Sample Scrutiny. - Income Tax - 1541/CBDT

INSTRUCTION NO. 1541/CBDT Dated: December 1, 1983 Section(s) Referred: 143(3) Statute: Income - Tax Act, 1961 Attention is invited to the procedure for Sample Scrutiny as given in detail in Chapter III of the booklet, "Income-tax Summary Assessment Scheme" issued by D.I. (RS PR) in March, 1981. Attention is also invited to Board's instruction No.1508 dated the 13th May, 1983 wherein the percentage for selection of cases for Scrutiny though random sampling was laid down as under:- i) 1% of the cases with income below Rs.25,000, ii) 5% of the cases with income between Rs.25,001 and Rs.50,000; iii) 20% of the cases with income between Rs.50,001 and Rs.1,00,000; iv) 5% of the new cases with income upto Rs.25,000 2. This matter has been further examined and it has been decided that the following procedure may now be adopted for selecting the cases for random scrutiny. 3. For selecting the random number for cases mentioned in category (iii) in para 1 above, the Commissioner will prepare 5 identical slips numbered from 1 to 5. These five slips, identically folded, will be put inside a container and one of them will be taken out as in the case of a lottery. The number contained in the selected slip will be the random start for cases falling in category (iii). Likewise, for category (ii), 10 slips with numbers 1 to 10, will be used to select the random start for that category and, for cases coming under category (i), there will be 50 slips numbered to 50 and the single slip drawn will give the random start for this category. Similar will be position in respect of cases mentioned in category (iv) above, where 20 slips will be put in the container and one will be taken. 4. The above procedure will be applicable for the whole charge and these instructions will be effective from the financial year 1984-85. It is also desired that this job should positively be completed by 15th July of the year and the statement, as desired in Instruction No.1508, should be sent well within time. 5. The instructions may please be brought to the officers working under you.