The Central Board of Direct Taxes (CBDT) has issued the guidelines for compulsory selection of income tax returns for scrutiny for the fiscal year under which it has outlined a number of cases that would be taken up.
While the guidelines are largely in line with those of previous years, experts noted that the CBDT continues to focus on cases of possible tax evasion where taxpayer’s information is shared by other law enforcement agencies.
In a recent missive to field formations, the CBDT said that in cases, in respect of which specific information pointing out tax-evasion for the relevant assessment year is provided by any law-enforcement agency, including Investigation Wing, Intelligence, Regulatory Authority, Agency and the return for the relevant assessment year is furnished by the assessee, the jurisdictional assessing officer would prepare a list of cases with prior approval.
A consolidated list of such cases would be given to the Principal Commissioner of Income Tax who would then forward it to the Directorate of Income Tax (Systems). A notice under Section 143 (2) of the Income Tax Act for scrutiny would then be issued.
The CBDT has also said cases relating to search and seizures, cases where no returns have been filed despite a notice for filing the returns, cases where approvals and registrations have been taken under various sections of the Income Tax Act and cases where additions are made in earlier assessment years on a recurring basis.
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