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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. Asaikani Nadar Kamaraj, Rajapalayam

In the result, the appeal filed by the Revenue as well as Cross

ITA 1197/CHNY/2023[2017-18]Status: DisposedITAT Chennai21 Mar 2024AY 2017-18

Bench: Shri V. Durga Rao & Shri Manjunatha, G.आयकर अपील सं./I.T.A. No.1197/Chny/2023 िनधा"रण वष"/Assessment Year: 2017-18 & C.O. No. 54/Chny/2023 [In I.T.A. No. 1197/Chny/2023] The Assistant Commissioner Of Vs. Asaikani Nadar Kamaraj, Income Tax, 7/84, Pound Street, Chokkanathaputhur, Central Circle 2, Rajapalayam, Virudhunagar District, Madurai. Tamil Nadu 626 121. [Pan:Aaxpk1318E] (अपीलाथ" /Appellant) (""थ"/Respondent/Cross Objector) Department By : Shri R. Clement Ramesh Kumar, Cit Assessee By : Shri R. Venkataraman, C.A. सुनवाई की तारीख/ Date Of Hearing : 07.03.2024 घोषणा की तारीख /Date Of Pronouncement : 21.03.2024 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue & The Cross Objection By The Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 19, Chennai, Dated 31.08.2023 Relevant To The Assessment Year 2017-18. 2. Brief Facts Of The Case Are That The Assessee Filed His Return Of Income For The Assessment Year 2017-18 On 01.11.2017 Admitting A Total

For Appellant: Shri R. Venkataraman, C.AFor Respondent: Shri R. Clement Ramesh Kumar, CIT
Section 133ASection 142(1)Section 143(1)Section 143(2)Section 144Section 145Section 68

failed to appreciate that notice u/s.143(2) was issued on 17/08/2018 and the assessment was completed on 31/12/2019. During the scrutiny assessment proceedings, the assessee had not claimed that the amount of Rs.4,51,82,574/- was due from M/s. A.K.R. Agencies. 2.3 The Id.CIT(A) observed that the assessee ... that the assessee has duly offered the same to tax in the A.Y.2018-19 which was duly accepted by the Assessing Officer while completing the scrutiny assessment for the A.Y. 2018-19. Since the income admitted by the assessee was accepted by the Assessing Officer

M/S. Sivasakthi Tyres, Tuticorin vs. ITO, Ward-4, Tuticorin

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

ITA 586/CHNY/2023[2014-15]Status: DisposedITAT Chennai20 Mar 2024AY 2014-15

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 586/Chny/2023 िनधा"रण वष"/Assessment Year: 2014-15 M/S. Sivasakthi Tyres, The Income Tax Officer, 184/9B, Vvd Road, Vs. Ward -4, Tuticorin – 628 008. Tuticorin. Pan: Abkfs 7778L (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri V.J. Arul Raj & Shri P. Sivagaminathan, Advocates ""यथ" क" ओर से/Respondent By : Shri Ar.V. Sreenivasan, Addl.Cit सुनवाई क" तारीख/Date Of Hearing : 20.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 20.03.2024 आदेश /O R D E R Per Mahavir Singh: This Appeal By The Assessee Is Arising Out Of The Order Passed By The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi In Order No.Itba/Nfac/S/250/2022- 23/1050727795(1) Dated 14.03.2023. The Assessment Was Framed By The Income Tax Officer, Ward 4, Tuticorin For The Assessment Year 2014-15 U/S.143(3) R.W.S. 263 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Order Dated 08.11.2019. 2. The Only Issue In This Appeal Of Assessee Is As Regards To The Order Of Cit(A) Confirming The Action Of The Ao In Making Disallowance Of Payments Made By Way Of Cash For Purchase In Excess Of Rs.20,000/- & Thereby Violating The Provisions Of Section 40A(3) Of The Act. The Assessee Has Raised 17 Grounds, Which Are Argumentation, Factual & Citation Of Various Case Laws & Hence, Need Not Be Reproduced.

For Appellant: Shri V.J. Arul Raj &For Respondent: Shri AR.V. Sreenivasan, Addl.CIT
Section 143(2)Section 143(3)Section 263Section 40A(3)

tubes. The assessee filed its return of income for the relevant assessment year 2014-15 on 30.05.2015 and assessee’s case was selected for scrutiny assessment u/s.143(2)of the Act. The assessee’s scrutiny assessment was completed u/s.143(3) of the Act on 30.11.2016. Subsequently, the PCIT, Madurai passed

Shri Viswanathan Udayakumar, Coimbatore vs. The Principal CIT-I, Coimbatore

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

ITA 346/CHNY/2020[2015-16]Status: DisposedITAT Chennai20 Mar 2024AY 2015-16

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 346/Chny/2020 िनधा"रण वष"/Assessment Year: 2015-16 Shri Viswanathan Udayakumar, The Principal Commissioner 81, Periyasamy Road (W), Vs. Of Income Tax-1, R.S. Puram, Coimbatore. Coimbatore -641 002. Pan: Aampu 5272A (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri S. Sridhar, Advocate & Shri N. Arjunraj, Ca ""यथ" क" ओर से/Respondent By : Shri Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 18.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 20.03.2024 आदेश /O R D E R Per Mahavir Singh:

