Selection of cases for sample scrutiny. - Income Tax - 1619/CBDT

INSTRUCTION NO. 1619/CBDT Dated: June 3, 1985 Instructions have been issued by the Board from time to time of cases for sample scrutiny. It has now been decided by the board, that in supersession of all the earlier instruction on the subject, following procedure would be adopted in this respect with immediate effect:- i) 5% of the cases where assessments are completed in a summary manner will be taken up for scrutiny on a random sample basis. The Commissioner will lay down a random number and the cases would be selected for sample scrutiny on the basis of this random number, out of the cases completed u/s.143(1) in the preceeding year. For example if the random number allotted by the C.I.T. is 16 then the cases at sr.Nos.16,36,56 and so on, of the above cases will be taken up for scrutiny; ii) The cases for sample scrutiny on the above basis should be decided in the month of August; iii)List of these cases will be made and maintained both by the I.T.O. as well as the I.A.C. concerned; iv) The Commissioners of Income-tax should furnish certificates to the Director of Organisation Management Services(I.T) by 15th September that lists of the cases for scrutiny assessments in this manner, have been prepared; v) A folder for each of the cases selected for scrutiny will be maintained irrespective of the fact whether the return has been received or not. The fact that the case has been selected for assessment after a scrutiny should be marked by a rubber stamp on the folder, the order-sheet and on the return of income for the relevant assessment year, which should read selected for sample scrutiny. The ITO should also put his initials below such stamp on the return. vi) Some of these cases should invariably be chosen by the IACs for their annual inspection and vii) The Inspection Division of the board would also verify during their tours whether the work of sample scrutiny has been properly attended to and submitted its report to the Board for necessary action. 2. These instructions may be brought to the notice of all the officers working in your charge.