Procedure of E-assessment or Paperless Assessment proceedings

As a part of e-governance initiative to facilitate compliance, a taxpayer friendly measure in the form of a scheme for E assessment through e-mail has been introduced in seven cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai.

Income tax department has already started seeking consent for use of email based communication for paperless assessment proceeding for AY 2014-15 and AY 2015-16.
Under e-asseement scheme, statutory notice calling for information would be served upon through email. Similarly assessee or his authorised representative can also submit your clarification/ evidence ets to assessing officer through email. On conclusion of scrutiny proceedings assessment would also be sent to you through email.

The prime objective of this scheme is to eliminate the need to visit the income tax office. If you give consent for E Assessment, the department would not insist on your personal appearance for such proceedings. However, you always retain the option to appear personally or through authorised representative if you so desire at any stage of the proceedings.

Presently e-assessment is applicable only in case of taxpayers whose Income-tax jurisdiction falls in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata or Mumbai

Advantage of opting e-assessment or Paperless assessment
• It will not only save precious time of the taxpayer but also provide a 24/7 anytime/anywhere convenience to submit a response to the queries of the Department under scrutiny proceedings.
• It Facilitate a simple way for communication between the department and the taxpayer through electronic means without the necessity to visit the Income Tax Office.
• It will reduce compliance burden on tax payers.
• Taxpayer can track complete information of all the e-submissions made during the course of assessment proceedings
• The taxpayer can at any time at his discretion opt out of this scheme with prior intimation to the assessing officer

Step by Step procedure on e-assessment or Paperless assessment:
• Income Tax Officer will send email the signed and scanned copy of notice under section 143(2) of Income tax Act 1961 in pdf format using his designated email address (official email address under the domain @incometax.gov.in).
• Notice received under section 143(2) clearly mention nature of scrutiny as “Limited Scrutiny”, “Complete Scrutiny” along with issues identified for examination ie. Reason for selection of Assessing Officer will have detailed description related to the case collected from AIR, CIB and other sources.
• The email will be sent to the taxpayer’s email address as provided in his/ her income-tax return of the relevant tax year or in the last income tax return furnished. In case, taxpayer wish to communicate through any other alternative email id, the same may be informed to officer.
• Along with notice u/s 143(2) or separately, Income tax officer will send Email letter seeking consent for use of email based communication of paperless assessment proceedings.
• Based on detailed information available with the assessing officer, further communication in the form of notice under section 142(1) of the Income Tax Act, 1961 will be sent with detailed questionnaire in PDF format requiring taxpayer to submit specified documents in the notice.
• Response should be submitted in PDF format as attachments and the size of attachments in a single email cannot exceed 10MB.
• In case total size of the attachments exceeds 10 MB then the tax payer shall split the attachment and send in as many emails as may be required to adhere to the limit of the attachment size of 10MB per mail.
• If tax payer fails to respond to the notice mentioned earlier, reminder notice will be sent under section 142(1) of income tax act. Showcase notice will be sent giving final opportunity in case any adverse view is contemplated.
• All emails sent or received will be displayed on the assesses “My account” on the e-fling portal incometaxindiaefling.gov.in which can be accessed by the taxpayer after login.
• The submission of the above documents by email will be treated as compliance of the notice received under section 142(1) of income tax Act.
• All email communications between the tax officer and taxpayer shall also be copied to e-assessment@incometax. gov.in for audit trail purposes.
• Once the scrutiny is completed, the tax officer shall pass the Assessment Order under section 143(3) of Income Tax Act and email it in PDF format to the taxpayer.

Source : Simplifiedlaws

Scrutiny assessment should not be source of harassment

Many Assessees & Tax consultants thank that scrutiny assessment proceedings are big source of harassment. They think that hardly any change in attitude of most of Assessing Officers. This is evident from fact that major demands raised in scrutiny assessments get vacated in first and second appeal.

Pressing for payment of demand:
pressing for collection of demand even when first appeal is pending and relief is likely to be allowed in view of settled legal position and favourable precedence having binding nature.

Un-necessary requisitions and calling of information:
Tendency of calling for information which are already available to the AO on a click of mouse still continues and the AO asks assessee to furnish printed copy of return- ITR filed by assessee online, details of business, directors, partners, computation etc. which are already found in the ROI and other documents submitted by assessee. In requisitions , many documents and explanations are required which are not at all required, not applicable and cannot be asked in terms of instructions issued by CBDT.

