Compulsory scrutiny of returns involving refund of Rs. 5 lakhs or above - manual selection of certain cases - Income Tax - INSTRUCTION 01/2008

Compulsory scrutiny of returns involving refund of Rs. 5 lakhs or above - problem in selection INSTRUCTION NO. 1/2008, DATED 9-1-2008 1. Kindly refer to above. 2. Your attention is drawn to the guidelines for selection of cases under scrutiny for the F. Y. 2007-08 under which claim of refund of Rs. 5 lakhs or above is one of the criteria for compulsory scrutiny. Such cases were to be selected for scrutiny by CASS in all the networked stations and manually in non-networked stations. 3. Instances have been brought to the notice of the Board wherein cases involving refund of Rs. 5 lakhs or above are not being picked up for scrutiny by the CASS in the networked stations. This happened in cases where credit for prepaid taxes is not being given at the time of processing for want of necessary documentary evidence. Such cases, thereof, do not fall in the category of determined refund of Rs. 5 lakhs or more and consequently are not picked up by the CASS. Subsequently, rectification orders are passed manually on submission of necessary evidence in respect of prepaid taxes and the data is not captured in the AST. As a result, several such cases involving refund of Rs. 5 lakhs or above have been left out of the selection process. 4. I am directed to state that all such refund cases that have been left out by CASS for the reasons mentioned in para 3 above should be picked up for scrutiny through manual intervention in the networked stations. This may be brought to the notice of all concerned for strict compliance. F.No. 225/260/2007-ITA-II