News Update

GST - Govt notifies fresh tax rates for GTA + renting of motor cab + jobwork of printing of newspapers & journals + composite supply of works contract to Govt agencies + exempts services provided by and to FIFA + services by Fair Price Shop + Crop Insurance Schemes + LLP to be construed as Partnership firm + services of plumbing & house-keeping through e-commerce platforms liable to registrationNITI Aayog To Launch 'Mentor India' CampaignFM reviews macro economic stability of economyMoS, PMO calls for 'Make in India' health moduleI-T - Whether Explanation to Sec 37(1) gets attracted even if there is no specific material to suggest participation of assessee in alleged kickbacks - NO: HCTreading the GST Path XXX What is "cab"?Apex Court rules Triple Talaq is unconstitutionalTrump warns Pakistan against providing shelter to terror groupsITC claim on Railway Receipt in lieu of Tax InvoiceComposite and mixed supply under GST - Golmaal ReturnsHM launches Digital Police Portal; FIRs can now be filed online in 34 States & UTsI-T - Contributions to provident fund not recognized as valid deduction u/s 80C(2)(vi), is deemed as short-deductions u/s 192 and hence taxable as 'Income from other sources' : ITATIndia's exclusive rights to explore polymetallic nodules from seabed extendedCX - Being busy with procedural requirement under GST is no ground to grant adjournment: CESTATChennai Airport Customs seizes gold worth Rs 4.6 Crore; One person arrestedGovt appoints CISF ADG Dharmendra Kumar as DG of Railway Protection ForceGlobal Forum releases compliance ratings for 10 tax jurisdictions (See 'Brief' in 'TII')PM for soil testing by hand-held devices; calls for involving startupsST - Warehouses are specifically covered under term Railways and they need not necessarily belong to railways - no tax liability on construction of warehouse for CWC in railway premises: CESTATTourism earns about Rs 15000 Cr in July monthPM congratulates OPS being sworn as TN Dy CM; to be Finance Minister alsoI-T - Whether even if assessee returns no exempt income in a particular AY, disallowance of certain expenditure incurred to earn such exempt income is warranted u/s 14 rw Rule 8D - NO: HCImport policy of Urad / Moong dal is revised from 'free' to ‘restricted’CX - When Tribunal decides that goods are exempted under notf. 50/2003, it would have direct impact on rate of duty, therefore, appeal would lie before SC: HCI-T - Remuneration paid to Artist for loss of business occasioned by virtue of non-compete agreement, is revenue receipt, if she is allowed to work elsewhere subject to payment of 5% of her earnings: HCPower Minister calls for 3Ds approach - De-carbonisation, decentralisation & digitalisationMAT Report - CBDT notifies New Form 29B with exhaustive AnnexureWhether the Government has allowed Tax payable under reverse charge to be paid through ITC? (See 'TOG Insight' in Taxongo.com)Domestic Airlines carried 657 lakhs pax between Jan to July, 2017 - A growth of 17% in trafficInter-state supply-who is liable to pay IGST?Rosneft, Russian energy giant, wraps up deal to buy 49% stake in Essar OilStreet Lighting Scheme illuminates 50,000 km of roadsI-T - Whether if a conditional grant comes from abroad, a foreign country is to be construed as a person or authority as per Explanation 10 to Section 43(1) - NO: ITAT
Untitled Document

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

INSTRUCTION NO

5/2017, Dated: July 7, 2017

To

All Pr. Chief-Commissioners of Income-tax/Chief-Commissioners of Income-tax
All Pr. Directors-General of Income-tax/Directors-General of Income-tax

Subject: Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd.-

1. In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2017-2018:-

(i) Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact of following amounts:

• in excess of Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, while at other charges, quantum of such addition should exceed Rs. 10 lakhs;

• for transfer pricing cases, quantum of such addition should exceed Rs. 10 crore and where:

a) such an addition in assessment has become final as no further appeal was/has been filed; or

b) such an addition has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or

c) such an addition has been confirmed at 1st appeal stage in favour of revenue or subsequently and further appeal of assessee is pending.

(ii) All assessments pertaining to Survey under section 133A of the Income-tax Act, 1961 ('Act') excluding those cases where books of accounts, documents etc. were not impounded and returned income [excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year. However, where the assessee retracts from disclosure made during the Survey, such cases will not be covered by this exclusion.

(iii) Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A & 153C read with section 143[3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.

(iv) Return filed in response to notice u/s 148 of the Act.

(v) Cases where registration/approval under various sections of the Act such as 12A, 35(1)(ii)/(iii), 10(23C) etc. of the Act have not been granted or have been cancelled/withdrawn by the competent authority, yet the assessee has been claiming tax-exemption/deduction in the return. However, where such order of withdrawal of registration/approval has been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

(vi) Cases in respect of which specific and verifiable information pointing out tax-evasion is given by any Government Department/Authority. However, before selecting a case for scrutiny under this criterion, Assessing Officer shall take prior administrative approval from the concerned jurisdictional Pr. CIT/Pr.DIT/CIT/DIT.

2. Computer Aided Scrutiny Selection (CASS): Cases are also being selected under CASS-2017 on the basis of broad based selection filters and in a non-discretionary manner in two categories viz. Limited Scrutiny & Complete Scrutiny. List of such cases is being separately intimated by Pr.DGIT(Systems) to the concerned jurisdictional authorities for further action in these cases.

3. These instructions may be brought to the notice of all concerned for necessary compliance.

4. Hindi version to follow.

[F.No.225/180/2017/ITA.II]

(Rohit Garg)
Director-ITA.II, CBDT