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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

Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad vs. Lycos Internet Limited, Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 1550/HYD/2017[2012-13]Status: DisposedITAT Hyderabad22 Jan 2025AY 2012-13

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.1550/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Asstt. Commissioner Of Vs. Lycos Internet Ltd Income Tax, Circle 16 (1) Hyderabad Hyderabad Pan:Aaacl5827B (Appellant) (Respondent) आ.अपी.सं /Ita No.1769/Hyd/2018 (िनधा"रण वष"/Assessment Year: 2012-13) Lycos Internet Ltd Vs. Asstt. Commissioner Of Hyderabad Income Tax, Circle 16 (1) Pan:Aaacl5827B Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri P Murali Mohan Rao, Ca राज" व "ारा/Revenue By:: Shri B Bala Krishna, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 16/12/2024 घोषणा की तारीख/Pronouncement: 22/01/2025 आदेश/Order Per Vijay Pal Raothese Are Two Appeals, One By The Department Against The Order Dated 23/06/2017 Of The Learned Cit (A) & Another By The Assessee Against The Revision Order Dated 26/02/2018 Passed

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: : Shri B Bala Krishna, CIT(DR)
Section 14ASection 263

LYCOS Internet Ltd Rs.11,68,93,844/- and book profit u/s 115JB of the Act was admitted at Rs.32,82,86,986/-. During the scrutiny assessment u/s 143(3), the Assessing Officer has made various disallowances and computed the taxable income under the normal provisions of the Act at Rs.3 ... learned CIT (A) in ITA No.1550/Hyd/2017. Thus, the learned AR has submitted that all the details and return of income was under the scrutiny assessment u/s 143(3) and further it was subjected to scrutiny by the learned CIT (A). He has referred the show-cause notice issued

Happee Wines, Puducherry vs. ACIT Cricle 1 Puducherry, Puducherry

The appeal of the assessee stands partly allowed

ITA 2207/CHNY/2024[2017-18]Status: DisposedITAT Chennai22 Jan 2025AY 2017-18

Bench: Hon’Ble Shri S.S. Viswanethra Ravi, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.1564/Chny/2024 (िनधा)रण वष) / Assessment Year: 2017-18) Acit M/S. Happee Wines बनाम # 2/6, Thottakal Main Road, Circle -1, Puducherry. Karamanikuppam / Vs. Puducherry-605 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadfh-2419-M (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2. आयकरअपील सं./ Ita No.2207/Chny/2024 (िनधा)रण वष) / Assessment Year: 2017-18) M/S. Happee Wines Acit बनाम # 2/6, Thottakal Main Road, Circle -1, Karamanikuppam Puducherry. / Vs. Puducherry-605 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadfh-2419-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri D. Anand (Advocate) - Ld. Ar " थ"कीओरसे/Revenue By : Shri R. Raghupathy (Addl.Cit) - Ld. Sr. Dr सुनवाई की तारीख/Date Of Hearing : 17-12-2024 घोषणा की तारीख /Date Of Pronouncement : 22-01-2025 आदेश / O R D E R

For Appellant: Shri D. Anand (Advocate) - Ld. ARFor Respondent: Shri R. Raghupathy (Addl.CIT) - Ld. Sr. DR
Section 143(3)

turnover by doing good marketing. Hence the appellant has to incur sales promotions expenses for marketing its products. 5. ln the case of appellant scrutiny assessment has been completed for the A.Y 2012- 13, A.Y 20 13-14 and A.Y 2014-15. While completing the assessment u/s.143(3) the Assessing

Assistant Commissioner of Income Tax, Circle 1, Puducherry vs. Happee Wines, Puducherry

The appeal of the assessee stands partly allowed

ITA 1564/CHNY/2024[2017-18]Status: DisposedITAT Chennai22 Jan 2025AY 2017-18

Bench: Hon’Ble Shri S.S. Viswanethra Ravi, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.1564/Chny/2024 (िनधा)रण वष) / Assessment Year: 2017-18) Acit M/S. Happee Wines बनाम # 2/6, Thottakal Main Road, Circle -1, Puducherry. Karamanikuppam / Vs. Puducherry-605 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadfh-2419-M (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2. आयकरअपील सं./ Ita No.2207/Chny/2024 (िनधा)रण वष) / Assessment Year: 2017-18) M/S. Happee Wines Acit बनाम # 2/6, Thottakal Main Road, Circle -1, Karamanikuppam Puducherry. / Vs. Puducherry-605 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadfh-2419-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Assessee By : Shri D. Anand (Advocate) - Ld. Ar " थ"कीओरसे/Revenue By : Shri R. Raghupathy (Addl.Cit) - Ld. Sr. Dr सुनवाई की तारीख/Date Of Hearing : 17-12-2024 घोषणा की तारीख /Date Of Pronouncement : 22-01-2025 आदेश / O R D E R

For Appellant: Shri D. Anand (Advocate) - Ld. ARFor Respondent: Shri R. Raghupathy (Addl.CIT) - Ld. Sr. DR
Section 143(3)

turnover by doing good marketing. Hence the appellant has to incur sales promotions expenses for marketing its products. 5. ln the case of appellant scrutiny assessment has been completed for the A.Y 2012- 13, A.Y 20 13-14 and A.Y 2014-15. While completing the assessment u/s.143(3) the Assessing