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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

Factive Limited, Mumbai vs. Assistant Commissioner of Income Tax, (International Taxation )-2(3)(1), Mumbai

In the result, both the appeals are partly allowed

ITA 4706/MUM/2023[2021-22]Status: DisposedITAT Mumbai15 Sept 2025AY 2021-22

Bench: Shri Saktijit Dey & Shri Girish Agrawal & Factive Limited Asst. Cit(It)-2(3)(1) C/O. Price Waterhouse & Co. Llp 609, 6Th Floor, Kautilya Bhavan, 252, Veer Savarkar Marg, C-41, C-43, G Block, Vs. Shivaji Park, Dadar, Bandra Kurla Complex, Mumbai-400 028 Bandra (E), Mumbai Pan/Gir No. Aaccf 5745 J (Appellant) : (Respondent) : Shri Dhanesh Bafna A/W Appellant By Shri Yogesh Malpani & Ms. Kinjal Patel Respondent By : Shri Krishna Kumar (Sr. Dr) Date Of Hearing : 21.08.2025 Date Of Pronouncement : 15.09.2025 O R D E R Per Saktijit Dey: Captioned Appeals By The Assessee Are Against The Final Assessment Orders Passed U/S. 143(3) R.W.S 144C(13) Of The Income Tax Act, 1961 (‘The Act’ For Short), In Pursuance To The Directions Of Learned Dispute Resolution Panel (‘Ld. Drp' For Short) & Pertains To The Assessment Years (A.Y.) 2021-22 & 2022-23. 2. Since The Substantive Issue On Merits, Arising In The Appeals Are More Or Less Common In Both The Appeals, We Propose To Take Up Ita No. 4706/Mum/2023, Pertaining To A.Y. 2021-22, As The Lead Appeal. (A.Ys. 2021-22 & 2022-23) Factive Limited Vs. Asst. Cit(It) 3. Ground Nos. 1, 2 & 3 Are Basically On Legal Issues, Challenging The Validity Of The Final Assessment Order. At The Outset, Ld. Counsel Appearing For The Assessee Submitted That He Would Prefer To Address The Issues On Merits And, If Warranted, May Press The Legal Grounds.

For Respondent: Shri Krishna Kumar (Sr. DR)
Section 143(3)Section 9(1)(vi)

course of assessment proceedings, the AO noticed that the assessee had similar receipts in A.Ys. 2015-16 to 2019-20. In course of scrutiny assessment proceedings in these years, negating assessee’s claim of non-taxability of such receipts, the A.O. had treated them as royalty ... further observed that the nature of receipts are identical to the nature of receipts in preceding assessment years, which were subjected to scrutiny assessment. Thus, he was of the view that there is no change in the nature of transaction as compared to earlier assessment years, wherein, the receipts have

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

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

ITA 1636/CHNY/2025[2018-19]Status: DisposedITAT Chennai12 Sept 2025AY 2018-19

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

filed its original return of income by declaring a taxable income as nil. The AO had subsequently selected the return of income for scrutiny assessment and completed the assessment u/s.143(3) of the Act and accepted the return of income filed for the A.Ys ... return of income for the A.Y. 2018-19 on 25.09.2019 admitting a total income of Rs.Nil. The AO had taken up the case for scrutiny assessment and issued statutory notices. The assessee filed the details and documents in support of the return of income filed along with the details

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

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

ITA 1635/CHNY/2025[2017-18]Status: DisposedITAT Chennai12 Sept 2025AY 2017-18

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

filed its original return of income by declaring a taxable income as nil. The AO had subsequently selected the return of income for scrutiny assessment and completed the assessment u/s.143(3) of the Act and accepted the return of income filed for the A.Ys ... return of income for the A.Y. 2018-19 on 25.09.2019 admitting a total income of Rs.Nil. The AO had taken up the case for scrutiny assessment and issued statutory notices. The assessee filed the details and documents in support of the return of income filed along with the details

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

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

ITA 1634/CHNY/2025[2016-17]Status: DisposedITAT Chennai12 Sept 2025AY 2016-17

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

filed its original return of income by declaring a taxable income as nil. The AO had subsequently selected the return of income for scrutiny assessment and completed the assessment u/s.143(3) of the Act and accepted the return of income filed for the A.Ys ... return of income for the A.Y. 2018-19 on 25.09.2019 admitting a total income of Rs.Nil. The AO had taken up the case for scrutiny assessment and issued statutory notices. The assessee filed the details and documents in support of the return of income filed along with the details

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer Non Corp Ward 1(2), Nungambakkam

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

ITA 1633/CHNY/2025[2015-16]Status: DisposedITAT Chennai12 Sept 2025AY 2015-16

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

filed its original return of income by declaring a taxable income as nil. The AO had subsequently selected the return of income for scrutiny assessment and completed the assessment u/s.143(3) of the Act and accepted the return of income filed for the A.Ys ... return of income for the A.Y. 2018-19 on 25.09.2019 admitting a total income of Rs.Nil. The AO had taken up the case for scrutiny assessment and issued statutory notices. The assessee filed the details and documents in support of the return of income filed along with the details

M/S. Alternative for India Development, Chennai vs. ITO, Exemption Ward-4, Chennai

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 1555/CHNY/2025[2018-19]Status: DisposedITAT Chennai12 Sept 2025AY 2018-19

