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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

Sundip Kumar Gupta., Kolkata vs. DCIT, Cir-47, Kolkata.

Appeals of the assessee stand allowed

ITA 1171/KOL/2023[2012-13]Status: DisposedITAT Kolkata02 Jul 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. Nos.1170 To1173/Kol/2023 Assessment Years: 2010-11, 2012-13, 2014-15 & 2015-16 Sundip Kumar Gupta..…………………....................…...……………....Appellant Fort Oasis Complex, Flat No.040903, Block-436B, Panditya Road, Kolkata – 700029. [Pan: Aebpg7187B] Vs. Dcit, Circle-47, Kolkata…….……………............................…..…..... Respondent Appearances By: Shri Abhishek Bansal, Ar, Appeared On Behalf Of The Assessee. Shri B. K. Singh, Jcit-Sr. Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : April 23, 2024 Date Of Pronouncing The Order : July 02, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Are Bunch Of Four Appeals Preferred By The Assessee Against The Separate Orders Dated 06.09.2023, 06.09.2023, 15.09.2023 & 06.09.2023, Respectively, 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’). Since The Facts & Issues Involved In All The Appeals Are Identical, Hence, These Appeals Have Been Heard Together & Are Being Disposed Of By This Common Order. At The Request Of Ld. Representatives Of The Parties, Ita No.1170/Kol/2023 Is Taken As The Lead Case For The Purpose Of Narration Of Facts.

Section 147Section 250Section 68

assessee. The Ld. Counsel has submitted that the ‘Return Of Income’ of the said Anmol Commerce Pvt. Ltd. having been accepted after scrutiny assessment u/s147/143(3) of the Act for the subsequent year despite the fact that the reopening has been made on the identical allegations, proves that the allegation

Sundip Kumar Gupta., Kolkata vs. DCIT, Cir-47, Kolkata.

Appeals of the assessee stand allowed

ITA 1170/KOL/2023[2010-11]Status: DisposedITAT Kolkata02 Jul 2024AY 2010-11

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. Nos.1170 To1173/Kol/2023 Assessment Years: 2010-11, 2012-13, 2014-15 & 2015-16 Sundip Kumar Gupta..…………………....................…...……………....Appellant Fort Oasis Complex, Flat No.040903, Block-436B, Panditya Road, Kolkata – 700029. [Pan: Aebpg7187B] Vs. Dcit, Circle-47, Kolkata…….……………............................…..…..... Respondent Appearances By: Shri Abhishek Bansal, Ar, Appeared On Behalf Of The Assessee. Shri B. K. Singh, Jcit-Sr. Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : April 23, 2024 Date Of Pronouncing The Order : July 02, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Are Bunch Of Four Appeals Preferred By The Assessee Against The Separate Orders Dated 06.09.2023, 06.09.2023, 15.09.2023 & 06.09.2023, Respectively, 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’). Since The Facts & Issues Involved In All The Appeals Are Identical, Hence, These Appeals Have Been Heard Together & Are Being Disposed Of By This Common Order. At The Request Of Ld. Representatives Of The Parties, Ita No.1170/Kol/2023 Is Taken As The Lead Case For The Purpose Of Narration Of Facts.

Section 147Section 250Section 68

assessee. The Ld. Counsel has submitted that the ‘Return Of Income’ of the said Anmol Commerce Pvt. Ltd. having been accepted after scrutiny assessment u/s147/143(3) of the Act for the subsequent year despite the fact that the reopening has been made on the identical allegations, proves that the allegation

Shri Hari Corporation, Ahmedabad vs. The DCIT, Circle-3(1)(2), Ahmedabad

ITA 1720/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad28 Jun 2024AY 2014-15

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar, Accountnat Member 1. Ita No.1719/Ahd/2019 & 2. Ita No.1720/Ahd/2019 (Assessment Years : 2013-14 & 2014-15 Respectively) Shri Hari Corporation The Dy.Cit A/13, Vrundavan Park Society Vs Circle-3(1)2) Viratnagar Road, Odhav Ahmedabad Ahmedabad – 382 415 Pan: Absfs 9846 B अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Vijay H. Patel, Ar Revenue By : Shri Nitin Vishnu Kulkarni, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 13/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 28/06/2024 आदेश/O R D E R Per Shri Makarand V. Mahadeokar, Am: Both The Captioned Appeals By The Assessee Are Directed Against The Separate Orders Of The Commissioner Of Income Tax(Appeals)-9, Ahmedabad [Cit(A) In Short] Dated 03/10/201 & 04/10/2019 For The Assessment Years (Ays) 2013-14 & 2014-15 Respectively. Since The Common Issues Are Involved In Both The Appeals, These Were Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience.

