LIMITED SCRUTINY – (INCOME TAX) A better initiative for both Assessee & Income Tax Department

Banking News Taxation

Business Mantra News : Faridabad

Presently selection of cases for security by Income Tax department is mainly under CASS (Computer Aided Scrutiny Selection). These cases are generally selected on basis of AIR (Automatic Information Reports ) ,CIB (Centeral   Information Branch) Information or 26AS mismatching.

Even though cases were being selected based, on particular information and for a particular purpose but CBDT (Centeral Board Of Direct Taxes), noticed that some of the Assessing Officers (A.O.) were calling all type of the routine information, which were not related to the concerned issue. It was detrimental to the interest of both Tax Payers and the department.

On one hand taxpayer were feeling harassed in giving information for all transactions during the year and while on the other hand, time and energy of the department was wasted on irrelevant issues also and some times in the process of verifying all the information, the Assessing Officers usually got distracted from investigating the core issue properly.

Regarding cases selected under CASS, notice for scrutiny selection is issued with the following remark:

“Selected under Computer Aided Scrutiny Selection (CASS)’’.

Now for Cases selected on the basis of AIR/CIB or 26AS information – mismatch, the reason for selection in Scrutiny will also have to be given along with CASS remark.

If AO makes a view that in some particular case, comprehensive scrutiny is required, with the approval of Pr. CIT/DIT, the case may be taken for Comprehensive Scrutiny and all the information may be called up by A.O.

This limited Scrutiny Concept is a good initiative and is being seen as a step towards positive reform in Departmental working and also good for assessee.

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