Survey

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amit (Querist)
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15 October 2013 after survey if ADIT declares to survey officer to release all taken documents of assess and not a peny is declared by assess. and in that case scrutiny the AO without any proper need or query can order a reassesment of returns of partner even if the firm accounts are audited and turnover is 100% of item and profit is 8% and no reasonable cause is found just because the survey officer was told to give back all documents to assess ,then also officer kepts all documents with him.

amit

amit (Querist)
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16 October 2013 why no answer is i am asking anything bad or wrong against law

amit

amit (Querist)
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17 October 2013 plz do not make fools to people if u cannot answer a simple question my friend if u r charging any amount for query plz let me know i am capable of paying a reasonable amount for a answer or at least write something 4 my ? ok cu if u can answer thks for wasting my time

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 July 2025 Thank you for your question, and I understand your frustration.

Let’s address your concern in a structured way:

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### ✅ **Background Summary** (based on your input):

* A **survey** under section **133A** was conducted.
* The **ADIT (Additional Director of Income Tax)** instructed the **survey officer** to **return all documents**.
* The assessee (firm) did **not declare any unaccounted income**.
* The firm's accounts are **audited**, with **100% declared turnover** and **8% profit** — i.e., under **presumptive taxation (Sec 44AD)** or regular tax regime.
* **Assessing Officer (AO)** now wants to do **scrutiny/reassessment** of **partners**' returns, **without a proper reason**.

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### ❓ **Can AO reassess without proper cause?**

No, not legally. Reassessment (under section 147) or scrutiny requires **recorded reasons** and a valid **"reason to believe"** that **income has escaped assessment**. AO **cannot reassess or scrutinize arbitrarily**.

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### 🔍 **Key Legal Points:**

#### 1. **Reassessment Requirements (Sec 147/148):**

* AO must have a **reason to believe** that income chargeable to tax has escaped assessment.
* Must record such reasons in writing.
* The notice u/s 148 must be based on **tangible material** — not just suspicion or vague grounds.

#### 2. **Scrutiny Selection (Computer-Assisted):**

* Scrutiny cases are usually selected through **Computer Assisted Scrutiny Selection (CASS)** — based on risk parameters, not whims of the AO.

#### 3. **Retaining Documents Post-Survey:**

* The **survey team cannot impound documents indefinitely** without approval under **Rule 6 of the Income Tax Rules**.
* If ADIT instructed to return, the officer must comply.
* **Failure to return documents** without legal authority could be challenged.

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### ✅ **What You Can Do:**

1. **RTI Application** – File RTI to know if reasons are recorded for reassessment/scrutiny.
2. **Written Representation** – Submit a written protest/clarification to AO with all facts and request closure.
3. **Approach Higher Authorities** – If AO continues without basis, escalate to **Addl. CIT**, **JCIT**, or **CIT (Appeals)**.
4. **Writ Petition** – In extreme cases, reassessment without cause can be **challenged in High Court** under Article 226.

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### 🛑 Summary:

* AO **cannot reassess** partners just because a survey was conducted, especially if **no incriminating evidence** was found.
* The firm appears compliant: audited, declared turnover, standard profit.
* Documents retained without basis or ADIT’s override could be **a procedural violation**.

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