TaxTMI 
TaxTMI 
2019 (2) TMI 1748
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....ed on 30.09.2015 declaring loss of Rs. 4.11 crores. Return was selected for scrutiny assessment through CASS. The limited scrutiny was in respect of : (i) higher turnover returned in Service Tax Return as compared to ITR, and (ii) mismatch in profit before tax as per profit and loss account and schedule BP of return [Verification of MAT liability] 5. The assessee was asked to explain its case on the two issues, verification of which required the scrutiny assessment. The assessee filed a detailed reply explaining the issues and the Assessing Officer was satisfied with the reply of the assessee. However, while completing the assessment, the Assessing Officer made the following additions : (i) Interest Rs. 65,12,658/- (ii) Advertisement Rs. 13,21,318/- (iii) Brokerage & Commission Rs. 98,41,188/- (iv) Legal and Professional charges Rs. 37,53,220/- 6. The assessee strongly objected to the assessment so made before the ld. CIT(A) and vehemently contended that since the return was selected for scrutiny assessment for limited scrutiny which issues were adequately explained and replied, there was no room and scope for traversing beyond ....
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....rn of income on 27/09/2016 at.11:42 AM in the office, of the undersigned. 3. Sending a communication to the undersigned in this regard shall also be treated as sufficient compliance incase no evidence is sought to be produced as-required in Para 2 above. 4. Specific questionnaire/ show-cause notice shall-be sent giving you another opportunity in case any adverse view is contemplated. 5. (#) The assessment proceeding in your case is proposed to be conducted through email based communication. The email provided in the said return of income shall be used for communication for this purpose, in case you wish to communicate through any other alternate email, the same may kindly be informed. A brief note regarding benefits of this facility and procedure is. enclosed overleaf. In case you do not wish to participate in this taxpayer friendly initiative, you may convey your refusal to tine undersigned by the above mentioned date. In case, you wish to opt out from this scheme at any subsequent stage due to any technical difficulties faced by you, the same can be done with prior intimation to the undersigned. (#) applicable only in case of taxpayers whose In....
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....erned have duly been intimated about their cases falling either in 'Limited Scrutiny' or 'Complete Scrutiny' through notices issued under section 143(2) of the Income-tax Act, 1961 ('Act'). The procedure for handling 'Limited Scrutiny' cases shall be as under: a. In 'Limited Scrutiny' cases, the reasons/issues shall be forthwith communicated to the assessee concerned. b. The Questionnaire under section 142 (1) of the Act in 'Limited Scrutiny' cases shall remain confined only to the specific reasons/issues for which case has been picked up for scrutiny. Further, the scope of enquiry shall be restricted to the 'Limited Scrutiny' issues. c. These cases shall be completed expeditiously in a limited number of hearings. d. During the course of assessment proceedings in 'Limited Scrutiny' cases, if it comes to the notice of the Assessing Officer that there is potential escapement of income exceeding Rs. five lakhs (for metro charges, the monetary limit shall be Rs. ten lakhs) requiring substantial verification on any other issue(s), then, the case may be taken up for 'Complete Scrutiny' with the approval of the Pr. CIT/CIT concerned. However, such an ap....
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....scrutiny assessment proceedings some of the AOs are routinely cal 'rig for information which is not relevant, for enquiry into the issues to be considered. This has been causing undue harassment to the taxpayers and has also drawn adverse criticism from several quarters. Further, feedback and analysis of such orders indicates that many times the core issues, which formed the basis of selection of the case for scrutiny were not examined properly. Such instances primarily occurred in cases selected for scrutiny under Computer Aided Scrutiny Selection ('CASS') for verification of specific information obtained from third party sources which apparently did not match with the details submitted by the tax aver in the return of-income. 2. Therefore, for proper administration of the Income-tax Act, 1961 ('Act'), Central Board of Direct Taxes, by virtue of its powers under sect on 119 of the Act, in supersession of earlier instructions/guidelines on this subject, hereby directs that the cases selected for scrutiny during the Financial Year 2014-20(15 under CASS, on the basis of either AIR data or CIB information or for non re-conciliation with 26AS data the scope....