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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

Tulsi Reality, Vadodara vs. The Pr. CIT-1, Vadodara

The appeal of the assessee is dismissed

ITA 134/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad30 Jan 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.134/Ahd/2022 िनधा"रण वष" /Assessment Year : 2017-18 Tulsi Reality The Pr.Cit-1 बनाम/ G5 Anand Deep Complex Vadodara – 390 007 V/S. Gotri Road (Gujarat) Gotri, Vadodara – 390 021 (Gujarat) "थायी लेखा सं./Pan: Aafft 8908 B (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee By : Ms. Urvashi Shodhan, Ar Revenue By : Shri Prathvi Raj Meena, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 27/01/2025 घोषणा की तारीख /Date Of Pronouncement: 30/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Is Filed By The Assessee Against The Order Dated 29.03.2022 Passed By The Ld. Principal Commissioner Of Income Tax, Vadodara-1 (Hereinafter Referred To As "Pcit") Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") For The Assessment Year (Ay) 2017- 18, Setting Aside The Assessment Order Passed By The Assessing Officer (Hereinafter Referred To As “Ao”) Under Section 143(3) Of The Act Dated 12.12.2019. Tulsi Reality Vs. The Pr.Cit-1 Asst. Year : 2017-18

For Appellant: Ms. Urvashi Shodhan, ARFor Respondent: Shri Prathvi Raj Meena, CIT-DR
Section 115BSection 131Section 133ASection 142(1)Section 143(2)Section 143(3)Section 263Section 269SSection 271DSection 37(1)

Reality vs. The Pr.CIT-1 Asst. Year : 2017-18 4 1. Ld. Pr. CIT Vadodara-1 erred in law and on facts revising a scrutiny assessment order which is neither erroneous nor prejudicial to the interest of revenue. 2. The action of ld. Pr. CIT revising an order passed after ... alleged ground of possible violation of Sec. 269ST and 274DA inserted w.e.f. 01.04.2017. 5. Ld. Pr. CIT erred in law and on facts revising scrutiny assessment order relying on Hon'ble Delhi high court judgments on completely different set of facts. Your appellant craves leave to add, amend, alter, edit

Dharmesh Kalidas Patel, Ahmedabad vs. DCIT, Central Circle-1(1), Ahmedabad

In the result, the appeal filed by the Revenue is dismissed, whereas the appeal filed by the assessee is allowed for statistical purposes

ITA 276/AHD/2021[2017-18]Status: DisposedITAT Ahmedabad30 Jan 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarassessment Year : 2017-18 Dharmesh Kalidas Patel, The Dy. Commissioner Of Vs 8/A, Sankalp Apartment, Income-Tax, Opp. Shraddha Petrol Pump, Central Circle 1(1), Judges Bungalow Road, Ahmedabad Bodakdev, Ahmedabad-380054 [Pan: Aaypp 0258 P] Assessment Year : 2017-18 The Dy. Commissioner Of Dharmesh Kalidas Patel, Vs Income-Tax, 8/A, Sankalp Apartment, Central Circle 1(1), Opp. Shraddha Petrol Pump, Ahmedabad Judges Bungalow Road, Bodakdev, Ahmedabad- 380054 [Pan: Aaypp 0258 P] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Mehul Thakker, Ca Revenue By : Shri Rignesh Das, Sr Dr सुनवाई क" तार"ख/Date Of Hearing : 28.01.2025 घोषणा क" तार"ख /Date Of Pronouncement : 30.01.2025 आदेश/O R D E R Per T.R. Senthil Kumar:

For Appellant: Shri Mehul Thakker, CAFor Respondent: Shri Rignesh Das, Sr DR
Section 143(3)Section 68Section 69A

filed his original return of income on 31.10.2017 declaring total income of Rs.50,810/- for the year under consideration. The return was selected for scrutiny assessment. The Assessing Officer made addition on account of unsecured loans totaling to Rs.1,77,35,750/- from various parties on the ground that

