INCOME TAX INSTRUCTION NOnbsp62002 nbspDated July 26 2002 Subject nbspSelection of cases for Scrutiny procedure regarding In suppression of earlier instructions on the subject I am directed to state that the procedure for selection of cases for scrutiny during the current financial year 20022003 will be as under i The following categories of cases shall be compulsorily scrutinised a All cases where survey action us 133A of the Income tax Act 1961 has been undertaken and additional income has been detected shall be assessed us 1433144 of the Income Tax Act b All cases where report of concealment of income is received from the Investigation Wing of the Department eg report on a Tax Evasion Petition or from other enforcement agencies including CIB shall be taken up for scrutiny assessment c Cases involving issues which have either been decided in favour of the Department or which are being agitated by the Department in appeals where tax involved in the year under consideration is likely to exceed Rs 50000 in the four metropolitan cities namely Delhi Mumbai Kolkata and Chennai and Rs 20000 in other places shall be take up for Limited Scrutiny assessment us 1433i of the Income tax Act ii The DCITACIT and the ITOs will propose the lists of cases for scrutiny having regard to the information available with the Department and scrutiny potential of the cases eg heavy deductions under Chapter VIA Rs 50 lakh and above in case of companies and Rs 10 Lakh in case of noncompanies heavy refunds Rs 10 crore and above in case of metropolitan charges and Rs 1 crore and above in case of other charges and disproportionate income visavis turnover The lists will be approved by CIT after discussion with the JCITAddl CIT in charge of the Range iiiThe assessing officers will ensure that all the reasons are recorded before selecting any case of scrutiny and are properly investigated during the course of assessment under strict supervision of JCITAddl CIT iv Officers will have full accountability with regard to selection and satisfactory completion of cases v The Addl CITJCIT may assign cases selected for scrutiny assessment in even manner to the assessing officers having regard to their workload FNO 225462002ITAII SANGEETA GUPTA Director ITAII Central Board of Direct Taxes nbsp