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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

Subashini Sood, South Delhi vs. DCIT, New Delhi

Appeal is partly allowed in the aforesaid terms

ITA 4077/DEL/2025[2017-18]Status: DisposedITAT Delhi24 Sept 2025AY 2017-18

Bench: Shri Mahavir Singh, Hon’Bleasstt. Year : 2017-18 Subashini Sood, Vs. Dcit, New Delhi C-251, 6Th Floor, Defence Colony, New Delhi – 110 024 (Pan: Ajsp8300A) (Appellant) (Respondent) Appellant By : Ms. Agni Choudhary, Adv. & Sh. Raghav Sharma, Ca (Thru Vc) & Sh. Rahul Agarwal, Ca Respondent By : Shri Manoj Kumar, Sr. Dr. Date Of Hearing 04.09.2025 Date Of Pronouncement 24.09.2025 Order This Appeal By The Assessee Is Emanating From The Order Of The Ld. Addl/Jcit(A)-2 Noida Dated 05.10.2024 On The Solitary Ground Relating To Sustaining The Addition Of Rs. 11,47,000/- Made By The Ao U/S. 69A Of The Act By Treating The Cash Deposit As Unexplained Investment. 2. Brief Facts Of The Case Are That Assessee Filed Her Return Of Income On 23.10.2017, Declaring A Total Income Of Rs. 2,72,210/-. During The Course Of Scrutiny Assessment, The Ao Found That The Assessee Had Deposited Rs. 11,47,000/- In Her Bank Account During The Demonetization Period, Specifically Between

For Appellant: Ms. Agni Choudhary, Adv. & Sh. RaghavFor Respondent: Shri Manoj Kumar, Sr. DR
Section 115Section 115BSection 69A

case are that assessee filed her return of income on 23.10.2017, declaring a total income of Rs. 2,72,210/-. During the course of scrutiny assessment, the AO found that the assessee had deposited Rs. 11,47,000/- in her bank account during the demonetization period, specifically between November

Six Continents Hotels, Inc., Usa vs. The Assistant Commissioner of Income Tax, Circle 3(1)(2), (International Tax), Delhi, New Delhi

In the result, appeal of the assessee is allowed

ITA 360/DEL/2025[2022-2023]Status: DisposedITAT Delhi24 Sept 2025AY 2022-2023

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.360/िद"ी/2025(िन.व. 2022-23) Six Continents Hotels, Inc. C/O- Bsr & Co. Llp, Dlf Building #10, 8Th Floor, Tower-B, Dlf Cyber City, Phase Ii, Gurgaon, Haryana-122002 ...... अपीलाथ"/Appellant Pan: Aahcs-7853-B बनाम Vs. Deputy Commissioner Of Income Tax, Circle 3(1)(2), International Taxation, ..... "ितवादी/Respondent Civic Centre, Minto Road, Delhi 110002 अपीलाथ" "ारा/ Appellant By : S/Shri S.K. Aggarwal, Himanshu Aggarwal & Manan Madan, Chartered Accountants "ितवादी"ारा/Respondent By : Shri Nikhil Kumar Govila, Cit-Dr सुनवाई क" ितिथ/ Date Of Hearing : 09/07/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 24/09/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 26.11.2024 Passed U/S. 143(3) R.W.S. 144C(13) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’), For Assessment Year 2022-23. 2. The Assessee In Appeal Has Assailed The Assessment Order On Following Two Counts:

For Appellant: S/Shri S.K. Aggarwal, Himanshu Aggarwal &For Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 143(3)Section 9(1)(vii)

ITAT quashed the assessment orders on non-compliance of the DIN requirement. (vi) For A.Y. 2019-20, the matter was not picked up for scrutiny assessment and there was no assessment order. 5 (vii) For AY 2020-21, the Delhi ITAT vide order dated 09.05.2024 in ITA No.2355/Del/2023 following

Assistant Commissioner of Income Tax, Central Circle-3, Surat vs. Shrinidhi Enterprize, Surat

In the result, both the appeals of the Revenue are, hereby, dismissed

ITA 914/SRT/2024[2015-16]Status: DisposedITAT Surat23 Sept 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Bijayananda Prusethआयकर अपील सं /Ita Nos.914/Srt/2024 & 797/Srt/2024 िनधा"रण वष" /Assessment Years : 2015-16 & 2016-17 The Acit Shrinidhi Enterprize Central Circle-3 बनाम/ 6/1862, 63, Ground Floor Surat Ghanshyam Bhuvan V/S. Bali Sheri, Mahidharpura Surat – 395 003 "थायी लेखा सं./Pan:Acbfs 6484 R (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Shri Rasesh Shah, Ca Revenue By : Shri Ravi Kant Gupta, Cit(Dr) Shri Ajay Uke, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 05/08/2025 घोषणा की तारीख /Date Of Pronouncement: 23/09/2025 आदेश/O R D E R Per Sanjay Garg:

For Appellant: Shri Rasesh Shah, CAFor Respondent: Shri Ravi Kant Gupta, CIT(DR)
Section 139(1)Section 143(3)Section 147Section 44A

