News Update

Govt hikes retirement age of Ayush doctors & civilian docs of Armed Forces to 65Govt hikes retirement age of Ayush doctors & civilian docs of Armed Forces to 65Defence Accounts Service officer Ms Swaranashree Rao appointed as Spokesperson for Ministry of DefenceDirect tax collections peak at Rs 6.9 lakh cr after refund of Rs 1.2 lakh crPadmavat film maker moves Apex Court against ban by some StatesGovt decides to reduce quantum of borrowing from Rs 50K Crore to only Rs 20K Crore after review of revenue collections trendA nuanced approach to Works Contract under GST (See 'TOG Insight' in Taxongo.com)I-T - When court finds that assessee has not truly disclosed all facts in case & now wants to withdraw soiled petition, liberty to file fresh petition can only be granted if Revenue is compensated for suffering costs on account of assessee's mistake - YES: HCGovt to strike off fresh lot of 1.2 lakh shell companies from RoC RegisterGST Council to rationalise tax rates on many goods & Services tomorrowCX - Outdoor Catering Services is a necessity but once said service is excluded, the use of such service, whether statutorily required or otherwise, does not render the services eligible for CENVAT: CESTATI-T - When agreement is all about purchase of developed residential sites, merely because developer had to construct some common facilities before the handover, it would amount to 'works contract' - NO: ITATCII demands C Form be continued till Petroleum & Natural Gas brought under GSTCentral Advisory Board favours online education & more autonomy for quality institutesHelpdesk should respond on time and give correct guidanceCacophony against amending Constitution is Music for the IgnorantFirst course on Sustainable Urban Planning launchedScience & technology to be harnessed for preservation of environment: Dr Harsh VardhanMilk production registers 20% growthSteel Industry seeks removal of Customs duty on raw materialsFake encounter - SC asks SIT to wrap up probe in 12 FIRs by Feb-endHaryana also bans release of ‘Padmavat’I-T - When doings of assessee are not found to be not above board, it does not deserve invocation of extraordinary jurisdiction of HC under Art 226: HCPublic art should be part of urban planning: PuriGSTN technical glitches to be reviewed by Sushil Modi-headed Committee tomorrowCX - Without canteen, factory would not be allowed to operate under Factories Act, 1948 - Outdoor catering services, not primarily for personal use or consumption of employee, is covered under definition of Input service: CESTATCENVAT - Services of merger has no relation with manufacture - Even if order goes beyond the SCN, same is not an error of a kind which can be rectified by a ROM application: CESTAT
Untitled Document

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

INSTRUCTION NO

5/2017, Dated: July 7, 2017

To

All Pr. Chief-Commissioners of Income-tax/Chief-Commissioners of Income-tax
All Pr. Directors-General of Income-tax/Directors-General of Income-tax

Subject: Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd.-

1. In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2017-2018:-

(i) Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact of following amounts:

• in excess of Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, while at other charges, quantum of such addition should exceed Rs. 10 lakhs;

• for transfer pricing cases, quantum of such addition should exceed Rs. 10 crore and where:

a) such an addition in assessment has become final as no further appeal was/has been filed; or

b) such an addition has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or

c) such an addition has been confirmed at 1st appeal stage in favour of revenue or subsequently and further appeal of assessee is pending.

(ii) All assessments pertaining to Survey under section 133A of the Income-tax Act, 1961 ('Act') excluding those cases where books of accounts, documents etc. were not impounded and returned income [excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year. However, where the assessee retracts from disclosure made during the Survey, such cases will not be covered by this exclusion.

(iii) Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A & 153C read with section 143[3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.

(iv) Return filed in response to notice u/s 148 of the Act.

(v) Cases where registration/approval under various sections of the Act such as 12A, 35(1)(ii)/(iii), 10(23C) etc. of the Act have not been granted or have been cancelled/withdrawn by the competent authority, yet the assessee has been claiming tax-exemption/deduction in the return. However, where such order of withdrawal of registration/approval has been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

(vi) Cases in respect of which specific and verifiable information pointing out tax-evasion is given by any Government Department/Authority. However, before selecting a case for scrutiny under this criterion, Assessing Officer shall take prior administrative approval from the concerned jurisdictional Pr. CIT/Pr.DIT/CIT/DIT.

2. Computer Aided Scrutiny Selection (CASS): Cases are also being selected under CASS-2017 on the basis of broad based selection filters and in a non-discretionary manner in two categories viz. Limited Scrutiny & Complete Scrutiny. List of such cases is being separately intimated by Pr.DGIT(Systems) to the concerned jurisdictional authorities for further action in these cases.

3. These instructions may be brought to the notice of all concerned for necessary compliance.

4. Hindi version to follow.

[F.No.225/180/2017/ITA.II]

(Rohit Garg)
Director-ITA.II, CBDT