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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

Crosseas Capital Services Pvt Ltd, Mumbai vs. ACIT (Central-2(4), Mumba

In the result, all the four appeals filed by the assessee are hereby partly allowed

ITA 3418/MUM/2023[2014-2015]Status: DisposedITAT Mumbai26 Feb 2024AY 2014-2015

Bench: Shri Amit Shukla & Shri Amarjit Singhassessment Year: 2015-16 Assessment Year: 2014-15 Assessment Year: 2020-21 Assessment Year: 2018-19 M/S. Crosseas Capital Assistant Commissioenr Of Services P. Ltd., Income Tax (Central Suite 37, 5Th Floor, Circle)-2(4), Martin Burn House, Vs. 802, 8Th Floor, 1 Rn Mukherjee Road, Pratishtha Bhavan, Kolkata, Old Cgo Annexe, West Bengal - 700 001 Maharishi Karve Road, Pan: Aaccc5470H Mumbai – 400 020 (Appellant) (Respondent) Present For: Assessee By : Shri Firoze B. Andhyarujina , A.R. & Shri Maneck Andhyarujina, Ar. Revenue By : Shri H.M. Bhatt, D.R. Date Of Hearing : 06.02.2024 Date Of Pronouncement : 26.02.2024 O R D E R Per Bench : All These Four Appeals Are Filed By The Assessee Against The Different Orders Of Commissioner Of Income Tax Passed Under Section 250 Of The Act Pertaining To Assessment Year 2018-19 &

For Appellant: Shri Firoze B. Andhyarujina , A.R. &For Respondent: Shri H.M. Bhatt, D.R
Section 234BSection 250Section 37(1)

made by the Appellant in accordance with law, satisfying all the requisite conditions and has been consistently allowed over the past years even in scrutiny assessments; and; (iii) the said claim was disallowed by the AO on an erroneous understanding of the law which was confirmed ... made by the Appellant in accordance with law, satisfying all the requisite conditions and has been consistently allowed over the past years even in scrutiny assessments; and; (iii) the said claim was disallowed by the AO on an erroneous understanding of the law which was confirmed

Js Capital Llc, Mumbai vs. ACIT (International Taxation) Circle 3 (1) (1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3396/MUM/2023[2020-21]Status: DisposedITAT Mumbai26 Feb 2024AY 2020-21

Bench: Shri Amit Shukla & Shri Amarjit Singhassessment Year: 2020-21 M/S. Js Capital Llc, Acit (International C/O Vasa Chauhan & Taxation) Associates, Circle-3(1)(1), Off. No.41, 3Rd Floor, Room No.1605, Vs. 16Th Floor, Hi Life Premises, P.M. Road, Air India Building, Santacruz West, Nariman Point, Mumbai – 400 054 Mumbai – 400 021 Pan: Aaecj2857M (Appellant) (Respondent) Present For: Assessee By : Ms. Hirali Desai, A.R. Shri Dhanesh Bafna, A.R. Shri Nirmal Hardik, A.R. Revenue By : Shri Anil Sant, D.R. Date Of Hearing : 07 . 02 . 2024 Date Of Pronouncement : 26 . 02 . 2024 O R D E R Per : Amarjit Singh: This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Acit, International Tax, Circle- 3(1)(1), Mumbai Dated 26.07.2023 For A.Y. 2020-21. The Assessee Has Raised The Following Grounds Before Us: “1. On The Facts & In The Circumstances Of The Case & In Law, The [Final Assessment] Order [Dated 26 July 2023] Passed By The Assistant Commissioner Of Income-Tax - International Tax Circle 3(1)(1) Mumbai

For Appellant: Ms. Hirali Desai, A.RFor Respondent: Shri Anil Sant, D.R
Section 111ASection 115ASection 143(2)Section 143(3)Section 144C(13)Section 153Section 234ASection 270ASection 70(2)

brief is that return of income declaring total income of Rs.4,99,98,090/- was filed on 13.02.2021. The case was subjected to scrutiny assessment and notice under section 143(2) of the Act was issued on 29.06.2021. The assessee is a non resident entity registered with the Security Exchange

