Scrutiny Assessment

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Scrutiny Assessment (Sec 59)

(1) The proper officer may scrutinize the return and related particulars furnished by the taxable person to verify the correctness of the return in such manner as may be prescribed.

Communication of discrepancies:

(2) The proper officer shall inform the taxable person of the discrepancies noticed, if any, after such scrutiny in such manner as may be prescribed and seek his explanation thereto.

If reply is satisfactory:

(3) In case the explanation is found acceptable, the taxable person shall be informed accordingly and no further action shall be taken in this regard.

If reply is not satisfactory:

Cases that constitute unsatisfactory reply:

  1. In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or
  2. where the taxable person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted,

Action that may taken by proper officer:
The proper officer may initiate appropriate action including those under section 63, 64 or section 79, or proceed to determine the tax and other dues under sub-section (7) of section 66 or under sub-section (7) of section 67. That means proper office may take following recourse:

  1. Proceed to conduct audit
  2. Direct to conduct special audit
  3. Undertake procedure of inspection, search and seizure
  4. Such other action as may deemed fit

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