Tendency of unsettling settled legal position continue:
Tendency of not following binding precedence has not changed amongst many of tax officers. Many has tendency of unsettling settled things just by mentioning the revenue has not accepted appellate order or facts. Many amendments have been inserted just to unsettle settled legal position, even ignoring or not caring about legality of such new provisions.

Srutiny selection under CASS:
From time to time the CBDT have issued Circulars to the effect that in case of cases selected by CASS based on certain information or certain parameters the scope of enquiry must be restricted and variation in income must also be restricted in respect of specific items for which selection of case has been made for scrutiny. In case of unlimited scrutiny cases, or in cases where AO consider that case require deep inquiry to unearth tax evasion exceeding certain limits, then with approval of specified senior authorities more detailed enquiry can be made.

Instructions are not followed by many AO:
Instructions of CBDT regarding scope and procedure for limited, specific issue based scrutiny and in depth scrutiny, are disobeyed by tax authorities (AO) and details enquiry are made, even in cases of selection for specified purposes.
Additions are made in complete disregard of facts and law:

In scrutiny assessment additions and disallowances are made in complete disregard of facts of case, law, binding precedence etc., just for sake of making high pitched assessment order, raising high demand and pressing assessee to pay such demands. All these are source of harassment of assessee.

Ad-hock, estimated additions and disallowances still continue:
Assessing Officers are still making ad-hock, estimated additions and disallowances without any material but just on guess, conjecture, and presumption and prejudice. This is not proper. On small additions and disallowances, many assessee do not go in for appeal due to high cost of litigation and to avoid loss of time which will be required if appeal is properly pursued, which is not possible for small sums.

Re-assessments:
Cases of issuing reassessment notices and opening assessments, have also been found for small sums when original assessment was made even under detailed scrutiny or as per instructions of CBDT. Many notices for reassessment with likely tax effect of petty sums (not exceeding Rs. One lakh) such small cases of reassessment, revision and rectifications must be avoided.

The recent circulars issued by CBDT :
Recently Board have issue new circulars, in which earlier circular has also been referred to and adopted in some aspects. Recently Board has issued Instruction No. 19 and 20/2015. The earlier circular : Instruction No. 7/2014 dated 26.09.2014 has also been referred to therein.

Scope of Scrutiny Selection on the basis of AIR

The CBDT has given instructions to select the cases for scrutiny on the basis of some specific transactions if entered in by any person. Regarding these transaction Income Tax Department (ITD) is collecting the data from different authorities or companies through Annual Information Return (AIR). When we do some transaction over and above a limit through a Financial Year (FY), our cases can be selected for scrutiny on random basis which is done by ITD through Computer aided software system (CASS).

Vide Notification 95/2015, dated December 30, 2015, CBDT has modified the rules (i.e. Rule 114E r.w.s. 285AB) related to Filing of AIR. Now the AIR return will be called as Statement of Financial Transaction (SFT), where specified persons will be required to file the return, if the nature & class of the transaction falls into the list specified. These rules will be effective for the transactions entered on or after April 1, 2016. Gist of these transactions and respective specified person can be described as follows:

S. No. Nature and Value of Transaction
(1) (2)
1. (a) Cash deposits or cash withdrawals (including through bearer’s cheque) aggregating
to fifty lakh rupees or more in a financial year, in or from one or more current account
of a person.
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 50 lakhs
(b) Purchase of Bank Draft/pre-paid financial instruments
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
(c) One or more time deposits of a person
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
(d) Cash deposit (other than a current account and time deposit) of a person.
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
(e) Payment made for credit card
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 1 lakh in cash
and 10 lakhs any other mode
2. Receipt from any person of an amount (including share application money). However,
it doesn’t include amount received on account of renewal)
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
3. Buy back of shares (other than shared from the open market)
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
4. Receipt from any person for acquiring units
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
5. Receipt from any person for sale of foreign currency
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
6. Purchase or sale of immovable property (Value as per stamp valuation authority)
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 10 lakhs
7. Receipt of cash payment for sale of goods or services of any nature (other than mentioned
above)
= Aggregated Minimum Value of Transaction in a FY (Rupees in lakhs) – 2 lakhs
The above table shows a list of all those transactions which are required to be filed by respective reporting person in Form No. 61A with the Income Tax Department. On the basis of these details, the Income Tax Department can get select your case for the scrutiny.