Dhirubhai Mohanbhai Patel, HUF, Ahmedabad vs. PCIT-3, Ahmedabad

The appeal of the assessee is allowed

ITA 246/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad23 Feb 2024AY 2017-18

Bench: Mrs. Annapurna Gupta & Ms. Suchitra R. Kambleिनधा"रण वष"/Assessment Year: 2017-18 Principal Commissioner Of Dhirubhai Mohanbhai Patel, Huf Income-Tax-3, 16, Vikram Plotting, Nr. Bajarang Vs. Ahmedabad Ashram, Thakkarbapa Nagar, Bapunagar-382350 Pan : Aaghd 1362 L अपीलाथ"/ (Appellant) अपीलाथ" "" यथ" "" यथ"/ (Respondent) अपीलाथ" अपीलाथ" "" "" यथ" यथ" Assessee By : Shri Parin Shah, Ar Revenue By : Shri Kamlesh Makwana, Cit-Dr सुनवाई क" तारीख/Date Of Hearing : 19.02.2024 घोषणा क" तारीख /Date Of Pronouncement: 23.02.2024 आदेश/O R D E R आदेश आदेश आदेश Per Annapurna Gupta: This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Learned Principal Commissioner Of Income-Tax-3, Ahmedabad [Hereinafter Referred To As “Pcit” In Short] Dated 10.03.2022, In Exercise Of His Revisionary Powers Under Section 263 Of The Income-Tax Act, 1961 [Hereinafter Referred To As “The Act” In Short], For The Assessment Year 2017-18. 2. The Grounds Of Appeal Raised By The Assessee Are As Under :- “1. The Order Passed By The Pcit Is Bad In Law & Required To Be Quashed. 2. Ld. Pcit Erred In Law & On Facts In Initiating Proceedings U/S 263 Of The Act Ignoring Fact That Issue Raised In Show Cause Notice U/S 263 Of The Act Has Been Properly Verified By Ao During Scrutiny Assessment Proceedings. 3. Ld. Pcit Erred In Law & On Facts In Proceedings With Revision Jurisdiction Ignoring Fact That Order Passed By Ao Is Neither Erroneous Nor Prejudicial To The Interest Of Revenue.

For Appellant: Shri Parin Shah, ARFor Respondent: Shri Kamlesh Makwana, CIT-DR
Section 142(1)Section 263

ignoring fact that issue raised in show cause notice u/s 263 of the Act has been properly verified by AO during scrutiny assessment proceedings. 3. Ld. PCIT erred in law and on facts in proceedings with revision jurisdiction ignoring fact that order passed by AO is neither erroneous nor prejudicial

ITO 28 (1)(1), Mumbai vs. Gahlot Construction, Mumbai

In the result, the appeal of the revenue & CO of the assessee is dismissed

ITA 2475/MUM/2021[2008-09]Status: DisposedITAT Mumbai23 Feb 2024AY 2008-09

Bench: Shri Br Baskaran, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T. A. No. 2475/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2008-09) Ito-28(1)(1) बिधम/ M/S. Gahlot Construction Room No. 329, Tower No. Plot No-28A, Gahlot Vs. 6, 3Rd Floor, Vashi Railway Complex, Sector-10, Station, Navi Mumbai- Nerul, Navi Mumbai- 400703. 400703. Cross Objection No. 82/Mum/2023 Arising Out Of I.T.A. No.2475/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2008-09) M/S. Gahlot Construction बिधम/ Ito-28(1)(1) Plot No-28A, Gahlot Room No. 329, Tower Vs. No. 6, 3Rd Floor, Vashi Complex, Sector-10, Nerul, Navi Mumbai-400703. Railway Station, Navi Mumbai-400703. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaofm5698J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Ritika Agarwal Revenue By: Shri Raj Singh Meel (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 30/01/2024 घोषणा की तारीख /Date Of Pronouncement: 23/02/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue; & The Assessee Has Filed A Cross Objection (Co) Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [Hereinafter Referred To As The “Cit(A)”] Dated 30.10.2021 For The Ay. 2008-09. 2. The Main Grievance Of The Revenue Is Against The Action Of The Ld. Cit(A) Deleting The Addition Of Rs.5 Cr Which Was Added By The