For Appellant: Shri S. Sridhar, Advocate &For Respondent: Shri Nilay Baran Som, CIT
Section 142(1)Section 143(3)Section 263

balance sheet enclosed with the return of income does not contain the correct picture but the capital account copy filed during the course of scrutiny assessment proceedings wherein the assessee’s mother had invested 14000 grams of gold jewels in ARK jewelers was the capital investment ... account of capital distributing her assets to her legal heirs after she expired on 27.01.201. The ld.counsel explained that the assessee during scrutiny assessment proceedings submitted the correct balance sheet as on 31.12.2017 and the capital balance declared in the balance sheet filed along with the return of income, there

Junior Chamber International India, Andheri, Mumbai vs. Income Tax Officer (Exemptions) - 1(4), Mumbai, Mtnl Building, Pedder Road

In the result, all the appeals filed by the assessee are allowed for statistical purposes

ITA 2454/MUM/2023[2014-2015]Status: DisposedITAT Mumbai20 Mar 2024AY 2014-2015

Bench: Shri Vikas Awasthy & Shri Amarjit Singhita Nos. 2448,2450,2451, 2452 & 2454/Mum/2023 (A.Ys. 2012-13 To 2016-17) Junior Chamber Vs. Income Tax Officer International India (Exemption)-1(4) 506, Windfall Sahar Plaza, 6Th Floor, Mtnl Tel. Ex. J.B. Nagar Near Chakala Building, Cumballa Hills, Metro Station, Andheri Pedder Road, Maharashtra – 400059 Maharashtra - 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaati1215P Appellant .. Respondent Appellant By : Ms. Chaitee Londhe & Ms. Pallavi Limye Respondent By : Ankush Kapoor Date Of Hearing 18.03.2024 Date Of Pronouncement 20.03.2024 आदेश / O R D E R Per Bench: All These 5 Appeals For Ays 2012-13 To 2016-17 Are Directed The Different Orders Of Ld. Cit(A) Passed U/S 250 Of The Act. Since, All These Appeals Are Based On Similar Issue & Identical Facts, Therefore, For The Sake Of Convenience All These Appeals Are Adjudicated Together By Taking

For Appellant: Ms. Chaitee Londhe &For Respondent: Ankush Kapoor
Section 11Section 12ASection 143(2)Section 2(15)Section 250

along with the income and expenditure account, balance sheet and audit report in the form no. 10B. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.09.2013. The assessee is a trust registered with charity Commissioner under Bombay Public Trust

Junior Chamber International India, Andheri, Mumbai vs. Income Tax Officer (Exemptions)- 1(4), Mumbai, Mtnl Building, Pedder Road

In the result, all the appeals filed by the assessee are allowed for statistical purposes

ITA 2452/MUM/2023[2015-2016]Status: DisposedITAT Mumbai20 Mar 2024AY 2015-2016

Bench: Shri Vikas Awasthy & Shri Amarjit Singhita Nos. 2448,2450,2451, 2452 & 2454/Mum/2023 (A.Ys. 2012-13 To 2016-17) Junior Chamber Vs. Income Tax Officer International India (Exemption)-1(4) 506, Windfall Sahar Plaza, 6Th Floor, Mtnl Tel. Ex. J.B. Nagar Near Chakala Building, Cumballa Hills, Metro Station, Andheri Pedder Road, Maharashtra – 400059 Maharashtra - 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaati1215P Appellant .. Respondent Appellant By : Ms. Chaitee Londhe & Ms. Pallavi Limye Respondent By : Ankush Kapoor Date Of Hearing 18.03.2024 Date Of Pronouncement 20.03.2024 आदेश / O R D E R Per Bench: All These 5 Appeals For Ays 2012-13 To 2016-17 Are Directed The Different Orders Of Ld. Cit(A) Passed U/S 250 Of The Act. Since, All These Appeals Are Based On Similar Issue & Identical Facts, Therefore, For The Sake Of Convenience All These Appeals Are Adjudicated Together By Taking

For Appellant: Ms. Chaitee Londhe &For Respondent: Ankush Kapoor
Section 11Section 12ASection 143(2)Section 2(15)Section 250

along with the income and expenditure account, balance sheet and audit report in the form no. 10B. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.09.2013. The assessee is a trust registered with charity Commissioner under Bombay Public Trust

Junior Chamber International India, Mumbai vs. Income Tax Officer(Exemptions)- 1(4) Mumbai, Mtnl Building, Pedder Road

In the result, all the appeals filed by the assessee are allowed for statistical purposes

