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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

DCIT, Central Circle-2.4, Chennai vs. Shri Vivek Papisetty, Chennai

In the result, the appeal of the revenue stand dismissed

ITA 212/CHNY/2023[2017-18]Status: DisposedITAT Chennai02 Apr 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.212/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Vivek Papisetty बनाम Central Circle-2(4) No.17/184, Y Block, First Street, 6Th Main Road, Anna Nagar, Chennai. / Vs. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Brcpp-6180-N (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 2. Cross Objection No.9/Chny/2023 (In Ita No.212/Chny/2023) (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Vivek Papisetty Dcit No.17/184, Y Block, First Street, Vs. Central Circle-1(4) 6Th Main Road, Anna Nagar, Chennai. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Brcpp-6180-N (अपीलाथ"/Cross Objector) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Revenue By : Shri V. Nandakumar (Cit)- Ld. Dr !"थ"कीओरसे/ Assessee By : Shri Y. Sridhar (Fca)-Ld. Ar सुनवाईकीतारीख/Date Of Hearing : 10-01-2024 घोषणाकीतारीख /Date Of Pronouncement : 02-04-2024 आदेश / O R D E R Per Bench 1.1 Aforesaid Appeal By Revenue For Assessment Year (Ay) 2017-18 Arises Out Of An Order Passed By Learned Commissioner Of Income Tax

For Appellant: Shri Y. Sridhar (FCA)-Ld. ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 132Section 132(4)Section 143(3)

153A was already open and therefore, issuance of notice u/s 153C was a valid one. Once notice u/s 153C was issued, already existing scrutiny assessment proceedings get abated and there is no question of any two parallel proceedings as claimed by the assessee. Therefore, assessee’s objection was overruled

DCIT, Central Circle-2.4, Chennai vs. Shri Vivek Papisetty, Chennai

The appeal of the revenue stands dismissed

ITA 211/CHNY/2023[2016-17]Status: DisposedITAT Chennai02 Apr 2024AY 2016-17

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.211/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) Dcit Shri Vivek Papisetty बनाम Central Circle-2(4) No.17/184, Y Block, First Street, 6Th Main Road, Anna Nagar, Chennai. / Vs. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Brcpp-6180-N (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 2. Cross Objection No.8/Chny/2023 (In Ita No.211/Chny/2023) (िनधा"रण वष" / Assessment Year: 2016-17) बनाम/ Shri Vivek Papisetty Dcit No.17/184, Y Block, First Street, Vs. Central Circle-1(4) 6Th Main Road, Anna Nagar, Chennai. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Brcpp-6180-N (अपीलाथ"/Cross Objector) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Revenue By : Shri V. Nandakumar (Cit)- Ld. Dr !"थ"कीओरसे/ Assessee By : Shri Y. Sridhar (Fca)-Ld. Ar सुनवाईकीतारीख/Date Of Hearing : 10-01-2024 घोषणाकीतारीख /Date Of Pronouncement : 02-04-2024 आदेश / O R D E R Per Bench 1.1 Aforesaid Appeal By Revenue For Assessment Year (Ay) 2016-17 Arises Out Of An Order Passed By Learned Commissioner Of Income Tax

For Appellant: Shri Y. Sridhar (FCA)-Ld. ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 132Section 143(3)

153A was already open and therefore, issuance of notice u/s 153C was a valid one. Once notice u/s 153C was issued, already existing scrutiny assessment proceedings get abated and there is no question of any two parallel proceedings as claimed by the assessee. Therefore, assessee’s objection was overruled

