Limited scrutiny framework for income tax returns narrows review to legal issues while reserving complex matters for investigation. A three tier procedure requires initial processing with prima facie adjustments, segregation of returns into Investigation for in depth scrutiny and Limited Scrutiny for legal issues or limited factual variations. Returns must be linked with past records at processing to identify limited scrutiny cases; Assessing Officers must issue notices and show cause letters, endorse copies to supervisory officers, and pass assessment orders after opportunity. Permissible limited scrutiny adjustments are listed in an annexure; complex or numerous matters must be escalated to Investigation and residuary adjustments require prior superior approval.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Limited scrutiny framework for income tax returns narrows review to legal issues while reserving complex matters for investigation.
A three tier procedure requires initial processing with prima facie adjustments, segregation of returns into Investigation for in depth scrutiny and Limited Scrutiny for legal issues or limited factual variations. Returns must be linked with past records at processing to identify limited scrutiny cases; Assessing Officers must issue notices and show cause letters, endorse copies to supervisory officers, and pass assessment orders after opportunity. Permissible limited scrutiny adjustments are listed in an annexure; complex or numerous matters must be escalated to Investigation and residuary adjustments require prior superior approval.
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