Procedure or random selection of cases for scrutiny and its follow-up action. - Income Tax - 1508/CBDT

INSTRUCTION NO. 1508/CBDT Dated: May 13, 1983 Section(s) Referred: 143(1) Statute: Income - Tax Act, 1961 Attention is invited to Board's Instructions No. 1381, dated the 5th February, 1981 (F. No. 201/159/80-ITA-II), wherein procedure has been laid down for random selection of cases for scrutiny and its follow-up action. The Board had occasion to re-examine this matter and the existing instructions may be treated to be modified to the extent mentioned hereunder. 2. It has now been decided that the percentage of selection of cases for scrutiny through random sampling should be as under :- (i) I per cent of the cases with income below Rs. 25,000; (ii) 5 per cent of the cases with income between Rs. 25,001 and Rs. 50,000 and, (iii) 20 per cent of the cases with income between Rs. 50,001 and Rs. 1 lakh. However in respect of new cases (either detected in survey or on account of voluntary returns filed) upto returned income of Rs. 25,000, where assessments have to be completed in a summary manner, a large percentage of 5 per cent has to be selected for scrutiny. 3. The selection of cases for random scrutiny will be made by the Inspecting Assistant Commissioner himself and he would be personally responsible for ensuring this. Guidelines regarding the manner in which the selection of cases has to be done and the follow-up action, have already been laid down in detail in Instructions No. 1381, dated the 5th February, 1981, which have to be strictly followed. 4. The Board have noticed with concern that in some of the Commissioner' charges, the existing instructions regarding random selection of cases and its follow-up is not being followed by the field formations. In some charges, the Inspecting Assistant Commissioners had not even given the random selection number to the ITOs. It is, therefore, desired that the Commissioners should give their personal attention to this matter and ensure that sampling system is followed in their charges strictly. They should also send a report to the Board by the 15th of August every year indicating the number of cases selected for scrutiny on the basis of random selection. 5. The above instructions may please be brought to the notice of all the officer working in your charge.