Anil Kumar HUF, New Delhi vs. ITO Ward 49(1), New Delhi

The appeal is allowed for statistical purposes

ITA 2098/DEL/2023[2016-17]Status: DisposedITAT Delhi29 Mar 2024AY 2016-17

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharmaassessment Year: 2016-17 Anil Kumar, Huf, Vs Ito, Ward 49(1), B-17/4, Ramesh Nagar, New Delhi. New Delhi – 110 015. Pan: Aafha2224P (Appellant) (Respondent) Assessee By : Shri S.L. Deepak, Ca Revenue By : Shri Kanav Bali, Sr. Dr Date Of Hearing : 20.02.2024 Date Of Pronouncement : 29.02.2024 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Assessee Against The Order Dated 06.06.2023 Of The Commissioner Of Income Tax (Appeals), Nfac, Delhi (Hereinafter Referred As Ld. First Appellate Authority Or In Short Ld. ‘Faa’) In Appeal No.Cit(A), Delhi-17/10218/2018-19 Arising Out Of The Appeal Before It Against The Order Dated 20.12.2018, Passed U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred As ‘The Act’) By The Ito, Ward-49(1), Delhi (Hereinafter Referred To As The Ld. Ao). 2. Heard & Perused The Record. The Assessee, As Huf, Has Filed Return Of Income Declaring An Income Of Rs.2,45,000/- & The Case Of The Assessee Was Selected For Scrutiny Under Cass For The Reason Of Cash Deposit During Demonetization Period & The Ld. Ao, On The Basis Of Notices Issued & Replies Filed, Had Made An Addition To The Extent Of 20% Out Of Total Credit Entries Of Rs.2,42,63,815/- In Bank Account No.912020020658201 In The Name Of M/S Ravi Devi Enterprises. The Ld.Cit(A) Has Also Sustained The Addition.

For Appellant: Shri S.L. Deepak, CAFor Respondent: Shri Kanav Bali, Sr. DR
Section 143(3)

Ravi Devi Enterprises and 2 the proprietor of the same is Anil Kumar, individual. Whatever error has crept into the bank account leading to scrutiny assessment and the addition are based on a wrong fact about the real identity of the bank accountholder. 5. In the light of the aforesaid

Ascendas It Park (Chennai) Limited, Chennai vs. PCIT 1, Chennai

In the result, the appeal filed by the assessee is allowed

ITA 682/CHNY/2023[2018-19]Status: DisposedITAT Chennai27 Mar 2024AY 2018-19

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 682/Chny/2023 िनधा"रण वष"/Assessment Year: 2018-19 Ascendas It Park (Chennai) The Principal Commissioner Ltd., Vs. Of Income Tax, Pinnacle Building, 1St Floor, Range-1, International Tech Park, Chennai – 34. Csir Road, Taramani, Chennai – 600 113. Pan: Aaeca 7979D (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Ms.Tanmayee Rajkumar, Advocate ""यथ" क" ओर से/Respondent By : Shri Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 20.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 27.03.2024 आदेश /O R D E R Per Mahavir Singh: This Appeal By The Assessee Is Arising Out Of The Revision Order Passed By The Principal Itba/Rev/F/Rev5/2022-23/1051515676(1) Dated 28.03.2023. The Assessment Was Framed By The Income Tax Officer, National E-Assessment Centre, Delhi For The Assessment Year 2018-19 U/S.143(3) R.W.S. 143(3A) & 143(3B) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Order Dated 31.01.2021. 2. The Only Issue In This Appeal Of Assessee Is As Regards To The Order Of Pcit Passed U/S.263 Of The Act Revising The Assessment Framed By The Ao U/S.143(3) Of The Act Dated 31.01.2021. The Pcit Has Revised The Assessment In Regard To Following Two Issues:- (I) Loss On Sale Of Fixed Assets At Rs.11,02,001/- (Ii) Provision For Doubtful Debts At Rs.31,46,538/-

For Appellant: Ms.Tanmayee Rajkumar, AdvocateFor Respondent: Shri Nilay Baran Som, CIT
Section 143(3)Section 263Section 80I

through lease of developed area to enterprises engaged in Information Technology & Information Technology enabled services sector. The assessee’s case was selected for complete scrutiny assessment under e-assessment scheme 2019 on the following issues:- i. Claim of any other amount allowable as deduction in Schedule BP ii. Deduction claimed