(2), Chennai

ITA 3123/CHNY/2024[2017-18]Status: DisposedITAT Chennai21 Mar 2025AY 2017-18

Bench: Shri George George K, Hon'Ble & Shri S.R. Raghunatha, Hon'Bleshri Thenraj, The Income Tax Officer, Chennai Sun Power, Non-Corporate Ward 8(2) No.17/3, Erikarai Street, Chennai. Nerkundram, Chennai- 600107. (प्रत्यर्थी/Respondent) [Pan:Adlpt-9671-J] (अपीलार्थी/Appellant) अपीलार्थी की ओर से/Appellant By : Shri N.Arjun Raj, Advocate प्रत्यर्थी की ओर से/Respondent By : Ms. Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 27.02.2025 घोषणा की तारीख/Date Of Pronouncement : 21.03.2025 आदेश /O R Der Per S. R. Raghunatha: This Appeal By The Assessee Is Filed Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi, For The Assessment Year 2017-18, Dated 15.10.2024. 2. The Assessee Has Raised The Following Grounds Of Appeal: :-2-:

For Appellant: Shri N.Arjun Raj, AdvocateFor Respondent: Ms. Gouthami Manivasagam, JCIT
Section 69Section 69A

year 2017-18 on 28.10.2017, admitting an income of Rs.10,91,350/- including rental income of Rs.3,00,000/-. The return was selected for scrutiny assessment under CASS to verify cash deposit during the year. Accordingly, :-4-: ITA. No:3123/Chny/2024 notices u/s.143(2) and 142(1) of the Act were ... audit report in Form No.3CB 2 3. 23.10.2017 Audited financials for Assessment year 12 2017-18 :-8-: ITA. No:3123/Chny/2024 4. 05.12.2019 SCRUTINY ASSESSMENT PROCEEDINGS Scrutiny assessment order passed under 17 section 143(3) of the Act FIRST APPELLATE PROCEEDINGS 5. 04.12.2021 1st Written Submissions filed before the 25 First

Godrej Agrovet Limited, Mumbai vs. Principal Commissioner of Income Tax, Mumbai-6, Mumbai

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

ITA 2223/MUM/2024[2018-2019]Status: DisposedITAT Mumbai20 Mar 2025AY 2018-2019

Bench: Shri Amarjit Singhshri Sandeep Singh Karhailgodrej Agrovet Limited, C/O Kalyaniwalla & Mistry Llp, Esplanade House, 29, Hazarimal Somani Marg, Fort Mumbai, Mumbai – 400079 ……………. Appellant Maharashtra Pan – Aaacg0617Q V/S Principal Commissioner Of Income Tax, Mumbai -6, Room No.51, 5Th Floor, ……………. Respondent Aaykar Bhavan, Maharishi Karve Road, Mumbai - 400020 Maharashtra Assessee By : Shri Percy J. Pardiwalla, Sr. Adv. Shri Jeet Kamdar, Adv. Revenue By : Shri Himanshu Joshi, Sr. Dr Shri Dr. Kishor Dhule, Cit - Dr

For Appellant: Shri Percy J. Pardiwalla, Sr. AdvFor Respondent: Shri Himanshu Joshi, Sr. DR
Section 142(1)Section 143(2)Section 143(3)Section 144BSection 14ASection 263Section 32Section 35C

during the assessment proceedings and the reply filed by the assessee thereto, we find that this issue was specifically raised during the scrutiny assessment proceedings and the same was duly replied to by the assessee. Therefore, from the multiple notices issued by the AO on this issue from time ... facts and circumstances of the present case, we are of the considered view that this issue was duly examined by the AO during the scrutiny assessment proceedings. Therefore, the impugned revision order passed under section 263 of the Act on this issue is set aside. 12. The last issue with