I-T - Compulsory Manual Selection of Cases for Scrutiny - CBDT Modifies Instruction
CBDT had issued Instruction No. dated 5.8.2013 laying down instructions on procedure and criteria for manual selection of returns/cases for scrutiny during the financial-year 2013-2014: 9 categories of cases/returns were prescribed for compulsory scrutiny:
Now, the Board has revised the instruction to add two more categories, namely:
1. Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT and the assessee has been found claiming tax-exemption under section 11 of the IT Act. However, the cases where such order of CIT(DIT has been reversed / set-aside in appellate proceedings will not be picked up for scrutiny under this clause.
2. Cases where order denying the approval u/s 10(23C) of the IT Act or withdrawing the approval already granted has been passed by the Competent-Authority and the assessee has been found claiming tax-exemption under the aforesaid provision of the IT Act.
These instructions were a closely guarded secret of the Department for sometime until the Delhi High Court in the Joginder Pal Gulati case reported in directed the Income Tax Department to upload the guidelines with regard to scrutiny on their website.
CBDT Instruction No.13/2013, Dated: September 20, 2013