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himani92


What is the differance between Summary assessment and Scrutiny Assessment ???

rchgiri

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Dear Himani92,

Please find my reply.

Section 143 of the Income-tax Act, 1961 (‘the Act’) provides two types of assessment — ‘summary assessment’ u/s.143(1) and ‘scrutiny assessment’ u/s.143(2).

As the name suggests, under ‘summary assessment’, the AO makes regular assessment without inquiry and makes adjustments, if any, to the income, limited to any arithmetical error in the return or an incorrect claim which is apparent from any information in the return.

Scrutiny assessment under section 143(2) on the other hand provides for regular assessment after detailed inquiry. Section 143(2)(ii) enables the AO to make a regular assessment after detailed inquiry.The proviso to section 143(2)(ii) of the Act prescribes the service of notice on the assessee within a particular period as a pre-requisite to enable the AO to complete an assessment. The notice should specify a date and should call upon the assessee either to attend before the officer on that date or produce or cause to be produced before the officer, on that date, any evidence which the assessee may rely upon in support of his return and it is then up to the assessee to satisfy the officer by producing necessary material that the return is correct and complete. At present, the proviso to section 143(2)(ii) specifies six months from the end of the financial year in which the return is furnished, as the time-limit within which notice needs to be served on the assessee for valid assessment of his return of income.

Have a happy learning.

Nishakejriwal


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Thank u so much sir.

Keep Helping!!!1

Soundharya


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Thank you sir.

Even I was in need of the answer

https://sounds-takeonit.blogspot.com

himani92


thank u ......... cheers

rchgiri

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Dear Friends,

I have the following posts for more clarity as to "how the scrutiny asseessment is done".

Please find the following link

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for "CBDT emphasises on improving quality of scrutiny assessments".


Improving quality of scrutiny assessments – Central Action Plan (‘CAP’) for Financial Year 2012-13

Letter DO F.No. 225/97/2012/ITA.II, dated 25-9-2012

As you are aware, the CBDT has laid special emphasis in the CAP 2012-13 for improving the quality of assessments. In this regard, a strategy has been mentioned at Annexure-II (pgs. 38-43) of CAP Document.

2. The then Member (IT) had asked the Chief-Commissioners of Income-tax (‘CCsIT’) to send list of top 100 quality assessments in respective charges. This direction of Member was not complied with by many of CCsIT which has been viewed seriously by the Board. It is expected from the field-formation that in future the directions of the Board will not be ignored.

3. Some CCsIT have forwarded the list in mechanical manner without bringing out the quality aspect of the assessments. The analysis of the information supplied to the Board shows that the quality of assessments in the FY 2011-12 has been far from satisfactory in majority of cases.

4. The CCsIT are therefore requested to sensitize the Assessing Officers in their Region to pay focused attention towards the pending assessments to be completed till March, 2013. The strategy mentioned in CAP document should be followed by each Assessing Officer to bring out the quality in assessments. The steps suggested in the guidelines for scrutiny cases should also be scrupulously adhered to.

I am confident that if proper attention is paid to this aspect of work at this stage it will help not only in improving quality of assessments but also in augmenting the post assessment tax revenues.

Have a happy learning.



Last edited by rchgiri on Fri 28 Sep 2012 - 14:43; edited 1 time in total

rchgiri

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Please find the following link

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for "Scope of scrutiny assessment in AIR cases under Income Tax Act 1961".

Income Tax Department nowadays selects almost all cases for scrutiny assessment under section 143(2) of Income Tax Act 1961 based upon AIR(Annual Information Return) transactions or through CASS. It is sometimes seen that when a case is selected for scrutiny assessment on the basis of AIR transactions, assessing officer also sometime tend to make additions on grounds other than AIR transactions like on the basis of inadequate withdrawals etc or on the basis of estimated additions.

Where a case is selected for scrutiny assessment on the basis of AIR transaction then the notice u/s 143(2) should be stamped with “the words AIR case” and the scope of enquiry of scrutiny assessment in such case should be only limited to such AIR transactions and no addition should be made on the basis of any other grounds as it has been clarified by CBDT in its instruction F.No.225/26/2006-ITA.II (Pt.) dated 08-08-2010.

