CBDT warns Assessing Officers against expanding the scope of limited scrutiny in arbitrary manner

Newsroom24x7 Network

New Delhi: Instances where the scope of limited scrutiny has been expanded  by assessing officers of the Income Tax Department without going through the due process have been viewed very seriously by CBDT.

A CBDT memo of 30 November 2017 on unauthorised expansion of scope of limited scrutiny to all assessing officers points out that instances have come to the notice of CBDT where some assessing officers officers are going beyond their jurisdiction while making assessments in limited scrutiny cases by initiating new inquiries on new issues without complying with mandatory requirements of the relevant CBDT instructions issued on 26 September 2014, 29 December 2015, and 14 July 2016.

The CBDT has issued the instruction that assessing officers should abide by the instructions of CBDT while completing limited scrutiny assessments and should be scrupulous about maintainance of  note sheets in assessment folders.

It has been underscored by the CBDT that the Central Inspection Team of the CBDT was tasked with examination of assessment records on receipt of allegations of several irregularities. In one instance it was found that no reason had been sighted for expanding the scope of limited scrutiny and no approval had been taken from the Principal commissioner of Income Tax for conversion of limited scrutiny case to a complete scrutiny case and this gives rise to a very strong suspicion of mala fide intention and the concerned officer has been placed under suspension.

The officer suspended by CBDT, a deputy commissioner of income tax, has alleged that he has been victimised under the influence of an influential relative of a taxpayer.


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