Further, all of the reporting person as mentioned in Column (4) are required to file Return in Form No: 61A. If we leave the specific authorities/banks, in general this clause is applicable to companies or other person for S.No.2, 3, & 7 as mentioned above.

W.e.f. April 1, 2016 all companies will be required to collect the details to file the return in Form No: 61A if they entered in any transaction as mentioned above. The return in Form 16A is required to be filed by 31st May of the immediately following FY and the reporting person is also required to obtain the registration number from the Department.

Questions on Income tax Refunds

How will the Refund be sent to me?
As per option for mode of payment exercised by the Assessee while filing his annual income tax return (ITR 1), refund will be made either through electronic mode i.e. direct credit to account or through Refund Cheque. Tax payers are therefore, required to enter correct Account number and IFSC code along with complete address details including PIN code at the time of filing of Return.
Refunds processed through Refund cheques mode are dispatched to record address through Speed Post.

How can I know the status of my refund? Is there any method available to know whether the refund record has been generated?
Taxpayers can view status of refund by entering ‘PAN/TAN’ and ‘Assessment Year’ on the following site:
To check status of Income Tax Refunds: – https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
To check status of TDS Refunds: – https://tin.tin.nsdl.com/oltas/refundstatusloginfortan.html
For Returns filed online, status may also be sought by login to the e-filing site of ITD -https://incometaxindiaefiling.gov.in
Status may also be tracked by contacting following Toll free numbers:
1. For e-filed returns CPC Bangalore Toll free no. 1800-425-2229
2. For other returns Aayakar Sampark Kendra Toll free no. 1800-180-1961
3. SBI Contact Centre Toll free No. 1800-425-9760(Related to Banking Transactions only)

The TIN status shows that Refund had Expired.What shall I do?
Refund not presented for payment within the validity period of 90 days is marked as expired and cancelled. Tax payer may raise Refund re-issue request. In case the return was filed electronically- Refund reissue request may be raised online by login into e-filing portal i.e. https://incometaxindiaefiling.gov.in with user ID and password.
In other cases the Taxpayer should contact Assessing Officer under whose jurisdiction the Return was filed for re-initiation of Refund.

The TIN status shows that Refund had Returned.What shall I do?
It means that Refund had been returned undelivered by Speed Post. All returned Refunds are cancelled and retained at CMP Centre. Tax payer may raise Refund re-issue request. In case the return was filed electronically- Refund reissue request may be raised online by login to e-filing portal i.e. https://incometaxindiaefiling.gov.in with user ID and password. In other cases the Taxpayer should contact Assessing Officer under whose jurisdiction the Return was filed for re-initiation of Refund.

Whom do I contact if the refund dispatched has not been received?
All Refunds are dispatched through Speed Post for which Tracking number is provided in the refund status track view on TIN. The tax payer can view status of the article on India Post tracking site i.e.www.indiapost.gov.in or contact its local post office with tracking number as displayed on TIN.

How do I rectify any mistakes in the name, account number printed on the refund cheque delivered to me?
Send the original refund cheque to CMP Operations Centre, State Bank of India, Survey No.21 Opposite : Hyderabad Central University, Main Gate, Gachibowli, Hyderabad -500019 for cancellation of the Cheque (along with a letter informing the mistakes on the refund cheque) and updating cancellation status on TIN. Once the status is updated as returned, Taxpayer may contact Ward Assessing Officer for modification in Name/Account number and re-initiation of Refund.
If, however, the return was filed online, modification in account number and raising of Refund reissue request may be done online by login into e-filing portal i.e. https://incometaxindiaefiling.gov.in with user ID and password.

The TIN status shows that Refund was processed though Direct Credit mode which had failed?
It means that Refund for credit to account maintained with SBI had failed. Possible reasons may be –
1. Account had been closed.
2. Operations in the Account had been stopped /restricted /On Hold
3. The Account may be Fixed Deposit or Loan of PPF account.
4. The Account may be NRI account
5. The Account holder may be deceased.
Taxpayer should contact Assessing Officer and provide the correct account number/IFSC /MICR code where Refund is to be credited. After updating Account number/IFSC /MICR code- the Refund will be reinitiated by Assessing Officer. In case the e-filed returns – modification in account details and refund reissue request may be raised online by login into e-filing portal i.e. https://incometaxindiaefiling.gov.in with user ID and password.