For Appellant: Shri Vijay H. Patel, ARFor Respondent: Shri Nitin Vishnu Kulkarni, Sr.DR
Section 142Section 142ASection 143(1)Section 144Section 69Section 69ASection 69B

return was processed u/s 143(1) of the Income Tax Act, 1961 (“the Act” in short). Later on, the case was selected for scrutiny assessment. During the course of assessment proceedings, it was observed by the Assessing Officer (AO) that the work-in-progress (WIP) is suppressed by the assessee

Shri Hari Corporation, Ahmedabad vs. The DCIT, Circle-3(1)(2), Ahmedabad

ITA 1719/AHD/2019[2013-14]Status: DisposedITAT Ahmedabad28 Jun 2024AY 2013-14

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar, Accountnat Member 1. Ita No.1719/Ahd/2019 & 2. Ita No.1720/Ahd/2019 (Assessment Years : 2013-14 & 2014-15 Respectively) Shri Hari Corporation The Dy.Cit A/13, Vrundavan Park Society Vs Circle-3(1)2) Viratnagar Road, Odhav Ahmedabad Ahmedabad – 382 415 Pan: Absfs 9846 B अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Vijay H. Patel, Ar Revenue By : Shri Nitin Vishnu Kulkarni, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 13/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 28/06/2024 आदेश/O R D E R Per Shri Makarand V. Mahadeokar, Am: Both The Captioned Appeals By The Assessee Are Directed Against The Separate Orders Of The Commissioner Of Income Tax(Appeals)-9, Ahmedabad [Cit(A) In Short] Dated 03/10/201 & 04/10/2019 For The Assessment Years (Ays) 2013-14 & 2014-15 Respectively. Since The Common Issues Are Involved In Both The Appeals, These Were Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience.

For Appellant: Shri Vijay H. Patel, ARFor Respondent: Shri Nitin Vishnu Kulkarni, Sr.DR
Section 142Section 142ASection 143(1)Section 144Section 69Section 69ASection 69B

return was processed u/s 143(1) of the Income Tax Act, 1961 (“the Act” in short). Later on, the case was selected for scrutiny assessment. During the course of assessment proceedings, it was observed by the Assessing Officer (AO) that the work-in-progress (WIP) is suppressed by the assessee

Vellingiri, Tiruppur vs. ITO, Ward-2(1), Tiruppur

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

ITA 1458/CHNY/2023[2015-16]Status: DisposedITAT Chennai28 Jun 2024AY 2015-16

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita Nos.: 1456 & 1458/Chny/2023 िनधा"रण वष" / Assessment Years: 2013-14 & 2015-16 Income Tax Officer, Vellingiri, V. Ward -2(1), 55/79, Kuppanna Chettiyar Tirupur. Street, Palladam Road, Tirupur – 641 604. [Pan: Aekpv-1257-N] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. S. Sridhar, Advocate (Erode) ""यथ" क" ओर से/Respondent By : Shri. D. Hema Bhupal, Jcit सुनवाई क" तारीख/Date Of Hearing : 07.05.2024 घोषणा क" तारीख/Date Of Pronouncement : 28.06.2024 आदेश /O R D E R Per S. R. Raghunatha:

For Appellant: Shri. S. Sridhar, Advocate (Erode)For Respondent: Shri. D. Hema Bhupal, JCIT
Section 143(3)Section 69A

commission. This fact has been verified and accepted by the Assessing Officer for the earlier two assessment years (AYs 2011-12 & 2012-13) after scrutiny assessments (supra). We note that in those two assessment years also the Assessing Officer had reopened the assessment taking note of the cash deposits ... total cash deposits of Rs.32,65,520/- i.e., Rs.1,59,390/-, which also has been accepted by the Assessing Officer after scrutiny assessment u/s. 143(3) of the Act. 7. In the light of the aforesaid facts and since, there is no change in the business activity of the assessee

Vellingiri, Tirupur vs. ITO, Ward-2(1), Tirupur

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

ITA 1456/CHNY/2023[2013-14]Status: DisposedITAT Chennai28 Jun 2024AY 2013-14

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita Nos.: 1456 & 1458/Chny/2023 िनधा"रण वष" / Assessment Years: 2013-14 & 2015-16 Income Tax Officer, Vellingiri, V. Ward -2(1), 55/79, Kuppanna Chettiyar Tirupur. Street, Palladam Road, Tirupur – 641 604. [Pan: Aekpv-1257-N] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. S. Sridhar, Advocate (Erode) ""यथ" क" ओर से/Respondent By : Shri. D. Hema Bhupal, Jcit सुनवाई क" तारीख/Date Of Hearing : 07.05.2024 घोषणा क" तारीख/Date Of Pronouncement : 28.06.2024 आदेश /O R D E R Per S. R. Raghunatha:

For Appellant: Shri. S. Sridhar, Advocate (Erode)For Respondent: Shri. D. Hema Bhupal, JCIT
Section 143(3)Section 69A

commission. This fact has been verified and accepted by the Assessing Officer for the earlier two assessment years (AYs 2011-12 & 2012-13) after scrutiny assessments (supra). We note that in those two assessment years also the Assessing Officer had reopened the assessment taking note of the cash deposits ... total cash deposits of Rs.32,65,520/- i.e., Rs.1,59,390/-, which also has been accepted by the Assessing Officer after scrutiny assessment u/s. 143(3) of the Act. 7. In the light of the aforesaid facts and since, there is no change in the business activity of the assessee