INCOME TAX

INSTRUCTION NO. 1/2002

 Dated: January 21, 2002

Subject: - Scrutiny of assessments- procedure regarding.

Reference is invited to board's Instruction No. 5/2001 dated 20th September, 2001 and No.6/2001 dated 19th October, 2001 circulated vide above file number prescribing, therein the procedure for selecting cases for scrutiny and assessment during the current financial year 2001-2002.

2. It has been brought to the knowledge of the Board that because of the limit put on tile number of cases for scrutiny, even tile cases where prime facie wrong claims have been made are not being selected for scrutiny. It has accordingly been decided that following type of cases may, be taken for' scrutiny over and above the number indicated earlier with the approval of the CCIT:

(a) Cases where additional income has been detected during the, course of Surveys;

(b) Cases where definite reports of concealment of income including cases on which reports received from other enforcement agencies;

(c) Cases involving similar issues either decided in favour of the Department or which are being agitated by the Department in earlier years, where substantial tax is involved.

3. It has also been brought to the notice of the Board that AC/DC in some of the ranges are finding it difficult to cope up either with the number of cases with them or the type and nature of cases required to be handled. It has accordingly been decided that cases may be allocated to Additional CIT/JCIT range or to ITO depending on the nature and type of cases, with the approval of CCI'.

F No. 225/95/2001/ITA-II

(Sangeetha Gupta)
DIRECTOR
Central Board of Direct Taxes