The TIN status shows that Refund was processed though NECS/NEFT mode which had failed?
It means that Refund processed through NECS/NEFT mode had failed .Taxpayer should verify the Account number, Account description, MICR/IFSC code given at the time of filing of return. Taxpayer may contact Assessing Officer for modification in account details and re-issue of Refund. In case the e-filed returns – modification in account details and refund reissue request may be raised online by login into e-filing portal i.e. https://incometaxindiaefiling.gov.in with user ID and password.

I have received the ECS refund advice and TIN status of refund is “paid” but my account has not been credited?
Please check the Account number given in the ECS advice sent by CMP Centre carefully. If the Account number, IFSC/MICR code given in the advice is correct-please contact your Branch and enquire about the status of NEFT UTR Number or NECS sequence number as displayed on TIN. In case the account number given is incorrect-please check with your Bank whether the amount had been credited in wrong account. Please send an email to for guidance.

The status on TIN shows that Refund had been adjusted against outstanding demand of previous year. What does that mean?
This means Refund for the current year had been adjusted against outstanding demand of previous Assessment year either in-part of in-full. Please verify details from the ECS advice sent by SBI CMP Centre through email or post. For details of the outstanding demand may be obtained by contacting Ward Assessing Officer/CPC Bangalore. In case of e-filed returns –enquiry may be made by login into e-filing portal.

The status on TIN shows that Interest had been deducted on my Refund.
This means that TDS under Section 195 had been deducted on Interest income paid to NRIs at the time of determining refunds u/s 244A. Please contact Assessing Officer of Ward where you have filed your return / CPC Bangalore in case of return filed online, for more details.

Whom should I contact for refund related queries?
For any refund related query the tax payer should contact Aayakar Sampark Kendra Toll Free No. 1800-180-1961 or email at
For refund related query or any modification in refund record relating to return processed at CPC Bangalore may be contacted on Toll free Number 1800-425-2229 or 080-43456700.
For any payment related query the taxpayer should contact SBI Contact Centre Toll Free No. 1800-425-9760.

Why should we pay interest U/s.234A(3) ?

Often we get doubt, that once the interest U/s.234A is paid by the assessee, why should he pay again U/s.234A(3) ?

We may find answer to the question in 234A(3)(b). We are accepting the interest paid by the assessee U/s.234A. But when the income is enhanced U/s.144 or through 147, there arises additional demand over the returned income on which 234A which is already paid. We are demanding interest U/s.234A(3) on such demand being the difference between the returned income and Assessed income U/s.144 or 147.

Section 234A(3) in The Income- Tax Act, 1961

(3) Where the return of income for any assessment year, required by a notice under section 148 issued after the determination of income under sub- section (1) of section 143 or] after the completion of an assessment under sub- section (3) of section 143 or section 144 or section 147, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent, for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,-

(a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or

(b) where no return has been furnished, ending on the date of completion of the re- assessment or re- computation under section 147, on the amount by which the tax on the total income determined on the basis of such re- assessment or re- computation exceeds the tax on the total income determined under sub- section (1) of section 143 or] on the basis of the earlier assessment aforesaid. 3 (Explanation.-]

Section 234A of the Act makes the default of an assessee in filing or filing on the due date, his return of income under section 139(1) or section 139(4) or in response to a notice under section 142(1), the foundation for the levy of interest. The power to levy a tax, and to prescribe the mode and the machinery for the recovery of the same would of necessity include even the power to levy interest on the commission of a default by the assessee liable to pay the principal levy. The amount, at which such interest is payable, is also more than clearly discernible from the provisions of the section itself. It is the amount of tax on the total income as determined under section 143(1) of the Act or on regular assessment reduced by the advance tax, if any paid and any tax deducted or collected at source. In other words, the amount on which the interest is calculated is the amount payable by the assessee towards tax, less the amount already paid by him. This means that the amount of tax which ought to have been paid by the assessee but was not paid because of the non-filing or the delayed filing of the return, becomes the principal amount for the purposes of calculation of the assessee’s liability on account of interest. Then comes the period for which the interest liability is imposed. In terms of section 234A(1) (a) and (b), the period for which the interest liability is calculated is the period between the date on which return was due to be filed and ending on the date the same is actually furnished and where no return is furnished ending on the date of the completion of the assessment under section 144 of the Act. So also, the period for which interest is calculated under section 234A(3) is the period commencing on the day immediately following the expiry of the time allowed to the assessee under the notice referred to in the said provision and ending on the date of furnishing the return or where no return is furnished ending on the date of completion of the reassessment or recomputation under section 147 of the Act, on the amount by which the tax on the total income determined on the basis of such reassessment or recomputation exceeds the tax on the total amount determined under section 143(1) or on the basis of the earlier assessment.

