Procedure for Selection of Cases for "Scrutiny" for Non-corporate Assessees - Income Tax - 11

Instruction No : 11 <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> Date of Issue : 17-10-2003 Subject : Procedure for Selection of Cases for "Scrutiny" for Non-corporate Assessees In supersession of earlier Instruction on the above subject I am directed to state that the criteria and procedure for selection of cases of non-corporate assessees for scrutiny during the current financial year 2003-04, shall be as under : 2. Compulsory scrutiny The following categories of cases shall be compulsorily scrutinised : 1. All cases wherein addition/disallowance of Rs. one lakh and above has been sustained by the CIT(A) in the preceding year. 2. All search seizure cases. 3. All survey (u/s 133A) cases. 4. Cases in respect of which information is received from other agencies pointing out tax evasion. 5. In any other case, where the department receives information regarding credible evidence of tax evasion. 6. Cases where the value of international transaction (as defined under section 92B of the Income-tax Act, 1961) entered into by the assessee exceeds Rs. five crore. 3. Random selection ( a ) This will be applicable only to the non-corporate non-salary returns of income pertaining to assessment year 2002-03, filed upto 31-3-2003 and processed on AST software. ( b ) Random selection of cases will be done by the CIT and monitored by the CCIT concerned. ( c ) Taking a CIT charge as basis all the cases of CIT charge (not Assessing Officer wise or Range-wise should be arranged in descending order of income by running a query on AST as per procedure enclosed in the Annexure. It is clarified here that no separate lists for the cases related to each Assessing Officer or Range shall be prepared and only one consolidated list for all the cases of the CIT charge should be prepared : ( i ) Out of the top 1000 cases of the charge, one out of three cases from the list so prepared should be selected i.e. serial Nos. 1, 4, 7, etc. ( ii ) Out of the next 3000 cases, one out of five cases from the list so prepared should be selected, i.e. serial Nos. 1001, 1006, 1011, etc. ( iii ) Finally, out of the remaining cases, one out of hundred cases from the list so prepared should be selected, i.e. , cases at serial Nos. 4001, 4101, 4202, etc. (d ) In case, the case so selected is a company or a salary case, or a case when the time limit for issue of notice has elapsed the same should not be selected for scrutiny and ignored, irrespective of the fact that this may lead to reduction in the number of cases finally selected for scrutiny. (e) The final list of cases so selected shall be certified by the CCIT concerned before the same is sent to the Assessing Officer for further action. ( f ) The final list of cases so selected for scrutiny shall be segregated Assessing Officer-wise by the O/o CIT concerned before the same is sent to the Assessing Officer for issue of notices and further necessary action. ( g ) The above process must be completed by 31st October, 2003. 4. These Instructions may be brought to the notice of all concerned. Encl: Annexure Commissioner, income-tax should log on to ITD Application and follow the instructions as below : 1.Go to AST Menu 2. Go to Query menu - Option - Selection of cases for scrutiny income details. 3. Enter 2002-03 - against assessment year 4. Click on icon - Executive Query (or Press F8) This will display list of cases selected for scrutiny as per the criteria mentioned in the instruction. Press "Generate Report" button to print the above list.