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita No.:1555/Chny/2025 धनिाजरण वर्ज / Assessment Year: 2018-19 Alternative For India Development, Income Tax Officer, No. 1, Vgn Nagar, Vs. Exemption Ward -4, Iyyappanthangal, Chennai. Kattupakkam Post, Chennai – 600 056. [Pan:Aaata-4184-H] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : Shri. K.Viswa Padmanabhan, Ca. प्रत्यथी की ओर से/Respondent By : Shri. P.K. Senthil Kumar, Addl.Cit. सुनवाई की तारीख/Date Of Hearing : 15.07.2025 घोर्णा की तारीख/Date Of Pronouncement : 12.09.2025 आदेश /O R D E R Per S. R. Raghunatha, Am :

For Appellant: Shri. K.Viswa Padmanabhan, CAFor Respondent: Shri. P.K. Senthil Kumar, Addl.CIT
Section 11Section 11(1)Section 12ASection 143(3)

towards the income utilised :-2-: ITA. No:1555/Chny/2025 for charitable or religious purposes amounting to Rs.1,69,43,050/-. The case was selected for scrutiny assessment and issued statutory notices from time to time. However, assessee filed only few documents and information to the AO during the assessment proceedings. Later

Assistant Commissioner of Income Tax, Corporate Circle-3(1), Chennai vs. Schneider Electric Systems India Private Limited, Chennai

In the result all the four appeals of the Assessee and both the appeals of the revenue are partly allowed

ITA 2959/CHNY/2024[2016-17]Status: DisposedITAT Chennai11 Sept 2025AY 2016-17

Bench: Shri George George K & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.: 2754, 2755, 2756 & 2757/Cnny/2024 धनिाजरण वर्ज / Assessment Year: 2015-16, 2016-17, 2017-18, 2018-19 & Sa 22/Chny/2025 [In Ita 2757/Chny/2024] धनिाजरण वर्ज / Assessment Year: 2018-19 Schneider Electric Systems Acit India Private Limited, Vs. Corporate Circle 3(1) Sp Plot, 16-20 & 20A, Chennai. Tamarai Tech Park, Inner Ring Road, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032. [Pan: Aabcs-8027-M] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) आयकर अपील सं./Ita Nos.: 2958 & 2959/Chny/2024 धनिाजरण वर्ज / Assessment Year: 2015-16, 2016-17 Acit Schneider Electric Systems India Private Limited, Corporate Circle 3(1) Vs. Chennai. Sp Plot, 16-20 & 20A, Tamarai Tech Park, Inner Ring Road, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032. [Pan: Aabcs-8027-M] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) धनिाजररती की ओर से/Assessee By : Shri. Rohit Tiwari, Advocate & Ms. Tanya, Advocate (Virtual) राजस्व की ओर से /Revenue By : Shri. Arv Sreenivasan, Cit.

For Appellant: Shri. Rohit Tiwari, Advocate &For Respondent: Shri. ARV Sreenivasan, CIT
Section 143(1)Section 250

filed its return of income (‘ROI’) for the above Assessment Years (‘AY’), which was processed u/s.143(1) of the Act and was selected for scrutiny assessment. :-3-: ITA. Nos:2754 to 2757/Chny/2024, ITA. Nos:2958 & 2959/Chny/2024 & SA No.:22/Chny/2025 3. During the scrutiny assessment proceedings, the Transfer Pricing Officer

Assistant Commissioner of Income Tax, Corporate Circle-3(1), Chennai vs. Schneider Electric Systems India Private Limited, Chennai

In the result all the four appeals of the Assessee and both the appeals of the revenue are partly allowed

ITA 2958/CHNY/2024[2015-16]Status: DisposedITAT Chennai11 Sept 2025AY 2015-16

Bench: Shri George George K & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.: 2754, 2755, 2756 & 2757/Cnny/2024 धनिाजरण वर्ज / Assessment Year: 2015-16, 2016-17, 2017-18, 2018-19 & Sa 22/Chny/2025 [In Ita 2757/Chny/2024] धनिाजरण वर्ज / Assessment Year: 2018-19 Schneider Electric Systems Acit India Private Limited, Vs. Corporate Circle 3(1) Sp Plot, 16-20 & 20A, Chennai. Tamarai Tech Park, Inner Ring Road, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032. [Pan: Aabcs-8027-M] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) आयकर अपील सं./Ita Nos.: 2958 & 2959/Chny/2024 धनिाजरण वर्ज / Assessment Year: 2015-16, 2016-17 Acit Schneider Electric Systems India Private Limited, Corporate Circle 3(1) Vs. Chennai. Sp Plot, 16-20 & 20A, Tamarai Tech Park, Inner Ring Road, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032. [Pan: Aabcs-8027-M] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) धनिाजररती की ओर से/Assessee By : Shri. Rohit Tiwari, Advocate & Ms. Tanya, Advocate (Virtual) राजस्व की ओर से /Revenue By : Shri. Arv Sreenivasan, Cit.

For Appellant: Shri. Rohit Tiwari, Advocate &For Respondent: Shri. ARV Sreenivasan, CIT
Section 143(1)Section 250

filed its return of income (‘ROI’) for the above Assessment Years (‘AY’), which was processed u/s.143(1) of the Act and was selected for scrutiny assessment. :-3-: ITA. Nos:2754 to 2757/Chny/2024, ITA. Nos:2958 & 2959/Chny/2024 & SA No.:22/Chny/2025 3. During the scrutiny assessment proceedings, the Transfer Pricing Officer