It is, therefore, fairly manifest that the amount on which the interest is levied, is the amount, which can legitimately be said to be public revenue though payable by the assessee, but not paid by him. Levy of interest on such amount which an assessee withholds and makes use of cannot be said to be anything but a compensatory measure, meant to offset the loss or prejudice which the Revenue suffers on account of the non-payment of the said amount. This is particularly so when we find that the period for which the levy is made does not have an element of penalty in the same. The period for which this additional liability is imposed is an important feature which very clearly gives out the true legislative intent, behind the levy. The period, it is apparent, is so fixed as to make section 234A a pure and simple compensatory provision. Levy of interest for the period between the due date and the date on which the return is furnished can by no means be a penal provision nor can such a levy up to the date of assessment under section 144 be deemed to be penal, in cases, where the assessee does not even furnish a return despite a notice issued to him to do so. This is true even in cases covered by section 234A(3), where too the amount on which the interest is calculated and the period for which the same is levied, do not have the flavour of a penal provision and are strongly suggestive of the levy being compensatory in character.

Assessment under section 144

Assessment under section 144

This is an assessment carried out as per the best judgment of the Assessing Officer on the basis of all relevant material he has gathered.

This assessment is carried out in cases where the taxpayer fails to comply with the requirements specified in section 144.

Scope of assessment under section 144

As per section 144, the Assessing Officer is under an obligation to make an assessment to the best of his judgment in the following cases:-

• If the taxpayer fails to file the return required within the due date prescribed under section 139(1) or a belated return under section 139(4) or a revised return under section 139(5).

• If the taxpayer fails to comply with all the terms of a notice issued under section 142(1). Note: The Assessing Officer can issue notice under section 142(1) asking the taxpayer to file the return of income if he has not filed the return of income or to produce or cause to be produced such accounts or documents as he may require and to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the taxpayer, whether included in the accounts or not) as he may require.

• If the taxpayer fails to comply with the directions issued under section 142(2A). Note : Section 142(2A) deals with special audit. As per section 142(2A), if the conditions justifying special audit as given in section 142(2A) are satisfied, then the Assessing Officer will direct the taxpayer to get his accounts audited from a chartered accountant nominated by the principal chief commissioner or Chief Commissioner or Principal Commissioner or Commissioner and to furnish a report of such audit in the prescribed form. [As amended by Finance Act, 2015]

• If after filing the return of income the taxpayer fails to comply with all the terms of a notice issued under section 143(2), i.e., notice of scrutiny assessment.

• If the assessing officer is not satisfied about the correctness or the completeness of the accounts of the taxpayer or if no method of accounting has been regularly employed by the taxpayer. From the above criteria, it can be observed that best judgment assessment is resorted to in cases where the return of income is not filed by the taxpayer or if there is no cooperation by the taxpayer in terms of furnishing information / explanation related to his tax assessment or if books of accounts of taxpayer are not reliable or are incomplete. Procedure of assessment under section 144

• If the conditions given above calling for best judgment are satisfied, then the Assessing Officer will serve a notice on the taxpayer to show cause why the assessment should not be completed to the best of his judgment.

• No notice as given above is required in a case where a notice under section 142(1) has been issued prior to the making of an assessment under section 144.

• If the Assessing Officer is not satisfied by the arguments of the taxpayer and he has reason to believe that the case demands a best judgment, then he will proceed to carry out the assessment to the best of his knowledge.

• If the criteria of the best judgment assessment are satisfied, then after taking into account all relevant materials which the Assessing Officer has gathered, and after giving the taxpayer an opportunity of being heard, the Assessing Officer shall make the assessment of the total income or loss to the best of his knowledge/judgment and determine the sum payable by the taxpayer on the basis of such assessment.

