Income Tax - Selection of cases for Scrutiny based on AIR - CBDT Clarification
AS per Section 285BA of the Income Tax Act, 1961, read with Rule 114E of the Income Tax Rules, 1962, specified entities (Filers) are required to furnish an Annual Information Return (AIR) in respect of specified financial transactions registered/recorded by them during the financial year to the income tax authority. The information in the AIR is generally used for scrutiny of the Income Tax return of the assessee.
Board has now decided that scrutiny of such cases would be limited only to the aspects of information received through the AIR. However a case may be taken for wider scrutiny, where it is felt that apart from the AIR information there is a potential escapement of income more than Rs. 10 lakhs.
Board had also decided that in all cases which are picked up for scrutiny only on the basis of AIR information, the notice u/s 143(2) should be clearly stamped with “AIR Case”.
CBDT F. No. 225/26/2006-ITA.II(Pt) Dated September 08, 2010.