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Scruitiny Vide CASS

Amit Kumar Agarwal (Practice) (132 Points)

04 September 2009

For assessment year 2008-09 in Kanpur all the members of families are getting notice for scruitiny. That is if there are Ten Income Tax files with one address all ten have received notices. The notice specifically mentions that the case has been selected through CASS. How is it possible that all the returns belonging to one address may be selected? In most of these cases income is only Interest Income. Kindly reply if any of you have any knowledge about this way of selection.

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Gautam Joshi (Partner) (361 Points)
Replied 13 September 2009

Originally posted by :Amit Kumar Agarwal
"	For assessment year 2008-09 in Kanpur all the members of families are getting notice for scruitiny. That is if there are Ten Income Tax files with one address all ten have received notices. The notice specifically mentions that the case has been selected through CASS. How is it possible that all the returns belonging to one address may be selected? In most of these cases income is only Interest Income. Kindly reply if any of you have any knowledge about this way of selection.	"

The annual information return or the AIR is generally considered an optional entry if the rest of the form is filled in correctly. After all, it's just details of investments and expenses much of which might have been covered in the form. But here's what actually happens. The banks, credit card companies and the like file their AIRs with details of all the transactions. The tax department compares your AIR with that of the financial entity. If you have left out transactions, it's a flag for the department to scrutinise your return.

But there are over 3 crore returns filed every year. Your paper is literally a drop in the ocean. Allow us to puncture that happy bubble. The tax department uses a computer-aided scrutiny selection (CASS) procedure that picks up cases which show a likelihood of tax evasion. AIR information is one of the inputs in the CASS and, therefore, non-disclosure of an AIR transaction in the income-tax return would definitely put a taxpayer at the risk of his case being selected for scrutiny, says Shishir Jha, commissioner of income tax and CBDT spokesperson. This could be the thin edge of the wedge for a taxpayer. It's best to play safe and fill the AIR correctly.