What is scrutiny case in income tax

IT department adviced that u dont file a revised return for the A. T department advice and not filed any revised returns for the A. Dear sir i would like to know if ito finaly assessed the scrutiny case of a.

In fact finance finance minister should permit cash transactions too, else every buyer or seller would get harassed by revenue unless the assessees do not grease the revenue palms…. Dear sir Thanks for this article. I would like your views on the following. A person file return in India in assessment year on the income rec.

During f. No notice of scrutiny notice received by assess y 4. We have claimed salary paid to members of AOP and in personal return salary income has been shown and tax has been paid. Is it possible to set off the tax paid by the members in his individual capacity on salary with the tax liability arises due to non allowance of salary as expenses.

Thanks and regards. Dear Sir, during assessment proceedings under section A the AO allowed jewellery to the extent of quantity mention in notification no and remaining jewellery has been added under section 69 of the act. The most of the jewellery has been acquired prior to the block period and whatever is acquired during block period has been shown in cash flow statement.

How the addition can be challenged. During search operation I have surrendered income from house property and accordingly filed return under section A. Deduction on account of repair has been claimed on surrendered house income as well.

The AO denied the deduction on the ground that the surrendered income is over and above the regular income. Kindly advice whether the action of the AO is correct. Kindly also suggest some case laws for the same. Y is under the jurisdiction of Rohtak Income tax officer and ITO of that concerned ward made the assessment and created a demand and there is less than one month left for the appeal to ACIT. And the same assessee has filed his income for the assessment year from delhi. Can the assessee appeal for the secrityn assessment A.

Y in delhi. And how he can transfer the case to delhi ward for furture assessments. Just let me know the procedure in detail. Thanks and regard. Assesseing officer while making an order , has not quoated the section under which addition has been made, he should quote section My client says that he received a commission of Rs.

Please give your suitable suggestion for handling the situation. When confirmation letters were received by the AO, he had noticed that C had given a confirmation letter confirming the sum of Rs. After going through the confirmation letters received from the AO, I noticed that on the last date of the financial year it was noticed that the closing balance of Rs. The ao has called for an explanation. Similarly he has also pointed out that the payment made to the above said sundry creditor and the source though it is reflected in the bank statement had not been accounted for in the books.

He had called for an explanation before making an addition. The bank statements of earlier year may be asked for if they are relevant to the entries in the year in question. However no addition can be made in my view on the basis of an entry existing in any year other than the relavent year in question.

Sir,assessee is a clearing agent and incurred transport expeses on behalf of client. Whether AO is justified in treating these reciepts as income of assessee? Is the Cash Loans given or taken between the family members ie.

Yes the time limit for finalising the scrutiny assessment is 21 months from the end of relevant assessment year. Dear Hitesh ji more facts are required to suggest the grounds for appeal.

Like on what grounds the loss declared is ignored or the details of the documents found during search. Dear Nilratan Datta ji, Sundry Creditors can be disallowed only when the credit standing to their account is not proved and confirmed. Although I dont have the ready reference of relevent case laws to provide you the same immidiately but will try to find out for you.

Please refer the case laws relating to dsiallowance of sundry creditors and added to the income of the current year.

Matter has been refered but case case laws has been cited. Only it is stated that creditors cannot be disallowed but reason has been specifdied.

Please clarify the matter in an elaborate way. Please clarify the matter in an elaborate was. A notice from the Income Tax office is not something that anyone likes to find in their mailbox. You might have filed your return in due time but still received a notice. The reasons can be many. The tax department examines the returns filed and if it has any reason to believe that the information declared by the assessee is incorrect or incomplete then the case is taken up for scrutiny assessment.

The assessee is informed through issue of a notice and is supposed to take the required action as communicated by the department. There are two types of scrutiny assessments: Manual and compulsory scrutiny cases. Click here if you want an expert to help you with your scrutiny notice. The following are the most general reasons for selection of your case for scrutiny along with ways to dodge them.

Pay your advance taxes on time and file returns within the due date. The TDS that you show in your return and what is actually shown on the Traces website might not match. If 6 months have elapsed since the end of the financial year in which the return was filed, then a notice for scrutiny cannot be served upon the assessee. For instance, for the financial year ending , assuming return of income is duly filed; notice cannot be served under whatsoever circumstances after 30 th September, This helps in assessing the constitutional validity of the notice.

It may sound surprising but the fact is that if you do not raise an objection for being served a delayed notice, and at a later point of time, out of the blue, if you are bringing this to the attention of the tax officers, then there is a clear provision in the Act which says that your objection shall be rejected as you are deemed to have accepted the notice.

So, before proceeding any step further, you must first check the date of notice in order to confirm its legality. The department makes inquiry in pursuance to the return filed by you. Such notices are often confused by assessees as if a scrutiny has been initiated which although is not the case. Over and above these, there are other enquiry notices which are being served but on a very case by case basis. The notice generally requires the assessee to produce an exhaustive set of documents, like details of bank accounts, gifts made and received, copies of credit card statements, details of foreign travel and the source of expenditure, details on club membership and annual subscriptions, along with personally producing himself in front of the officer.

If you feel that you do not have all the documents ready that have been asked for submission, you must convey properly to the department. Presence of a Chartered Accountant or any other professional can make the process efficient to a great extent. The assessee is given an opportunity of being heard but which generally becomes redundant for not choosing to answer the questions earlier posed. Author does not solicit work by publishing this article.

Should you wish to contact the author, you may do so via www. Direct email address has not been given to avoid mail spam]. Good Morning. What is the maximum time limit within which Capital gain tax scrutiny by IT department can be initiated. Pls mention period and commencing date. In other words,after what period of the capital gain, matter can not be scrutinised by IT department. Or after what period notice to the assessee can not be issued regarding capital gain tax related matters.

Pls advise. Can a notice of scrutiny be served in respect of fy ,in the fy ?? Dear Sir I want to know two things : 1. This year many of my friends getting demand notice on e-filling Income tax site, when they login to file this year return, their is one flashing bar showing your pending action on clicking that one can find that what is the pending action from their side, many have no pending action but lot of people people have pending action as per site, many people received demand from that message and irony is that demand year is for financial year also.

Please let me what action they have to take in this case. If I forget to declare saving Bank interest which is more than and TDS is not deducted by bank and their is no mention of that is form 26 As also, please let me know that in this case can ITD look in my Bank account and send me notice.

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