INCOME TAX

INSTRUCTION NO. 1949/1998

 Dated: July 17, 1998

Subject:- Selection and disposal of scrutiny assessments during the financial year 1998-99- reg.

The parameters for selection of cases for scrutiny in respect of returns filed during the financial year 1997-98 were laid down by the Board vide its Instruction No. 1942 (F.No. 225/100/97-ITA-II dated 11-7-97). A number of cases picked up for scrutiny on that basis are pending as on date. During the financial year 1998-99, the Action Plan lays greater emphasis on the tasks of computerisation, collection and expansion of tax base. Accordingly during this period, only time-barring scrutiny assessments may be completed, so that the Assessing Officers can devote greater time to the priority areas of computerisation and collection. As regards non-time-barring cases picked up for scrutiny and pending as on date, those shall be taken up only after 1-4-99 and disposed of thereafter.

2. Under certain exceptional circumstances such as. requirement to comply with directions of the Supreme Court/High Court/Special Court or cases where circumstances warrant investigation, there may be a need to complete scrutiny assessments in cases which arc non-time-barring in nature. During this year, any such case can be taken up only where a conscious decision to that effect has been made at the level of CCIT/DGIT. CCIT/DGIT may convey their prior written approval for scrutiny ofnoll-time-barring cases under their own signature before the cases arc actually scrutinised. Such powers shall not be delegated to any authority below.

3. So far as parameters for selection of cases for scrutiny in respect of returns filed during the financial year 1998-99 is concerned, they shall remain the same as laid down in Instruction No. 1942. However, as the exercise of packing up of cases for scrutiny is time consuming, the same may be initiated only after 1-4-99.

F.No.225/65/98-TA.II

MALATHI R. SRIDHARAN
Under Secretary to the Government of India.