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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 Ramani Timber Corporation, Trichy vs. ACIT-Circle-3(1), Trichy

The appeal stand partly allowed in terms of our above order

ITA 1476/CHNY/2023[2012-13]Status: DisposedITAT Chennai13 Mar 2024AY 2012-13

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1476/Chny/2023 (िनधा*रण वष* / Assessment Year: 2012-13) M/S. Ramani Timber Corporation Acit बनाम 3/132A. Tanjore Road, Opp.Udc Circle-3(1) / Vs. Kattur, Trichy-620 019. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaefr-9407-J (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Mrs. T.V. Muthu Abirami (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri D. Hema Bhupal (Jcit)- Ld. Sr. Dr सुनवाईकीतारीख/Date Of Final Hearing : 13-03-2024 घोषणाकीतारीख /Date Of Pronouncement : 13-03-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2012-13 Arises Out Of An Order Passed By Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] On 17-10-2023 In The Matter Of An Assessment Framed By Ld. Assessing Officer [Ao] U/S. 143(3) R.W.S 147 Of The Act On 31-12-2018. This Is Second Round Of Litigation. Earlier, The Tribunal Vide Its Order In Ita No.125/Chny/2020 Dated 09-11-2021 Had Set Aside The Appeal To Ld. Cit(A) For Fresh Consideration. Pursuant To The Same, Impugned Order

For Appellant: Mrs. T.V. Muthu Abirami (Advocate)-Ld. ARFor Respondent: Shri D. Hema Bhupal (JCIT)- Ld. Sr. DR
Section 143(3)Section 147Section 234ASection 68

return of income for AY 2012-13 was filed returning an income of Rs.9,34,720/-. Return was processed u/s 143(1) on 28.11.2012. Scrutiny assessment u/s 143(3) of the Act was completed on 13.03.2015 by making disallowance on travelling expenses and car maintenance on the basis of usage

M/S. Indovision Securities Limited., Kolkata vs. ITO, Ward-6(2), Kolkata.

In the result, the appeal of the assessee stands allowed

ITA 1353/KOL/2023[2012-13]Status: DisposedITAT Kolkata11 Mar 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1353/Kol/2023 Assessment Year : 2012-13 M/S Indovision Securities Ltd….…………............…...……………....Appellant Block B, Suit No.1A, 1St Floor Mangalam, 24 & 26 Hemanta Basu Sarani, Isi P.O S.O, Kolkata-1. [Pan: Aaaci5310G] Vs. Ito, Ward-6(2), Kolkata….….............................................…..…..... Respondent Appearances By: Shri Sunil Surana, Ar, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 27, 2024 Date Of Pronouncing The Order : March 11, 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 30.03.2023 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 Appeal Is Time-Barred By 196 Days. A Separate Application For Condonation Of Delay Has Been Filed. Considering The Averments Made In The Application, The Delay In Filing The Present Appeal Is Hereby Condoned. 3. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. For That The Ld Cit(A) Erred In Deciding The Appeal Ex-Parte When No Proper & Reasonable Opportunity Of Being Heard Was Granted.

Section 143(1)Section 143(3)Section 147Section 148Section 250

case are that the assessee has filed its return of income for assessment year 2012-13 on 30.09.2012. The case was selected for scrutiny assessment and thereafter the scrutiny assessment order u/s 143(3) of the Act was passed on 31.03.2015 at an assessed income of Rs.3

Chandrani Compliments & Export (P) Ltd., Kolkata vs. D.C.I.T., Circle-10(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 2365/KOL/2019[2012-13]Status: DisposedITAT Kolkata06 Mar 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.2365/Kol/2019 Assessment Year : 2012-13 Chandrani Compliments & Export (P) Ltd..........…...……………....Appellant 1, Tarpan Ghat Road, Kolkata – 700053. [Pan: Aabcc3652J] Vs. Dcit, Circle-10(1), Kolkata……..........................................…..…..... Respondent Appearances By: Shri C. Roy, Ar, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 05, 2024 Date Of Pronouncing The Order : March 06, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Revision Order Dated 14.03.2019 Of The Principal Commissioner Of Income Tax-4, Kolkata [Hereinafter Referred To As ‘Pcit’] Passed U/S 263 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Contested The Very Validity Of The Revision Order Passed By The Ld. Pcit. 3. At The Outset, The Ld. Counsel For The Assessee Has Stated The Chronological Events By Stating That The Return For The Assessment Year Under Consideration I.E. A.Y 2012-13 Was Filed By The Assessee On 01.10.2012 Showing An Income Of Rs.67,5,030/-. Thereafter, The Scrutiny Assessment Was Completed On 19.12.2014 By The Ld. Dcit, Circle-10(1), Kolkata U/S 143(3) Of The Act, Wherein, The Income Of The

Section 143(3)Section 201Section 263Section 36(1)(va)Section 68

assessment year under consideration i.e. A.Y 2012-13 was filed by the assessee on 01.10.2012 showing an income of Rs.67,5,030/-. Thereafter, the scrutiny assessment was completed on 19.12.2014 by the ld. DCIT, Circle-10(1), Kolkata u/s 143(3) of the Act, wherein, the income of the I.T.A

Mr. Palanisamy Senthilkumar, Chennai vs. ITO, Ward 2(1), Tirupur

In the result, the appeal filed by the assessee in ITA

ITA 1601/CHNY/2023[2018-19]Status: DisposedITAT Chennai06 Mar 2024AY 2018-19

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No. 1601/Chny/2023 िनधा"रण वष" /Assessment Year:2018-2019 Shri. Palanisamy Senthilkumar, The Income Tax Officer, 73/1, Selvakumar Rice Mill, Vs. Ward 2(1) Mangalam Road, Tirupur 641 601. Andipalayam, Tirupur 641 687. [Pan: Bwups 6975B] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Ms. J. Vamini, Advocate ""यथ" क" ओर से/Respondent By : Mr. D. Hema Bhupal, Irs, Jcit. सुनवाई क" तारीख/Date Of Hearing : 04.03.2024. घोषणा क" तारीख/Date Of Pronouncement : 06.03.2024 आदेश /O R D E R Per Mahavir Singh, Vp: This Appeal By The Assessee Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi In Order No.Itba/Nfac/S/250/2023- 24/1054384098 (1) Dated 15.07.2023. The Assessment Was Framed By The Additional/Joint/Deputy/Assistant Commissioner Of Income 2 Tax/ Income-Tax Officer, National E-Assessment Centre, Delhi U/S.143(3) R.W.S. 143(3A) & 143(3B) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) For The Assessment Year 2018-19 Vide Order Dated 03.04.2021. 2. The Only Issue In This Appeal Of Assessee Is As Regard To Order Of Ld. Commissioner Of Income (Appeals) (In Short ‘’Ld. Cit(A)’’) Sustaining/ Restricting The Addition At Rs.73,99,559/- As Against Addition Made By The Ld. Assessing Officer At Rs.2,42,58,153/- In Regard To Disallowance Of Expenditure Being Payment Of Commission & Brokerage Made To Contractors U/S.69C Of The Act Being Unexplained Expenditure.

For Appellant: Ms. J. Vamini, AdvocateFor Respondent: Mr. D. Hema Bhupal, IRS, JCIT
Section 143(3)Section 194HSection 44BSection 68Section 69C

individual carrying on the business as a trader in wearing apparels. Assessee filed his return of income and assessee’s case was selected for scrutiny assessment. The assessment was completed determining total income of Rs.3,88,49,580/- as against returned income of Rs.13,37,010/-. The only addition before