Time-Limit As per section 153

Assessment under section 144 shall be made within a period of two years from the end of the relevant assessment year.

Conversion of Limited Income Tax Scrutiny to Complete Scrutiny

Instruction No. 5/2016

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi, the 14th of July, 2016

Subject: Direction regarding scope of enquiry in cases under ‘Limited Scrutiny’ selected through CASS 2015 & 2016-regd.-

Vide Instruction No. 20/2015 dated 29.12.2015 in File of even number, Board has laid down Standard Operating Procedure for handling of cases under ‘Limited Scrutiny’ which were selected through Computer Aided Scrutiny Selection in ‘CASS Cycle 2015’. In these cases, it was stated that the general scope of enquiry in scrutiny proceedings should be restricted to the relevant parameters which formed the basis for selecting the case for scrutiny. However, in revenue potential cases, it was further provided that ‘Complete Scrutiny’ could be conducted, if there was potential escapement of income above a prescribed monetary limit, subject to the approval of administrative Pr. CIT/CIT/Pr. DIT/DIT.

2. In order to ensure that maximum objectivity is maintained in converting a case falling under ‘Limited Scrutiny’ into a ‘Complete Scrutiny’ case, the matter has been further examined and in partial modification to Para 3(d) of the earlier order dated 29.12.2015, Board hereby lays down that while proposing to take up ‘Complete Scrutiny’ in a case which was originally earmarked for ‘Limited Scrutiny’, the Assessing Officer (‘AO’) shall be required to form a reasonable view that there is possibility of under assessment of income if the case is not examined under ‘Complete Scrutiny’. In this regard, the monetary limits and requirement of administrative approval from Pr. CIT/CIT/Pr. DIT/DIT, as prescribed in Para 3(d) of earlier Instruction dated 29.12.2015, shall continue to remain applicable.

3. Further, while forming the reasonable view, the Assessing Officer would ensure that:
a. there exists credible material or information available on record for forming such view;
b. this reasonable view should not be based on mere suspicion, conjecture or unreliable source; and
c. there must be a direct nexus between the available material and formation of such view.

4. It is further clarified that in cases under ‘Limited Scrutiny’, the scrutiny assessment proceedings would initially be confined only to issues under ‘Limited Scrutiny’ and questionnaires, enquiry, investigation etc. would be restricted to such issues. Only upon conversion of case to ‘Complete Scrutiny’ after following the procedure outlined above, the AO may examine the additional issues besides the issue(s) involved in ‘Limited Scrutiny’. The AO shall also expeditiously intimate the taxpayer concerned regarding conducting ‘Complete Scrutiny’ in such cases.

5. It is also clarified that once a case has been converted to ‘Complete Scrutiny’, the AO can deal with any issue emerging from ongoing scrutiny proceedings notwithstanding the fact that the reason for such issue have not been included in the Note.

6. To ensure proper monitoring in cases which have been converted from ‘Limited Scrutiny’ to ‘Complete Scrutiny’, it is suggested, that provisions of section 144A of the Act may be invoked in suitable cases. To prevent possibility of fishing and roving enquiries in such cases, it is desirable that these cases should invariably be picked up while conducting Review or Inspection by the administrative authorities.

7. The above Instruction shall be applicable from the date of its issue and would cover the cases selected under CASS 2015 which are pending scrutiny cases as well as cases selected/being selected under the CASS 2016.

8. The contents of this Instruction may be brought to the notice of all for necessary compliance.

9. Hindi version to follow.

(Rohit Garg)
Deputy Secretary to the Government of India
(F.No. 225/269/2015-ITA.11)
Copy to:
1. Chairman and all Members of CBDT
2. PPS to Secretary (Revenue)
3. 0/o Pr.Director General of Income Tax (Systems) with request for uploading on official website in public domain
4. All Pr.Chief-Commissioners/Directors-General of Income-tax
5. All Officers and Technical Sections of CBDT
6. ITCC Division of CBDT (3 copies)
7. Addl. /Jt. CIT Database Cell for uploading on IRS Officers website
8. ADG(PR,PP&OL) with request to post a tweet on official handle of the Department
9. Guard File
(Rohit Garg)
Deputy Secretary to the Government of India