Exclusion of cases from sample scrutiny. - Income Tax - 1922/1995

INSTRUCTION NO. 1922/1995 Dated: March 9, 1995 Under Board's Instruction No. 1917 dated 3-6-1994 certain categories of cases were kept outside the scope of sample scrutiny during financial year 1994-95. One such category consisted of those assessees who declared a total income for the asst. year 1994-95 that was more by 30 percent of the total income returned for the asst. year 1993-94 subject to the conditions that : (a) the income for both the asst. years exceeded the basic exemption limit; (b) the total income for the asst.year 1993-94 was Rs. 5 lakhs or less; and (c) the tax was fully paid for the asst.year 1994-95 before the return was filed. 2. Suggestions have been received to extend this scheme for the asst.year 1995-96 also. After considering them, it has been decided that the above norm of exclusion from sample scrutiny could be extended for the asst. year 1995-96 also in such cases where the following criteria are satisfied :- (i) the income returned for asstt. year 1995-96 is at least 30% more than the total income returned for the asst. year 1994-95; (ii) the total incomes for the asst. years 1994-95 and 1995-96 exceed the basic exemption limit; (iii) the total income for the asst. year 1994-95 does not exceed Rs. 5 lakhs; and (iv) taxes for the asst. year 1995-96 are fully paid before the return is filed for that year. If, however, the case falls under the compulsory scrutiny basket, the above norms of exclusion from scrutiny will not apply. This may be brought to the notice of all assessing officers in your region.