Norms for scrutiny of total income u/s 143(4). - Income Tax - 1935/1996

INSTRUCTION NO. 1935/1996 Dated : March 12, 1996 Section(s) Referred: 143(4) Statute: Income - Tax Act, 1961 Under Board's Instruction No. 1922 dated 9-3-95 certain categories of cases were kept outside the scope of sample scrutiny. One such category consisted of those assessees who declared a total income for the assessment year 1995-96 that was more by 30 per cent of the total income returned for the assessment year 1994-95 subject to the conditions that: (a) the income for assessment years 1994-95 and 1995-96 exceeded the basic exemption limit. (b) the total income for the assessment year 1994-95 was Rs. 5 lakhs or less; and (c) the tax was fully paid for the assessment year 1995-96 before the return was filed. 2. It has been decided that the above norms of exclusion from sample scrutiny could be extended for the assessment year 1996-97 also in such cases where the following criteria are satisfied:- (i) the income returned for assessment year 1996-97 is at least 30 per cent more than the total income returned for the assessment year 1995-96. (ii) the total income for the assessment years 1995-96 and 1996-97 exceed the basic exemption limit. (iii) the total income for the assessment year 1995-96 does not exceed Rs. 5 lakhs; and (iv) taxes for the assessment year 1996-97 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. 3. This may be brought to the notice of all assessing officers in your region.