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Scrutiny under cass cbdt instruction no 7, sep 2014

03 July 2015

CBDT had issued instruction no 7, dated sep 26, 2014 under which for Tax Scrutiny cases selected under CASS, AO was suppose to given questionarie only on specific reasons under which the cases was selected under CASS..But lot of people are receiving same standard questionarrie asking for all sort of details which they use to issue before this circular. However, post this circular the questionarie needs to be more specific and issue related and not General Questionarie. What is the remedy available to assessee in such cases, can they tell the assesse office to issue to revised questionarie keeping in mind the instruction no 7, dated sep 26, 2014 ??

Pls guide

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5 Replies

Girish Kumar Narang (Partner) (23 Points)
Replied 28 July 2015

Can we object to such unwarranted questionnaires?

On enquiry, one of the AO replied that he has already taklen approval from higher authorities. How can higher authorities give approval in wiriting without being satisfied (as required by the instructions)?

Any comments. How to approach such cases.

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 28 July 2015

Enquiry can be specific. BUt as per IT act, once the case is selected for scrutiny, the entire assessment and all aspects can be examined by the AO. Even when the CASS is issue specific, you cannot question the AO's right to examine all aspects of the case. The main reason for this is that while the CASS reason will be covered thoruoughly in the proceedings, other aspects which are "Audit" prone also need to be examined, for fear that audit party may rake up these issues later on. From the A's point of view also, it is better that all aspects are properly verified and discussed in the order sheet/Asst order. The representatives of assessees must keep this in mind and impress upon the AO's to properly record all the enquiries made during assessment, so that the room for re-opening under section 147/263 is minimized.

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Girish Kumar Narang (Partner) (23 Points)
Replied 28 July 2015

But, are audit team and ao not bound by Cbdt instructions.

Girish Kumar Narang (Partner) (23 Points)
Replied 28 July 2015

But, are audit team and ao not bound by Cbdt instructions.

Sanjay Aggarwal (CA Job) (25 Points)
Replied 28 July 2015

CBDT in their interview has mentioned that AO should restrict the enquiry only for the matter for which it has been selected link below https:// m.ndtv.com/profit/no-taxman-can-terrorise-assesses-of-scrutiny-cbdt-774838