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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

M/S Eureka Forbs Ltd, Kolkata vs. D.C.I.T Cir - 10(1), Kolkata

In the result, all the four appeals filed by the assessee for AYs 2012-13,

ITA 1701/KOL/2019[2015-16]Status: DisposedITAT Kolkata08 Oct 2024AY 2015-16

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13 M/S Eureka Forbes Limited, Joint Commissioner Of 7, Chakraberia Road (South), Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2013-14 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2014-15 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2015-16 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent)

For Appellant: Samir ChakrabortyFor Respondent: Rakesh Kumar Das, CIT-DR
Section 115JSection 143(3)Section 14A

income for the A.Y. 2012-13 on November 30, 2012 declaring total income of Rs. 28,94,75,270/-. The return was selected for scrutiny assessment and notices u/s 143(2) and 142(1) of the Act were served upon the assessee. In respect of the international transactions entered during

M/S. Eureka Forbes Ltd., Kolkata vs. JCIT, Circle - 10(1), Kolkata

In the result, all the four appeals filed by the assessee for AYs 2012-13,

ITA 1012/KOL/2019[2014-15]Status: DisposedITAT Kolkata08 Oct 2024AY 2014-15

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13 M/S Eureka Forbes Limited, Joint Commissioner Of 7, Chakraberia Road (South), Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2013-14 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2014-15 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2015-16 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent)

For Appellant: Samir ChakrabortyFor Respondent: Rakesh Kumar Das, CIT-DR
Section 115JSection 143(3)Section 14A

income for the A.Y. 2012-13 on November 30, 2012 declaring total income of Rs. 28,94,75,270/-. The return was selected for scrutiny assessment and notices u/s 143(2) and 142(1) of the Act were served upon the assessee. In respect of the international transactions entered during

M/S. Eureka Forbes Ltd., Kolkata vs. JCIT, Circle - 10(1), Kolkata

In the result, all the four appeals filed by the assessee for AYs 2012-13,

ITA 1011/KOL/2019[2013-14]Status: DisposedITAT Kolkata08 Oct 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13 M/S Eureka Forbes Limited, Joint Commissioner Of 7, Chakraberia Road (South), Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2013-14 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2014-15 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2015-16 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent)

For Appellant: Samir ChakrabortyFor Respondent: Rakesh Kumar Das, CIT-DR
Section 115JSection 143(3)Section 14A

income for the A.Y. 2012-13 on November 30, 2012 declaring total income of Rs. 28,94,75,270/-. The return was selected for scrutiny assessment and notices u/s 143(2) and 142(1) of the Act were served upon the assessee. In respect of the international transactions entered during

M/S. Eureka Forbes Ltd., Kolkata vs. JCIT, Circle - 10(1), Kolkata

In the result, all the four appeals filed by the assessee for AYs 2012-13,

ITA 1010/KOL/2019[2012-13]Status: DisposedITAT Kolkata08 Oct 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13 M/S Eureka Forbes Limited, Joint Commissioner Of 7, Chakraberia Road (South), Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2013-14 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2014-15 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent) Assessment Year: 2015-16 M/S Eureka Forbes Limited, The Deputy Commissioner 7, Chakraberia Road (South), Of Income Tax, Vs Bhovanipur, Kolkata - 700025 Circle 10(1), Kolkata, (Pan: Aaace5767F) 1St Floor, Aaykar Bhawan, Poorva, Kolkata - 700017 (Appellant) (Respondent)

For Appellant: Samir ChakrabortyFor Respondent: Rakesh Kumar Das, CIT-DR
Section 115JSection 143(3)Section 14A

income for the A.Y. 2012-13 on November 30, 2012 declaring total income of Rs. 28,94,75,270/-. The return was selected for scrutiny assessment and notices u/s 143(2) and 142(1) of the Act were served upon the assessee. In respect of the international transactions entered during

Subhendu Roy, Kolkata vs. Assistant Commissioner of Income Tax, National E Assessment Centre, Delhi

In the result, the appeal of the assessee stands allowed

ITA 1621/KOL/2024[2018-19]Status: DisposedITAT Kolkata07 Oct 2024AY 2018-19

Bench: Shri Sanjay Garg & Rajesh Kumari.T.A No.1621/Kol/2024 Assessment Year: 2018-19 Subhendu Roy…………....………………………… ........................……Appellant 93, Park Street, West Bengal-700016. [Pan: Acypr0191F] Vs. Acit, Delhi………………................…................…........……...…..…..Respondent Appearances By: Shri Raj Singha Maji, Staff, Appeared On Behalf Of The Appellant. Shri Abhijit Adhikari, Jcit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 07, 2024 Date Of Pronouncing The Order : October 07, 2024 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 07.06.2024 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. Shri Raj Singha Maji, Staff Of The Assessee, Has Put In Appearance On Behalf Of The Assessee & An Adjournment Letter Has Been Filed, However, A Perusal Of The Case File Reveals That There Is Only A Small Issue Involved In This Appeal, Which Can Be Decided After Hearing The Ld. Dr. 3. A Perusal Of The Assessment Order Reveals That In This Case, Limited Scrutiny Assessment Was Carried Out, Wherein, It Has Been Categorically Written By The Assessing Officer That No Additions Are Made & The

Section 250

this appeal, which can be decided after hearing the ld. DR. 3. A perusal of the assessment order reveals that in this case, limited scrutiny assessment was carried out, wherein, it has been categorically written by the Assessing Officer that no additions are made and the I.T.A No.1621/Kol/2024 Assessment Year

M/S Inland World Logistics Pvt. Ltd., Kolkata vs. PCIT(Cen.)- Kolkata-2, Kolkata

In the result, the appeal of the assessee is allowed

ITA 935/KOL/2024[2018-19]Status: DisposedITAT Kolkata03 Oct 2024AY 2018-19

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rakesh Mishrai.T.A. No. 935/Kol/2024 Assessment Year: 2018-2019 M/S. Inland World Logistics Pvt. Limited,…Appellant P-221/2, Strand Bank Road, Burrabazar, Kolkata-700001 [Pan:Aaaci5607C] -Vs.- Principal Commissioner Of Income Tax (Central), Kolkata-2,…………………………………………..…Respondent Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri Rakesh Jain, Fca, Appeared On Behalf Of The Assessee Shri Subhendu Datta, Cit (D.R.) & Smt. Monali Shaha Mukherjee, Jcit, Appeared On Behalf Of The Revenue Date Of Concluding The Hearing: July 25, 2024 Date Of Pronouncing The Order: October 03, 2024 O R D E R

Section 132Section 139Section 139(1)Section 143(1)Section 143(2)Section 153ASection 263

notice under section 143(2) could be issued to the assessee on or before 30th September, 2019, but it was not issued and no scrutiny assessment was undertaken. A search under section 132 of the Income Tax Act was carried out upon the assessee on 31.03.2022. The ld. Assessing Officer ... nothing was seized. The item of disallowance out of PF & ESI payments was a regular issue, which could have been gone into in the scrutiny assessment. Even at that time, the judgment of the Hon’ble Supreme Court has not been delivered in the case of Checkmate Services (P) Limited