It has been further stated in the said instructions by CBDT that a case may be taken up for wider scrutiny with the approval of the administrative Commissioner, where it is felt that apart from the AIR information there is a potential escapement of income more than Rs. 10 Lacs.

Thus in case of scrutiny assessment where the case is an AIR case i.e. selected on the basis of AIR transaction the scope of inquiry should be limited towards such AIR transactions only.

The above said instruction of CBDT is produced here below for ready reference of all concerned:

F.No.225/26/2006-ITA.II (Pt.)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, dated the 8th September, 2010

To
All Chief Commissioners of Income Tax
All Directors General of Income Tax
Sir/Madam,

Subject: Selection of cases for scrutiny on the basis of data in AIR returns and subsequent assessment proceedings-regarding.

Reference is invited to Board’s letter of even number dated 23rd May, 2007 regarding scope of enquiry in the scrutiny cases selected only on the basis of information received through the AIR returns.

2. The above mentioned guidelines have been reconsidered by the Board and it has been decided that the scrutiny of such cases would be limited only to the aspects of information received through AIR. However, a case may be taken up for wider scrutiny with the approval of the administrative Commissioner, where it is felt that apart from the AIR information there is a potential escapement of income more than Rs. 10 Lacs.

3. It has also been decided that in all the cases which are picked for scrutiny only on the basis of AIR information, the notice u/s 143(2) of Income Tax Act 1961 should clearly be stamped with “AIR Case”.
This should be immediately brought to the notice of all the officers working in your region.

Yours faithfully,
(Ajay Goyal)
Director (ITA.II)



Last edited by rchgiri on Fri 28 Sep 2012 - 14:35; edited 1 time in total

rchgiri

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Please find the following link

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for "Guidelines / Criteria For Income tax Scrutiny for Financial Year 2010-11 / Assessment Year 2011-12"

Initially Published by us on 27.09.2010 – Republished by us on 14.09.2011

GUIDELINES FOR SELECTION OF CASES FOR SCRUTINY DURING 2010-11
Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few categories of cases listed below.

List of cases selected during each month in accordance with the selection criteria mentioned below shall be submitted by the Assessing Officers to their respective Range heads by the 15th of the following month and also displayed on the Notice Board of their office.

These guidelines are meant only for the use of officers of the Income Tax Department. These are not be disclosed even if a request is made under the right to Information Act, in view of the decision of the Central Information Commission in the case of Shri Kamal Anand Vs Director (ITA-II), CBDT (Order No. CIC/AT/2007/00617 dated 21.02.2008).

SELECTION CRITERIA APPLICABLE TO ALL RETURNS AT ALL STATIONS:

a) Value of international transaction as defined u/s 92b exceeds Rs. 15 crores.

b) Cases involving addition in an earlier assessment year in excess of Rs.10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

c) Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs.10 Lakhs or more.
d) Assessments in survey cases for the financial year in which survey was carried out This criteria will not apply if all of the following conditions are fulfilled:

(i) There are no impounded books or documents.

(ii) There is no retraction of disclosure made during the survey.

(iii) Declared income, excluding any disclosure made during the survey, is nor less than the declared income of the preceding assessment year.

e) Assessment in Search & Seizure cases to be made under sections 158B, 158BC, 158BD, 153A 153C & 143(3) of the IT Act.

f) Assessments initiated under section 147 / 148 of the IT Act.

g) Assessing Officer may select any return of scrutiny after recording the reasons and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if there are compelling reasons and the case is not selected through CASS. There cases should be watched by CCIT / CIT in respect of the quality of assessment.
(F. NO. 225/93/2009/ITA.II)
_____________________________________________________________________
F.No.225/93/2009/ITA.II
‘New Delhi, the 8TH September, 2010.

To
All Chief Commissioners of Income-tax (CCA),
All Directors General of Income-tax;

Subject:- Central Action Plan – Identification of cases for scrutiny through manual selection for the year 2010-2011-regarding

Sir/Madam,

Reference is invited to Board’s-letter of even number dated 28.07.2010 on the subject above.