ITA 2451/MUM/2023[2016-2017]Status: DisposedITAT Mumbai20 Mar 2024AY 2016-2017

Bench: Shri Vikas Awasthy & Shri Amarjit Singhita Nos. 2448,2450,2451, 2452 & 2454/Mum/2023 (A.Ys. 2012-13 To 2016-17) Junior Chamber Vs. Income Tax Officer International India (Exemption)-1(4) 506, Windfall Sahar Plaza, 6Th Floor, Mtnl Tel. Ex. J.B. Nagar Near Chakala Building, Cumballa Hills, Metro Station, Andheri Pedder Road, Maharashtra – 400059 Maharashtra - 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaati1215P Appellant .. Respondent Appellant By : Ms. Chaitee Londhe & Ms. Pallavi Limye Respondent By : Ankush Kapoor Date Of Hearing 18.03.2024 Date Of Pronouncement 20.03.2024 आदेश / O R D E R Per Bench: All These 5 Appeals For Ays 2012-13 To 2016-17 Are Directed The Different Orders Of Ld. Cit(A) Passed U/S 250 Of The Act. Since, All These Appeals Are Based On Similar Issue & Identical Facts, Therefore, For The Sake Of Convenience All These Appeals Are Adjudicated Together By Taking

For Appellant: Ms. Chaitee Londhe &For Respondent: Ankush Kapoor
Section 11Section 12ASection 143(2)Section 2(15)Section 250

along with the income and expenditure account, balance sheet and audit report in the form no. 10B. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.09.2013. The assessee is a trust registered with charity Commissioner under Bombay Public Trust

Junior Chamber International India, Andheri, Mumbai vs. Income Tax Officer(Exemptions)- 1(4), Mumbai, Mtnl Building, Pedder Road

In the result, all the appeals filed by the assessee are allowed for statistical purposes

ITA 2450/MUM/2023[2012-2013]Status: DisposedITAT Mumbai20 Mar 2024AY 2012-2013

Bench: Shri Vikas Awasthy & Shri Amarjit Singhita Nos. 2448,2450,2451, 2452 & 2454/Mum/2023 (A.Ys. 2012-13 To 2016-17) Junior Chamber Vs. Income Tax Officer International India (Exemption)-1(4) 506, Windfall Sahar Plaza, 6Th Floor, Mtnl Tel. Ex. J.B. Nagar Near Chakala Building, Cumballa Hills, Metro Station, Andheri Pedder Road, Maharashtra – 400059 Maharashtra - 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaati1215P Appellant .. Respondent Appellant By : Ms. Chaitee Londhe & Ms. Pallavi Limye Respondent By : Ankush Kapoor Date Of Hearing 18.03.2024 Date Of Pronouncement 20.03.2024 आदेश / O R D E R Per Bench: All These 5 Appeals For Ays 2012-13 To 2016-17 Are Directed The Different Orders Of Ld. Cit(A) Passed U/S 250 Of The Act. Since, All These Appeals Are Based On Similar Issue & Identical Facts, Therefore, For The Sake Of Convenience All These Appeals Are Adjudicated Together By Taking

For Appellant: Ms. Chaitee Londhe &For Respondent: Ankush Kapoor
Section 11Section 12ASection 143(2)Section 2(15)Section 250

along with the income and expenditure account, balance sheet and audit report in the form no. 10B. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.09.2013. The assessee is a trust registered with charity Commissioner under Bombay Public Trust

Junior Chamber International India, Andheri, Mumbai vs. Income Tax Officer(Exemptions)- 1(4), Mumbai, Mtnl Building, Pedder Road

In the result, all the appeals filed by the assessee are allowed for statistical purposes

ITA 2448/MUM/2023[2013-14]Status: DisposedITAT Mumbai20 Mar 2024AY 2013-14

Bench: Shri Vikas Awasthy & Shri Amarjit Singhita Nos. 2448,2450,2451, 2452 & 2454/Mum/2023 (A.Ys. 2012-13 To 2016-17) Junior Chamber Vs. Income Tax Officer International India (Exemption)-1(4) 506, Windfall Sahar Plaza, 6Th Floor, Mtnl Tel. Ex. J.B. Nagar Near Chakala Building, Cumballa Hills, Metro Station, Andheri Pedder Road, Maharashtra – 400059 Maharashtra - 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaati1215P Appellant .. Respondent Appellant By : Ms. Chaitee Londhe & Ms. Pallavi Limye Respondent By : Ankush Kapoor Date Of Hearing 18.03.2024 Date Of Pronouncement 20.03.2024 आदेश / O R D E R Per Bench: All These 5 Appeals For Ays 2012-13 To 2016-17 Are Directed The Different Orders Of Ld. Cit(A) Passed U/S 250 Of The Act. Since, All These Appeals Are Based On Similar Issue & Identical Facts, Therefore, For The Sake Of Convenience All These Appeals Are Adjudicated Together By Taking

For Appellant: Ms. Chaitee Londhe &For Respondent: Ankush Kapoor
Section 11Section 12ASection 143(2)Section 2(15)Section 250

along with the income and expenditure account, balance sheet and audit report in the form no. 10B. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.09.2013. The assessee is a trust registered with charity Commissioner under Bombay Public Trust