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TMI BlogParameters for selection of cases for scrutiny during the financial year 1996-97.X X X X Extracts X X X X X X X X Extracts X X X X ..... ssments involving survey u/s. 133A; iii) all reassessments u/s.147 set aside assessments and assessments requiring compulsory scrutiny u/s. 44AD or 44AE of the Act; iv) any other assessment where scrutiny is recommended by the Investigation wing based on information in their possession; v) cases of assessees having turnover in excess of Rs. 25 crores in other CCIT Regions; vi) Company cases where total income as returned by the assessee is less than 50% of 'book profit' subject to a minimum variation of Rs.10 lakhs. NOTE: For the purpose of this clause 'book profit' would mean the net profit as shown in the profit and loss account of the relevant previous year prepared in accordance with the Companies Act, 1956; vii) cases where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I) dated 17.5.96. The Board desires that all the returns received for Assessment Year 1995-96 as also the returns received for Assessment Year 1996-97 may be processed for limited scrutiny. 2. Following categories of cases falling in Class 'B' (Sample Scrutiny cases ) shall not be picked up for scrutiny: i) all cases of individual residents with returned income of Rs.1.20 lakhs or less where such income does not include income from business or profession and also there is no b/f and c/f loss (other than c/f loss from house property); ii) all other cases covered by CBDT Instructions No.1932 F.no.225/125/94/ITA.II dated 27.10.95 in respect of cases covered u/s 44AD(1) and 44AE (1) and (2) and Instructions No.1935 (F.No.225/62/96/ITA.II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that Ward. Thus, if the selected number for example is 12 then 12th, 45th, 78th, 111th etc., returns of that Ward will be chosen for scrutiny. 4. The Chief Commissioner/Director General should ensure that there is an even distribution of work in different assessment units, However, if it is found that the workload of any Assessing Officer is either very high or very low, the percentage mentioned for selection of cases for sample scrutiny may be suitably varied by the Chief Commissioner of Income Tax. 5. Procedure for selection of cases for scrutiny in respect of cases of religious and charitable trusts and cases assessed in Central Charges is being prescribed separately by the Board. 6. Board has also decided that the non-filers of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lised or claimed as revenue expenses. ii) Incorrect claim of relief under chapter VI-A. iii)Incorrect computation of deduction u/s.32, 35(1), 35AC, 35 CCA, 35 CCB etc., iv) Recomputation of correct 'gross total income' u/s.80-A and total income u/s.80 AB. II. Factual additions to be made on the basis of information available on record. Illustration: (i) Under valuation of closing stock not including excise, import duty component in respect of raw material. (ii) Excise duty not included in the turnover. (iii)Central tax dues such as excise, central sales tax of earlier years paid during this year. (iv) Verification of TDS receipt reveal more than what is disclosed in the return. III. Any addition/disallowance which is requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auditors report but cannot be made under the provisions of section 143(1)(a). VIII. Claims of treating the income as exempt, but which according to the revenue are not exempt. Illustration: 1. Certain types of subsidies claimed as exempt. 2. Cess or tax collected but not paid. IX. The issue considered in the order u/s.263 by CIT in respect of preceding assessment years or issues based on major audit objections accepted by the Department and remedial action taken. X. Verification of CIB information(however if the number of transactions reported by CIB are many, the case may be examined from the point of view of taking up for 'Investigation)', XI. Any other issue to be taken up with prior approval of DCIT/Addl.CIT/CIT. - Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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