2. The Board has decided to modify the aforesaid guidelines regarding selection of cases for scrutiny as under:

a) In paragraph (c) of the aforesaid instruction, the words “ Rupees ten or more” were inadvertently mentioned, which may be read as “Rupees 10 crore or more”.

b) The following additional category of cases may also be selected manually for Scrutiny:
“Returns of income of Trusts/ AOPs etc, filed in return form ITR-7 where gross receipts exceed Rs.5 crore”

c) In partial modification of the Category (g) of guidelines dated 28.07.2010, wherein CCIT/DGIT were authorized to approve selection of cases, the following decision has been taken:

I. The Assessing Officers in mufossil stations may select a maximum number of twenty five cases per A.0 after recording reasons for the selection and with the approval of the Addl. CIT/JCIT in charge of the Range* if the Addl.CIT/JCIT happens to be the senior most officer in the station. However if the senior most officer at the station is of the rank of Commissioner , approval in this regard shall be given by the Coinmissioner.

II. In other areas,; i.e. Metros and bigger cities where Income – Tax office is headed by an officer of the rank of Chief Commissioner/ Director General of Income Tax, Assessing Officers will manually select cases for scrutiny after recording reasons for doing so with the prior approval of jurisdictional CCIT/ DGIT. The maximum number of cases selected for scrutiny shall, however, not exceed 10 (ten) per AO.

III. The authority giving approval for selection of cases for scrutiny as above shall monitor the cases approved by him/ her and ensure quality of assessments in these cases.
This may be brought to the notice of all the officers working in your region.

Source – Income Tax Department
Other Related Post-

1.Income Tax department strategy to meet the Financial Year 2009-2010 Budget target

2. Criteria / Guidelines for Income tax Scrutiny for Assessment year 2010-11 / Financial Year 2009-2010

3. No Routine Income Tax Scrutiny of Senior Citizens and Small Tax payers Having Gross Income less then 10 Lakh

4. AIR Related scrutiny assessments should be limited to info in AIR

rchgiri

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CSoC King
CSoC King
Please find the following link

[You must be registered and logged in to see this link.]

for "Guidelines / Criteria For Income tax Scrutiny for Financial Year 2009-10 / Assessment Year 2010-11"

Republished on 10th September 2011, Earlier Published on 14th August 2010

Guidelines for selection of cases for Scrutiny During 2010-11
1. Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few cases listed below.

2. List of cases selected during each month in accordance with selection criteria mentioned below shall be submitted by the Assessing officers to their respective Range heads by the 15th of the following month and also displayed on the notice Board of their offices .

3. These guidelines are meant only for the use of officers of the Income Tax Department .These are not to be disclosed even if a request is made under Right to Information Act, In view of the decision of the Central Information Commission in the case of Shri Kamal Vs Director (ITA-II), CBDT (order no CIC/AT/2007/00617 dated 21.02.2008)

Selection criteria Applicable to all return at all stations

a) Value of International transaction as defined in 92B exceeds 15 Crore.

b) Cases involving addition in an earlier assessment year in excess of Rs 10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before on appellate authority.

c) Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs 10 Lakh or more.

d) Assessment in survey cases for the financial year in which survey was carried out. This criteria will not apply if all of the following conditions are fulfilled:

i. There are no impounded books or documents.

ii. There is no retraction of disclosure, if any, made during the survey.

iii. Declared income, excluding any disclosure made during the survey, is not less than the declared income of the preceding year.

e) Assessment in search & Seizure cases to be made under section 158B, 158BC, 158BD, 153A, 153C & 143(3) of the IT Act.

f) Assessment Initiated under section 147/148 of the IT Act.

g) Assessing officer may select any return for scrutiny after recording he reason and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if, there are compelling reasons and the case is not selected through CASS. These cases should be watched by CCIT/CIT in respect of the quality of assessment.

(F.NO.225/93/2009/ITA.II)

Have a happy reading.

Nishakejriwal


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CSoC Smart User
Thank u so much sir. It is very useful to us.

Keep helping

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