Mandatory Manual Income Tax Scrutiny Criteria F.Y. 2013-14

The Board via INSTRUCTION NO 10/2013 declared the manual selection criteria for Income Tax Scrutiny for the financial year 2013-2014.

The Central Action Plan for F.Y.2013-2014 was used to set targets for scrutiny assessments. This document also carried the quality assessment instructions that must be observed All the cases selected for scrutiny via the random selection method or through the manual selection method will be accomplished only through AST software.

The criterion for manual selection of cases for Compulsory Income Tax Scrutiny for Financial year 2013-2014 shall be as follows:

*Any cases that have appeal may be pending at appellate authority end or may be a confirmed one

1. Cases that involve any international transactions (under section 92B of the Income Tax Act) worth 15 Crore and above
2. Cases that involved transactions on issue related to transfer price worth 10 Crore and above during assessment year 2013-2014. *
3. Those cases that have occurrence of Rs. 10 Lacs on a substantial and recurring question of law or fact *
4. Each case related to Survey (u/s 133A of the Income Tax Act) except those where no accounting documents or books were ceased and the income in return (excluding any disclosures given during Survey) does not have less income than the filled income of Assessment year 2013-2014. The cases where the disclosures made during survey are withdrawn at a later stage will not be subject to inclusion in the tax scrutiny.
5. Any cases that involved impounding or search under sec 153A, 153C, 158B, 158BD and 158BC understood in association sec 143(3) of the Income Tax Act.
6. The returns that had been filed after receiving notice from the IT Department under section 147 or sec 148
7. The assessees who have filled exemption from tax under section 11 or under section 10(23C) and are subject to proviso(s) under Section 2(15) of the Income Tax Act
8. Firms/Companies/Organizations that received overseas donation under FCRA (Foreign Contribution Regulation Act)over INR 1 Crore during assessment year 2012-13. The information is available at website of Ministry of home affairs. The information may be downloaded from the site and distributed to the respective officers of the relative jurisdictions by Directors – General of Income-tax or Cadre-Controlling chief Commissioners
9. The cases that have been reported by the any other Government authorities or any other government departments about the tax evasion on approval of  jurisdictional CCIT/DGIT shall be scrutinized.

CCIT/DGIT should process a more advanced mechanism to monitor the quality assessment. A report shall be submitted to respective Zonal Member involving a minimum of 50 charges pertaining to quality assessments. This formality shall be completed by 30th April, 2014 and a copy of the same must be provided to the Member (IT) with suggestions.

CCsIT/DGsIT would further ensure that cases selected for publication in ‘let us share’ are picked up from quality assessments as reported.