- What is Scrutiny?
Once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return U/s 142 , the department can initiate scrutiny proceedings if it has reason to believe that income is escaping has escaped assessment .
- What is Scrutiny Assessment?
‘Scrutiny Assessment’ means picking up the returns on a *scientific basis and then making detailed checking of the assessee’s return in order to make sure that:
- The assessee has not concealed/understated any income
- The assessee has not claimed excess loss
- The assessee has not underpaid tax
- The assessee has not claimed excess refund.
*Scientific basis means the various criteria prescribed by Central Board of Direct Taxes (CBDT) on the basis of which the returns are to be picked up for scrutiny.
Computer Assisted Scrutiny Selection System (CASS) picks up the returns for scrutiny which meets those criteria.
