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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

Assistant Commissioner of Income-Tax, Madurai vs. Alba Industries Limited, Chennai

ITA 284/CHNY/2024[2016-17]Status: DisposedITAT Chennai26 Nov 2024AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.282 To 287/Chny/2024 निर्धारणवर्ष/Assessment Years: 2014-15 To 2019-20 & Cross-Objection Nos.20 To 25/Chny/2024 निर्धारणवर्ष/Assessment Years: 2014-15 To 2019-20 The Acit, Central Circle-1, Madurai-625 002. (अपीलार्थी/Appellant) V. M/S. Alba Industries Ltd., No.32/2, Halls Road, Egmore, Chennai-600 008. [Pan: Aabcb 5758 J] (प्रत्यर्थी/Respondent / Objector) Cross- Department By Assessee By सुनवाईकीतारीख/Date Of Hearing घोषणाकीतारीख /Date Of Pronouncement Mr. R. Clement Ramesh Kumar, Cit Mr. S. Sridhar, Advocate 04.09.2024 26.11.2024 आदेश / Order Per Aby T. Varkey, Jm: These Appeals Preferred By The Revenue & The Cross-Objections By The Assessee Are Arising Out Of The Appellate Orders Passed By The Learned Commissioner Of Income Tax (Appeals)-19, Chennai [In Short 'Cit(A)'] In Relation To The Assessment Orders All Dated 27.08.2021 Passed U/S 143(3)/153A Of The Income-Tax Act, 1961 [In Short `The Act'] For The

Section 132Section 132(4)Section 143(3)Section 153A

आयकर अपीलीय अधिकरण, 'सी' न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिक

Assistant Commissioner of Income-Tax, Madurai vs. Alba Industries Limited, Chennai

ITA 282/CHNY/2024[2014-15]Status: DisposedITAT Chennai26 Nov 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.282 To 287/Chny/2024 निर्धारणवर्ष/Assessment Years: 2014-15 To 2019-20 & Cross-Objection Nos.20 To 25/Chny/2024 निर्धारणवर्ष/Assessment Years: 2014-15 To 2019-20 The Acit, Central Circle-1, Madurai-625 002. (अपीलार्थी/Appellant) V. M/S. Alba Industries Ltd., No.32/2, Halls Road, Egmore, Chennai-600 008. [Pan: Aabcb 5758 J] (प्रत्यर्थी/Respondent / Cross- Objector) Department By : Mr. R. Clement Ramesh Kumar, Cit Assessee By : Mr. S. Sridhar, Advocate सुनवाईकीतारीख/Date Of Hearing : 04.09.2024 घोषणाकीतारीख /Date Of Pronouncement : 26.11.2024 आदेश / Order Per Aby T. Varkey, Jm: These Appeals Preferred By The Revenue & The Cross-Objections By The Assessee Are Arising Out Of The Appellate Orders Passed By The Learned Commissioner Of Income Tax (Appeals)-19, Chennai [In Short 'Cit(A)'] In Relation To The Assessment Orders All Dated 27.08.2021 Passed U/S 143(3)/153A Of The Income-Tax Act, 1961 [In Short `The Act'] For The

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh
Section 132Section 132(4)Section 143(3)Section 153A

आयकर अपीलीय अधिकरण, 'सी' न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिक

Assistant Commissioner of Income-Tax, Madurai vs. Beach Minerals Sands Company, Tirunelveli

ITA 1475/CHNY/2023[2017-18]Status: DisposedITAT Chennai26 Nov 2024AY 2017-18

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.1473 To 1475/Chny/2023 निर्धारणवर्ष/Assessment Years: 2015-16 To 2017-18 & Cross-Objection Nos. 28 To 30/Chny/2024 निर्धारणवर्ष/Assessment Years: 2015-16 To 2017-18 & आयकर अपील सं./Ita Nos.13 & 14/Chny/2024 निर्धारणवर्ष/Assessment Years: 2013-14 & 2014-15 & Cross-Objection Nos. 26 & 27/Chny/2024 निर्धारणवर्ष/Assessment Years: 2013-14 & 2014-15 The Acit, Central Circle-1, Madurai-625 002. (अपीलार्थी/Appellant) V. M/S.Beach Minerals Sands Co, 132, Tiruchendur Road, Kuttam, Tirunelveli-627 651. [Pan: Aacfb 5680 P] (प्रत्यर्थी/Respondent / Cross- Objector) Department By : Mr. R. Clement Ramesh Kumar, Cit Assessee By : Mr. S. Sridhar, Advocate सुनवाईकीतारीख/Date Of Hearing : 04.09.2024 घोषणाकीतारीख /Date Of Pronouncement : 26.11.2024 आदेश / Order Per Aby T. Varkey, Jm: These Appeals Preferred By The Revenue & The Cross-Objections By The Assessee Are Arising Out Of The Appellate Orders Passed By The Learned

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh
Section 132Section 132(4)Section 143(3)Section 153A

inability to produce the supporting bills and vouchers. The case of the appellant for the instant Assessment Year was subjected to regular scrutiny assessment u/s 143(3) vide order dated 08.03.2016. As evident from the contents of the said Assessment Order, the AD required the appellant to produce the bills