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How many scrutinies - any llimit

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Srinivasa rao A

23 Points Posted on 02 February 2014

Dear experts,

Please let us know whether there is any limit for scrutinies, that too consequetively? My client has 4 consecutive scrutines and every time they are asking the same old documents, though not related. My client is afraid to take on the Income tax department. Any legal remedy? Any provision to take all the things at a time so as to avoid mental agony?

Replies (1)

SURESHAN K

Auditor

151 Points Posted on 02 February 2014

The Assessing Officers role in scrutiny selection is very limited. Most of the cases are selected through CASS (Computer Assisted Selection of Scrutiny) based on certain criteria fixed by CBDT. Certain limited number of cases are selected Mannually by Assessing Officers which is also governed by guidelines issued by CBDT. Hence scope for scrutiny harassment is almost eliminated. There will be sufficent reason for consecutive scrutiny such as involving in high value transactions which are reported in "Annual Information Returns" such as purchase/sale of immovable property having value above 30 lakh, purchase of mutual fund units, cash deposits in SB accouts etc. If we have nothing to conceal, we need not be afraid of Income Tax Officer.