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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

Srimanta Kumar Shit, Purba Medinapore vs. A.C.I.T., Circle - 27(2), Haldia

In the result, the appeal of the assessee is allowed

ITA 1911/KOL/2024[2017-2018]Status: DisposedITAT Kolkata19 Nov 2024AY 2017-2018

Bench: Shri Rajpal Yadav, Vice- & Shri Rajesh Kumari.T.A. No. 1911/Kol/2024 Assessment Year: 2017-2018 Srimanta Kumar Shit,………………...…………Appellant Rangamalaput, Junput-Contai, Purba Medinapore-721450, West Bengal [Pan:Bffps3635Q] -Vs.- Assistant Commissioner Of Income Tax..…Respondent Circle-27(2), Haldia, Basudebpur, Talpukur, Khanjan Chak, Haldia, Midnapore-721101, W.B. Appearances By: Shri S.K. Tulsiyan, Advocate & Lata Goyal, Ca, Appeared On Behalf Of The Assessee Shri Subhendu Datta, Cit, D.R., Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : October 22, 2024 Date Of Pronouncing The Order : November 19, 2024 O R D E R

Section 133(6)Section 142(1)Section 143(2)Section 143(3)Section 144Section 250Section 56(2)(vii)Section 69A

concerned has been placed under suspension. Therefore, it was reiterated that the Assessing Officer should abide by the Instructions of CBDT while completing limited scrutiny assessment and should be scrupulous about maintenance of note sheets in assessment folders. In support reliance is placed on the decision ... direct nexus between the available material and formation of such view. 4.It is further clarified that in cases under 'Limited Scrutiny’, the scrutiny assessment proceedings would initially be confined only to issues under 'Limited Scrutiny and questionnaires, enquiry, investigation etc. would be restricted to such issues. Only upon conversion

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Swami Vivekanand Medical Mission, Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 3531/MUM/2024[2020-21]Status: DisposedITAT Mumbai19 Nov 2024AY 2020-21

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2020-21 & Assessment Year: 2020-21 Dy. Commissioner Of Income Swami Vivekanand Tax (Exemptions)-2(1), Medical Mission Room No. 608, 6Th Floor, Peddar C/O Sanjivani Hospital, Vs. Road, Cumbala Hill, Datta Mandir Road, Mumbai - 400026 Virar(W) Mumbai – 401303 Pan: Aabts9185K (Appellant) (Respondent) Present For: Assessee By : Shri Anil Sathe,Ca Revenue By : Shri Dr Kishore Dhule,Cit(Dr) Date Of Hearing : 28.10.2024 Date Of Pronouncement : 19.11.2024 O R D E R Per : Prabhash Shankar: The Above Two Appeals Filed By The Revenue Emanate From The Appellate Order Passed By The Ld. Cit(A)/National Faceless Appeal Centre (Nfac), Delhi, With Regard To The Assessment/Penalty Orders Passed Under Section 143(3) & 270A Of The Income Tax Act 1961, (In Short ‘The Act’) For The A.Y. 2020-21. 2. We Take Up The Quantum Appeal First Relating To Assessment Order In Ita No.3531/M/2024 Assessment Year: 2020-21. The Revenue Has Raised Following Grounds Of Appeal :

For Appellant: Shri Anil Sathe,CAFor Respondent: Shri Dr Kishore Dhule,CIT(DR)
Section 11Section 143(3)Section 2(15)

current year, rather, it continued the same operations as in previous years, which were previously accepted by the Income Tax Department in the scrutiny assessments. Moreover, the same issue was raised by the department during the scrutiny assessment for the assessment year 2022-23 too but no addition was finally

Dy. Commissioner of Income Tax(Exemptions)-2(1), Mumbai vs. Swami Vivekanand Medical Mission, Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 3530/MUM/2024[2020-21]Status: DisposedITAT Mumbai19 Nov 2024AY 2020-21

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2020-21 & Assessment Year: 2020-21 Dy. Commissioner Of Income Swami Vivekanand Tax (Exemptions)-2(1), Medical Mission Room No. 608, 6Th Floor, Peddar C/O Sanjivani Hospital, Vs. Road, Cumbala Hill, Datta Mandir Road, Mumbai - 400026 Virar(W) Mumbai – 401303 Pan: Aabts9185K (Appellant) (Respondent) Present For: Assessee By : Shri Anil Sathe,Ca Revenue By : Shri Dr Kishore Dhule,Cit(Dr) Date Of Hearing : 28.10.2024 Date Of Pronouncement : 19.11.2024 O R D E R Per : Prabhash Shankar: The Above Two Appeals Filed By The Revenue Emanate From The Appellate Order Passed By The Ld. Cit(A)/National Faceless Appeal Centre (Nfac), Delhi, With Regard To The Assessment/Penalty Orders Passed Under Section 143(3) & 270A Of The Income Tax Act 1961, (In Short ‘The Act’) For The A.Y. 2020-21. 2. We Take Up The Quantum Appeal First Relating To Assessment Order In Ita No.3531/M/2024 Assessment Year: 2020-21. The Revenue Has Raised Following Grounds Of Appeal :

