Procedure of Selection of Cases for "Scrutiny" for Corporate Assessees. - Income Tax - Instruction No. 10/2003

INSTRUCTION NO. 10/2003 F.No. 225/74/2003-ITA.II Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, September 25, 2003 To, All Cadre Controlling CCsIT Sub: Procedure of Selection of Cases for "Scrutiny" for Corporate Assessees. Sir/Madam, In supercession of earlier instructions on the above subject, I am directed to state the procedure for selection of Cases of Corporate Assessees for Scrutiny during the current financial year 2003. 2.The following categories of cases shall be compulsorily scrutinized:- 1) All public Sector Undertakings and Banks. 2) All Cases wherein Addition/Disallowance of Rs.1 lakh and above has been sustainded by the CIT (Appeal) in the preceeding year. 3) All Search Seizure Cases. 4) All Survey (u/s 133A) Cases. 5) Cases in respect of which information is received from other Agencies pointing out tax evasion. 6) In any other Case, where the Department receives information regarding credible evidence of tax evasion. 7) Cases where the value of International Transaction (as defined u/s 92B of the IT Act, 1961 exceeds Rs. 5 crores. 3. Random seclection In addition to the above cases are to be selected on a "Random Basis" from the list of companies compiled on CD-Rom. These cases may be split into two categories. i) companies whose paid-up capital exceeds Rs 1 crore. ii) companies having a paid-up capital of Rs 1 crore and below. These cases may be arranged alphabetically in two separate lists. In case of companies whose paid up capital exceeds Rs.1 crore, one out of every four cases is to be selected for scrutiny out of the list so prepared i.e. serial no. 1, 5, 9,....... In case of companies having a paid up capital of Rs.1 crore and below, one out of every 15 cases is to be selected for scrutiny out of the list prepared i.e. serial no. 1, 16, 31, .... 4. These instructions may be brought to the notice of all concerned. UPAMANYU BASU DIRECTOR OF ITA-I