Monday, September 29, 2014

CBDT directs AO to enquiry into only AIR data or 26AS mismatch issues if scrutiny is made on this basis

It has been brought to the notice of CBDT that during assessment proceedings, the Assessing Officers were routinely calling for information, which was not relevant for inquiry into the issues. This practice of AOs is causing undue harassment to taxpayers. Many times the core issues, which formed the basis of selection of the case for scrutiny, were not examined properly.

Therefore, the CBDT directs that the scope of enquiry of AO should be restricted to verification of either AIR data or Credit Information Bureau (CIB) information or 26AS mismatch issues if:

a)Cases has been selected for scrutiny during the Financial Year 2014-15 under Computer Aided Scrutiny Selection (‘CASS’);and

b)Selection has been made on the basis of either AIR data or CIB information or for non-reconciliation with 26AS data.

However, the cases may be taken up for comprehensive scrutiny with the approval of concerned Principal CIT or Principal DIT if following conditions are satisfied:

a)If it is found that there is potential escapement of income exceeding Rs 10 lakhs (for non-metro cities (sic), the monetary limit shall be Rs 5 lakhs); and

b)Escapement of income is found on any other issue(s) apart from the AIR/CIB/26AS information based on which the cases were selected under CASS requiring substantial verification.