For Appellant: Shri Anil Sathe,CAFor Respondent: Shri Dr Kishore Dhule,CIT(DR)
Section 11Section 143(3)Section 2(15)

current year, rather, it continued the same operations as in previous years, which were previously accepted by the Income Tax Department in the scrutiny assessments. Moreover, the same issue was raised by the department during the scrutiny assessment for the assessment year 2022-23 too but no addition was finally

Nawal Kishore Rajgarhia, Kolkata vs. D.C.I.T., Circle - 3(1), Kolkata

The appeal of the assessee is partly allowed as indicated above

ITA 1884/KOL/2024[2015-2016]Status: DisposedITAT Kolkata18 Nov 2024AY 2015-2016

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmai.T.A. No.1884/Kol/2024 Assessment Year: 2015-16 Nawal Kishore Rajgarhia…………………………………………….…..……Appellant C/O Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2Nd Floor, Kolkata – 700069. [Pan: Acqpr3401G] Vs. Dcit, Circle-3(1), Kolkata............…..….…..….........……........……...…..…..Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri Pradip Biswas, Addl. Cit- Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 30, 2024 Date Of Pronouncing The Order : November 18, 2024 Order Per Sonjoy Sarma: The Present Appeal Is Filed By The Assessee Against The Order Dated 31.07.2023 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 Filed His Return Of Income On 14.08.2015 Declaring A Total Income Of Rs.38,62,700/-. The Return Was Selected For Limited Scrutiny On Two Specific Issues: I. Gross Interest Shown In Schedule Os Of Itr Is Less Than Interest Receipt Reported In 26As. Ii. Large Value Sale Of Option In Securities (Derivative) In A Recognized Stock Exchange & No Business Income Declared By The Assessee (Stt Code-4)

Section 143(2)Section 250Section 68

rival submissions of both the parties and on careful consideration of the facts, submissions and judicial precedents, find that the Assessing Officer initiated limited scrutiny assessment on two specific issues. The addition of Rs.6,47,446/- (sale proceeds of shares) invoking section 68 of the Act and disallowance of long ... addition or disallowance on the issues as the Assessing Officer was not supposed to examine any other issue except the issue for which the scrutiny assessment was ordered. The Assessing Officer was supposed to get approval of the competent authority for converting the aforesaid limited scrutiny into full scrutiny

Assistant Commissioner of Income-Tax, Madurai vs. Natarajan Sathishkumar, Palani

Appeals stand dismissed

ITA 198/CHNY/2024[2020-21]Status: DisposedITAT Chennai18 Nov 2024AY 2020-21

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.196/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Gurusamy Dhanasekaran बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Abtpd-3576-G (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. आयकरअपील सं./ Ita No.197/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Natarajan Saravanakumar बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Azcps-8604-B (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपील सं./ Ita No.198/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Natarajan Satishkumar बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Auhps-8894-H (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. R. Anita (Addl.Cit)-Ld. Dr ""थ"कीओरसे/Respondent By : Shri S. Sridhar (Advocate)-Ld. Ar सुनवाईकीतारीख/Date Of Hearing : 29-08-2024 घोषणाकीतारीख /Date Of Pronouncement : 18-11-2024

For Appellant: Ms. R. Anita (Addl.CIT)-Ld. DRFor Respondent: Shri S. Sridhar (Advocate)-Ld. AR
Section 144Section 153C

assessee disclosed sum of Rs.163.20 Lacs in the wealth tax returns filed by the assessee and the same was accepted by Ld. AO in scrutiny assessment proceedings vide order dated 18-03-2022. The aforesaid tabulation as made by the assessee in support of balances available for appropriation was also

Assistant Commissioner of Income-Tax, Madurai vs. Natarajan Saravanakumar, Palani

Appeals stand dismissed

ITA 197/CHNY/2024[2020-21]Status: DisposedITAT Chennai18 Nov 2024AY 2020-21

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.196/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Gurusamy Dhanasekaran बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Abtpd-3576-G (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. आयकरअपील सं./ Ita No.197/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Natarajan Saravanakumar बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Azcps-8604-B (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपील सं./ Ita No.198/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) Acit Shri Natarajan Satishkumar बनाम/ Central Circle-1 No.6/1, Sithanathan Street, Vs. Madurai. Palani, Dindigul Dist.-624 601. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Auhps-8894-H (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. R. Anita (Addl.Cit)-Ld. Dr ""थ"कीओरसे/Respondent By : Shri S. Sridhar (Advocate)-Ld. Ar सुनवाईकीतारीख/Date Of Hearing : 29-08-2024 घोषणाकीतारीख /Date Of Pronouncement : 18-11-2024

For Appellant: Ms. R. Anita (Addl.CIT)-Ld. DRFor Respondent: Shri S. Sridhar (Advocate)-Ld. AR
Section 144Section 153C

assessee disclosed sum of Rs.163.20 Lacs in the wealth tax returns filed by the assessee and the same was accepted by Ld. AO in scrutiny assessment proceedings vide order dated 18-03-2022. The aforesaid tabulation as made by the assessee in support of balances available for appropriation was also