Abhishek Bhutra, Kolkata vs. ACIT, Cir-38, Midnapore, Midnapur

In the result, appeal of the assessee is allowed

ITA 242/KOL/2023[2017-18]Status: DisposedITAT Kolkata30 Jan 2025AY 2017-18

Bench: Shri Sanjay Gargi.T.A No.242/Kol/2023 Assessment Year: 2017-18 Abhishek Bhutra..….…....………………………… ........................……Appellant C/O S. N. Ghosh & Associates, Advocate 2, Garstin Place, 2Nd Floor, Suite No.203, Off Hare Street, Kol-1. [Pan: Ahupb6924D] Vs. Acit, Circle-38, Midnapore...............…................…........……...…..…..Respondent Appearances By: Shri Somnath Ghosh, Advocate, Appeared On Behalf Of The Appellant. Shri Manas Mondal, Addl. Cit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 23, 2024 Date Of Pronouncing The Order : January 30, 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 14.02.2023 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 Made By The Assessing Officer Of Rs.32,76,000/- On Account Of Unexplained Cash Deposits In Bank Account Of The Assessee Treating The Same As Income Of The Assessee From Undisclosed Sources. The Assessee, An Individual, Was Engaged In Wholesale Dealing In Mobile Handsets Of Different Companies Under The Name & Style Of “Ub Starcom”. The Assessee Filed His Return Of Income U/S 139(1) Of The Act On 01.11.2017 Disclosing A Total Income At Rs.15,34,300/- For The Assessment Year Under Dispute. The Notice U/S

Section 120Section 139(1)Section 143(2)Section 143(3)Section 250

taxmann.com 89 (Kolkata-Trib.) held as follows:- “Return of income of assessee was Rs. 12 lakhs - As per CBDT instruction, jurisdiction for scrutiny assessment vested in Income-tax Officer and notice under section 143(2) must be issued by Income-tax Officer, Ward-I, Haldia and none other - But, notice ... fact that the Notice under Section 143(2) of the said Act is issued only once at the time of initiating of the scrutiny assessment, thereafter mere change of jurisdictional Assessing Officer within the same Range and/or Pr.CIT cannot affect the assessment proceedings?” 5. On the above substantial questions

Income Tax Officer, Chennai vs. Macmillan Education India Private Limited, Chennai

In the result, the appeal filed by the revenue and cross objection filed by the assessee are dismissed

ITA 2036/CHNY/2024[2013-14]Status: DisposedITAT Chennai30 Jan 2025AY 2013-14

Bench: Shri Aby T Varkey, Hon’Ble & Shri S.R.Raghunatha, Hon’Bleआयकर अपीलसं./Ita No.: 2036/Chny/2024 & Co No.: 66/Chny/2024 िनधा"रणवष" / Assessment Year: 2013-14 Income Tax Officer, Macmillan Education India Corporate Ward -4(1), V. Private Limited, Chennai – 600 034. No.21, Patullos Road, Chennai – 600 002. [Pan:Aafcm-5564-R] (अपीलाथ"/Appellant) (Respondent/Cross Objector) Assessee By : Mr. S.P. Chidambaram, Advocate : Ms. R. Anita, Addl.Cit Department By सुनवाई क" तार"ख/Date Of Hearing : 22.11.2024 घोषणा क" तार"ख/Date Of Pronouncement : 30.01.2025 आदेश /O R D E R

For Appellant: Mr. S.P. Chidambaram, Advocate
Section 143(2)Section 147

A.Y.2013-14 and later filed Revised return of income on 29.11.2014. Subsequently, Notice under Section 143(2) of the Act was issued for scrutiny assessment. After detailed discussions and verification of various documents filed during the course of scrutiny assessment, the same was completed vide order dated 15.12.2016 without any additions/disallowances ... assessee stated that the for the AY 2013-14, after detailed discussions and verification of various documents filed during the course of scrutiny assessment, the assessment was completed vide order dated 15.12.2016 without any additions/disallowances and by accepting the returned income as total income. Subsequently, Notice under Section