‘LIMITED SCRUTINY’ UPDATES ON 30th’NOVEMBER’2018

CASE UPDATES:

• It is explained by the Central Board of Direct Taxes (CBDT) that the  limited scrutiny cases referred under CASS cycles in 2017 and 2018 where the issues referred to by the law scope enforcement/ intelligence/ regulatory authority or agency.
• In CASS cycles 2017 and 2018, few cases were selected for scrutiny in form of ‘Limited Scrutiny’ case. In the cases of ‘Limited Scrutiny’ the officers appointed for the case cannot travel beyond those issues for which they were appointed for.
• The issues of several cases under ‘Limited Scrutiny’ information pointing out specific tax-evasion for the relevant year enforcement are asked by the filed authority. Agencies are available with the concerned Assessing Officer, however, in view of the restrictive nature of the restrictive nature of enquiry which can be made in ‘Limited Scrutiny’ cases, the same presently cannot be acted upon.
• After the Examination of issue properly, it was said by the board that the issue coming out in this from the information  can also be examined during the course of conduct of assessment proceedings in such ‘Limited Scrutiny’ with prior approval.
• It was said by the board that in Limited Scrutiny, assessing officer shall not expand the enquiry level for which the case was assigned for ‘Limited Scrutiny’ & issue arising from nature of information,” the Board said.
• The officers assigned for the same should duly record the reason for expansion of the scope of ‘Limited Scrutiny’ to the extent.
• For the proper monitoring in the cases provisions of Section 144A of the Income Tax Act, 1961 may be invoked in suitable cases.
• The mentioned aspects shall be applicable from the date of issue and shall apply to the pending ‘Limited Scrutiny’ case selected in CASS 2017 and 2018 cycle.