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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

DCIT(Central)-1, Raipur vs. Kalmesh Kumar Kesharwani, Raipur

In the result, appeal filed by the assessee in ITA No

ITA 138/RPR/2024[2015-16]Status: DisposedITAT Raipur10 Feb 2025AY 2015-16

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

DCIT(Central)-1, Raipur vs. Kalmesh Kumar Kesharwani, Raipur

In the result, appeal filed by the assessee in ITA No

ITA 136/RPR/2024[2014-15]Status: DisposedITAT Raipur10 Feb 2025AY 2014-15

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

DCIT(Central)-1, Raipur vs. Kalmesh Kumar Kesharwani, Raipur

In the result, appeal filed by the assessee in ITA No

ITA 135/RPR/2024[2013-14]Status: DisposedITAT Raipur10 Feb 2025AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

Kamlesh Kumar Kesharwani, Raipur vs. Assistant Commissioner of Income Tax-1(1), Raipur

In the result, appeal filed by the assessee in ITA No

ITA 124/RPR/2024[2015-16]Status: DisposedITAT Raipur10 Feb 2025AY 2015-16

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

Kamlesh Kumar Kesharwani, Raipur vs. Assistant Commissioner of Income Tax-1(1), Raipur

In the result, appeal filed by the assessee in ITA No

ITA 123/RPR/2024[2014-15]Status: DisposedITAT Raipur10 Feb 2025AY 2014-15

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

Kamlesh Kumar Kesharwani, Raipur vs. Assistant Commissioner of Income Tax-1(1), Raipur

In the result, appeal filed by the assessee in ITA No

ITA 122/RPR/2024[2013-14]Status: DisposedITAT Raipur10 Feb 2025AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos.122, 123 & 124/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 Kamlesh Kumar Kesharwani 112, Janta Colony, Gudhiyari, Raipur (C.G.)-492 001 Pan: Aewpk6876Q .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(1), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita Nos.135, 136 & 138/Rpr/2024 "नधा"रण वष" / Assessment Years : 2013-14, 2014-15 & 2015-16 The Deputy Commissioner Of Income Tax-(Central)-1, Raipur (C.G.)

For Appellant: Shri Sunil Kumar Agrawal &For Respondent: Shri S.L Anuragi, CIT-DR
Section 133ASection 143(3)Section 148Section 151Section 151(2)

underassessed. Apart from that, we find that the A.O while recording the “reasons to believe”, had at the threshold stated that scrutiny assessment in the case of the assessee was framed u/s. 143(3) r.w.s. 144 of the Act, dated 31.03.2016, wherein his income was assessed at Rs.33 ... commission income which has been added by the Ld AO in the A. Y. 2013-14 (i.e. in original scrutiny assessment dated 31.03.2016), which has not disputed by the assessee and since, it is not dispL4ed by the assessee in first appellate proceedings before your Honor, it means, the alleged

M/S Suncity Niketan Pvt.Ltd., Kolkata vs. Income Tax Officer, 5(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 2101/KOL/2024[2013-14]Status: DisposedITAT Kolkata07 Feb 2025AY 2013-14

Bench: Shri Sanjay Garg & Shri Sanjay Awasthii.T.A. No.2101/Kol/2024 Assessment Year: 2013-14 M/S Suncity Niketan Pvt. Ltd………………....….......…....………....Appellant 5, Clive Row, Kolkata -1. [Pan: Aapcs4157E] Vs. Ito, Ward-5(1), Kolkata......................................................…..…..... Respondent Appearances By: Shri Manoj Kataruka, Advocate, Appeared On Behalf Of The Appellant. Shri Subhendu Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 12, 2024 Date Of Pronouncing The Order : February 07, 2025 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 06.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Is Aggrieved By The Action Of The Ld. Cit(A) In Confirming The Addition Of Rs.17,99,28,555/- Made By The Assessing Officer By Treating Credits In The Account Of The Assessee As Income Of The Assessee From Unexplained Sources. The Assessee Apart From Challenging The Validity Of The Additions Made/Confirmed By The Lower Authorities On Merits, Has Also Contested The Very Validity Of The Reopening Of The Assessment Order As Well As The Validity Of The Assessment Order For Want Of Issue Of Notice U/S 143(2) Of The Act.

Section 143(2)Section 147Section 250

declaring total income of Rs.3,950/- Processing us.143[1] of the Act was completed on 14/04/2014 accepting the returned income. No scrutiny assessment has been made in this case. In the case, on the basis of enquiry and information in the possession of the undersigned which has been received from