Scrutiny assessments in cases of assessees engaged in business of Mining- CBDT Instructions
THE assessees engaged in the business of mining are required to file an Annual Return with Indian Bureau of Mines ('IBM')(Form H-1 in case of Iron Ore mining and Form H-2 to H-8 in case of mining in other Ores).
Follow-up enquiries, in regard to some of the companies which find mention in the report of the Justice M.B. Shah Commission of Enquiry, which was constituted by the Government to probe illegal Iron and Manganese Ore mining, shows that in some cases there were significant differences in figures regarding production and closing stock, as reported in the Annual Return filed with IBM vis-a-vis the details furnished in the Income-tax Return.
In this context, CBDT directs the field that while scrutinizing the cases of entities engaged in the business of mining, the Annual Returns filed with IBM by the respective assessees should invariably be obtained and compared with the details submitted to the Income-tax Department so as to ascertain whether any suppression of production and discrepancy in stock exists and further necessary action as per provisions of law may be taken.
CBDT Instruction No. 14/2015, Dated: October 14, 2015