Income Tax - Compulsory scrutiny of returns involving refund of Rs.5 lakhs or above
Instances have been brought to the notice of the Board wherein cases involving refund of Rs. 5 lakhs or above are not being picked up for scrutiny by the CASS in the networked stations. This happened in cases where credit for prepaid taxes is not being given at the time of processing for want of necessary documentary evidence. Such cases, therefore, do not fall in the category of determined refund of Rs. 5 lakhs or more and consequently are not picked up by the CASS . Subsequently, rectification orders are passed manually on submission of necessary evidence in respect of prepaid taxes and the data is not captured in the AST. As a result, several such cases involving refund of Rs.5 lakhs or above have been left out of the selection process.
Board wants all such refund cases that have been left out by CASS should be picked up for scrutiny through manual intervention in the networked stations.
CASS = Computer Assisted Scrutiny System
AST = Assessment Information System
CBDT Instruction No. 1/2008 Dated: January 9, 2008