Income Tax Act, 1961 (hereinafter referred to as “the Act”) on 29.09.2015 declaring total income at Rs. 7,60,01,880/-. Subsequently, scrutiny assessment under Section 143(3) of the Act was completed on 20.12.2017 accepting the returned income. The case was reopened under Section ... return of income disclosing regular as well as additional income totalling to Rs.7,60,01,880/- (Rs.3.09crores + Rs.4.51 crores), which was accepted in the scrutiny assessment. It was argued that the material relied upon by the AO was only of labour contractors’ bank statements, ITRs, and computations, with no direct

Assistant Commissioner of Income Tax, Central Circle-3, Surat vs. Shrinidhi Enterprize, Surat

In the result, both the appeals of the Revenue are, hereby, dismissed

ITA 797/SRT/2024[2016-17]Status: DisposedITAT Surat23 Sept 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Bijayananda Prusethआयकर अपील सं /Ita Nos.914/Srt/2024 & 797/Srt/2024 िनधा"रण वष" /Assessment Years : 2015-16 & 2016-17 The Acit Shrinidhi Enterprize Central Circle-3 बनाम/ 6/1862, 63, Ground Floor Surat Ghanshyam Bhuvan V/S. Bali Sheri, Mahidharpura Surat – 395 003 "थायी लेखा सं./Pan:Acbfs 6484 R (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Shri Rasesh Shah, Ca Revenue By : Shri Ravi Kant Gupta, Cit(Dr) Shri Ajay Uke, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 05/08/2025 घोषणा की तारीख /Date Of Pronouncement: 23/09/2025 आदेश/O R D E R Per Sanjay Garg:

For Appellant: Shri Rasesh Shah, CAFor Respondent: Shri Ravi Kant Gupta, CIT(DR)
Section 139(1)Section 143(3)Section 147Section 44A

Income Tax Act, 1961 (hereinafter referred to as “the Act”) on 29.09.2015 declaring total income at Rs. 7,60,01,880/-. Subsequently, scrutiny assessment under Section 143(3) of the Act was completed on 20.12.2017 accepting the returned income. The case was reopened under Section ... return of income disclosing regular as well as additional income totalling to Rs.7,60,01,880/- (Rs.3.09crores + Rs.4.51 crores), which was accepted in the scrutiny assessment. It was argued that the material relied upon by the AO was only of labour contractors’ bank statements, ITRs, and computations, with no direct

Bhim Singh, Jaipur vs. I.T.O, Ward 4(1), Jaipur

In the result, the appeal of the assessee is allowed

ITA 740/JPR/2025[A.Y. 2017-18]Status: DisposedITAT Jaipur23 Sept 2025

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM आयकर अपील सं./ITA No.740/JPR/2025 निर्धारण वर्ष/Assessment Year : 2017-18 Shri Bhim Singh C-24, Ambabari Metal Colony Jaipur - 302 023 बनाम Vs. The ITO Ward 4(1) Jaipur प्रत्यर्थी / Respondent स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: CFRPS 5909A अपीलार्थी / Appellant निर्धारिती की ओर से / Assessee by : Shri G.M. Mehta, CA राजस्व की ओर से / Revenue by: Shri Gautam Singh Choudhary, JCIT-DR सुनवाई की तारीख / Date of He

For Appellant: Shri G.M. Mehta, CAFor Respondent: Shri Gautam Singh Choudhary,JCIT-DR
Section 145(3)Section 250Section 69A

appearing in cash book submitted to him and also to AO for relevant year which is inclusive of income earned and accepted in scrutiny assessment. 2. Ld. CIT(A) has erred in providing a wrong recast cash books of earlier years in order u/s 250 of I.T. Act by including ... book submitted to him and also to ld. AO for the year ended on 31.03.2017 which is inclusive of income earned and accepted in scrutiny assessment. 5 SHRI BHIM SINGH VS ITO, WARD 4(1), JAIPUR As per cash book prepared through an Accountant the available balance as on November

Vedic Foundation Private Limited, Delhi vs. Income Tax Officer, Ward 26(2), Delhi

Appeal is allowed

ITA 4975/DEL/2025[2017-18]Status: DisposedITAT Delhi23 Sept 2025AY 2017-18

Bench: Sh. Satbeer Singh Godaraita No. 4975/Del/2025 : Asstt. Year : 2017-18 Vedic Foundation Pvt. Ltd., Vs Income Tax Officer, 43-B, First Floor, Mig Flat, Ward-26(2), Pocket-B Dilshad Garden, New Delhi-110002 New Delhi-110095 (Appellant) (Respondent) Pan No. Aaaci8590C Assessee By: None Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 23.09.2025 Date Of Pronouncement: 23.09.2025 Order This Assessee’S Appeal For Assessment Year 2017-18, Arises Against The Addl./Jcit(A), Panchkula’S Din & Order No. Itba/Apl/S/250/2025-26/1077029340(1) Dated 13.06.2025, In Proceedings U/S 143(3) Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: NoneFor Respondent: Sh. Manoj Kumar, Sr. DR
Section 143(2)Section 143(3)Section 69

Assessing Officer in making additions in respect of issues not mentioned in limited scrutiny were beyond jurisdiction of the Assessing Officer as the scrutiny assessment was selected for limited scrutiny under Section 143(2) and not complete scrutiny. The Department objected to the additional ground which were raised ... concerned has been placed under suspension. Therefore, it was reiterated that the Assessing Officer should abide by the Instructions of CBDT while completing limited scrutiny assessment and should be scrupulous about maintenance of note sheets in assessment folders. 9. Thus, considering these aspects, we are of the view that