For Appellant: Ms. Ritika AgarwalFor Respondent: Shri Raj Singh Meel (Sr. AR)
Section 132Section 139Section 147Section 151Section 153CSection 68

contra, the Ld. AR appearing for the assessee opposed the submission of the Ld. DR and submitted that the assessee firm had already undergone scrutiny assessment for AY 2008-09 and pointed out that pursuant to search action carried out by Department, the AO issued notice u/s 153C

Aark Infosoft Private Limited, Ahmedabad vs. The ACIT, Circle-1(1)(1), Ahmedabad

The appeal of the assessee is allowed

ITA 681/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad21 Feb 2024AY 2017-18

Bench: Mrs. Annapurna Gupta & Ms. Suchitra R. Kambleिनधा"रण वष"/Assessment Year: 2017-18 Vs. Aark Infosoft Private Limited, The Acit, 45, Shetrunjay, 2Nd Floor, Above Circle-1(1)(1), Central Bank Of India, Bhattha Ahmedabad Cross Road, Paldi, Ahmedabad Gujarat-380007 Pan : Aahca 9986 H अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" Assessee By : Shri Divyang Shah, Ar Revenue By : Shri Santosh Kumar, Sr. Dr सुनवाई क" तारीख/Date Of Hearing : 08.02.2024 घोषणा क" तारीख /Date Of Pronouncement: 21.02.2024 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Gupta: Present Appeal Has Been Filed By The Assessee Against Order Of The Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As "Cit(A)" For Short] Dated 27.07.2023 Passed Under Section 250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As "The Act" For Short], For The Assessment Year (Ay) 2017-18. 2. The Grounds Raised By The Assessee Are As Under:- “1. Whether On The Facts & Circumstances Of The Case & In Law, Ld. Cit(A) Has Erred In Issuing A Notice U/S 143(2) Of The Act? 2. Whether On The Facts & In Circumstances Of The Case & In Law, Ld. Cit(A) Has Erred In Making Disallowance Of Employees' Contribution To Pf & Esic Of Rs.5,51,657/- U/S 36(1) (Va) Of The Act?

For Appellant: Shri Divyang Shah, ARFor Respondent: Shri Santosh Kumar, Sr. DR
Section 139(9)Section 143(2)Section 250Section 269SSection 36(1)Section 40Section 68

notice under section 143(2) of the Act is a statutory notice, upon issuance of which, the Assessing Officer assumes jurisdiction to frame the scrutiny assessment under sub-section (3) of section 143 of the Act. Consequently, if such notice is not issued within the period specified in sub-section

Vrinda Engineers Pvt. Ltd., Kolkata vs. PCIT, Cer-1, Kolkata.

In the result, both the appeals of the assessee are allowed

ITA 1274/KOL/2023[2012-13]Status: DisposedITAT Kolkata21 Feb 2024AY 2012-13

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Boradi.T.A. Nos. 1274/Kol/2023 Assessment Year: 2012-2013 Vrinda Engineers Pvt. Ltd.,.......................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2Nd Floor, Kolkata-700069 [Pan: Aaacv9131E] -Vs.- Principal Commissioner Of Income Tax,....Respondent Central-1, Kolkata, Aayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107 -A N D- I.T.A. Nos. 1232/Kol/2023 Assessment Year: 2012-2013 Vrinda Engineers Pvt. Ltd.,.......................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2Nd Floor, Kolkata-700069 [Pan: Aaacv9131E] -Vs.- Assistant Commissioner Of Income Tax,....Respondent Central Circle-1(1), Kolkata, Aayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107

Section 142(1)Section 143(3)Section 263Section 4

these materials would indicate that the assessee was always vigilant and has been prosecuting the income tax litigation. He has participated the scrutiny assessment passed on 13.11.2014 under section 143(3) of the Income Tax Act in this A.Y. Thereafter he participated in the reassessment proceeding, which was framed ... income electronically on 29.09.2012, which was revised on 30.09.2012 showing total income of Rs.1,48,03,950/-. This return was taken up for scrutiny assessment by issuance of a notice under section 143(2) of the Income Tax Act. After due enquiries, ld. Assessing Officer has passed an assessment order