The CBDT has issued Instruction No. 14/2015 in which important directives have been set out with regard to framing of scrutiny assessments in cases of assessees engaged in the business of Mining
Instruction No. 14/2015
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North-Block, New-Delhi, dated the 14th of October, 2015
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:- Framing of scrutiny assessments in cases of assessees engaged in the business of Mining-regarding
The assessees engaged in the business of mining are required to file a Annual Return with Indian Bureau of Mines (‘IBM’)(Form H-1 in case of Iron Ore mining and Form H-2 to H-8 in case of mining in other Ores).
2. Follow-up enquiries, in regard to some of the companies which find mention in the report of the Justice M.B. Shah Commission of Enquiry, which was constituted by the Government to probe illegal Iron and Manganese Ore mining, shows that in some cases there were significant differences in figures regarding production and closing stock, as reported in the Annual Return filed with IBM vis-a-vis the details furnished in the Income-tax Return
3. In this context, I am directed to convey that while scrutinizing the cases of entities engaged in the business of mining, the Annual Returns filed with IBM by the respective assessees should invariably be obtained and compared with the details submitted to the Income-tax Department so as to ascertain whether any suppression of production and discrepancy in stock exists and further necessary action as per provisions of law may be taken.
4. If significant discrepancies between the figures furnished to the mining authorities and the Income-tax Department for other years also come to the notice, then, necessary remedial measures may be taken for all the years concerned.
5. This may be brought to the notice of all concerned for necessary compliance
DCIT (OSD) IT(A-11)