CBDT vide letter dated 11-07-2016 has provided three revised format of issuing notices u/s 143(2). 1. Limited Scrutiny 2. Complete Scrutiny 3. Mannual Scrutiny

CBDT vide letter dated 11-07-2016 has provided three revised format of issuing notices u/s 143(2). 1.       Limited Scrutiny 2.       Complete Scrutiny 3.       Mannual Scrutiny In Limited Scrutiny, issues identified for examination to be specified. Notice for Complete scrutiny shall specify that case is selected for complete scrutiny. In case of manual scrutiny, specific parameter for selection of case along with reference to manual instruction no. of compulsory scrutiny guidelines shall be given. Assessee is required to produce evidence in support of his return or if assesse wishes to send no evidence, he may send his communication to AO. If on the basis of response of assesse, any adverse view is contemplated, show cause notice/questionnaire shall be given . In case of Ahemadabad, Bengluru, Chennai, Delhi , Hyderabad , Kolkatta and  Mumbai, it is to be stated in notice that email based assessment is proposed to be made. Email id provided by assesse in return or alternate id provided by the assesse shall be used for the purpose. Assessees not wishing to opt for email based assessment may convey refusal to AO. Subsequent withdrawl from email based assessment is possible only with prior permission of AO. Also in Instruction No. 20/2015 dated 29-12-2015, CBDT had mentioned that AO to provide reasons for scrutiny in cases which have been selected on the parameter(s) of AIR/CIB/26AS data . Further Specific issue based enquiry is to be conducted only in those scrutiny cases which have been selected on the parameter(s) of AIR/CIB/26AS data. In such cases, the Assessing Officer, shall also confine the Questionnaire only to the specific issues pertaining to AIR/CIB/26AS data Regards Ca Vinamar Gupta

Compulsory Manual Scrutiny Plan for 2013-14 Instructions dated 05-08-2013

1. Cases where value of International Transaction exceeds 15 crores
2. Cases where addition made on transfer pricing issue in earlier assessment year is more than 10 crores and matter is either confirmed in the appeal or is pending before an appellate authority
3. Cases involving addition in earlier assessment year in excess of 10 lacs on substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

AIR Information Case onus does not completely shift to the assessee

Just because an AIR indicating the PAN of assessee, the onus does not shift completely to assessee. Provision of section 69 couldn't be applied if assessee claims that the entries in AIR represent sale transactions, and the AO fails to prove otherwise
[2012] 27 taxmann.com 321 (Mumbai - Trib.)
Threadneedle Investment Fund ICVC Asia Fund NOVEMBER 27, 2012

Quality of Scrutiny Assessment to be improved

IMPROVING QUALITY OF SCRUTINY ASSESSMENTS - CENTRAL ACTION PLAN ('CAP') FOR FINANCIAL YEAR 2012-13

LETTER DO F.NO. 225/97/2012/ITA.II, DATED 25-9-2012

As you are aware, the CBDT has laid special emphasis in the CAP 2012-13 for improving the quality of assessments. In this regard, a strategy has been mentioned at Annexure-II (pgs. 38-43) of CAP Document.

2. The then Member (IT) had asked the Chief-Commissioners of Income-tax ('CCsIT') to send list of top 100 quality assessments in respective charges. This direction of Member was not complied with by many of CCsIT which has been viewed seriously by the Board. It is expected from the field-formation that in future the directions of the Board will not be ignored.

3. Some CCsIT have forwarded the list in mechanical manner without bringing out the quality aspect of the assessments. The analysis of the information supplied to the Board shows that the quality of assessments in the FY 2011-12 has been far from satisfactory in majority of cases.

4. The CCsIT are therefore requested to sensitize the Assessing Officers in their Region to pay focused attention towards the pending assessments to be completed till March, 2013. The strategy mentioned in CAP document should be followed by each Assessing Officer to bring out the quality in assessments. The steps suggested in the guidelines for scrutiny cases should also be scrupulously adhered to.

I am confident that if proper attention is paid to this aspect of work at this stage it will help not only in improving quality of assessments but also in augmenting the post assessment tax revenues.