Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2020-21 —conduct of assessment proceedings in such cases – regarding. –
- Cases pertaining to survey u/s 133A of the Income-tax Act, 1961 (‘Act’)
Parameter – Cases pertaining to survey u/s 133A of the 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 assessee has retracted from disclosure made during the Survey, such cases will be considered for scrutiny.
(i) In respect of such cases selected for compulsory scrutiny and where there is impounded material
(ii) In respect of such cases selected for compulsory scrutiny and where there is no impounded material
Assessment proceedings to be conducted by –
(i) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, such cases shall be transferred to Central Charges u/s 127 of the Act within 15 days of issue of notice u/s 143(2) of the Act.
(ii) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NeAC. The Assessing Officer shall upload the Survey Report in the ITBA at the time of issue of notice u/s 143(2) of the Act.
- Cases pertaining to Search and Seizure
Parameter – Assessments in Search and Seizure cases to be made under section(s) 153A, 153C read with section 143(3) of the Act and also for return filed for assessment year relevant to previous year in which authorization for Search and Seizure was executed under section 132 or 132A of the Act.
Assessment proceedings to be
conducted by – The cases falling u/s 153C, if
lying outside Central Charges, shall be transferred to Central Charges u/s 127
of the Act within 15 days of issue of notice u/s 143(2) for compulsory
selection.
- Cases in which notices u/s 142(1) of the Act, calling for return, have been issued
Parameter –
(i) Cases where no return has been furnished in response to a notice u/s 142(1) of the Act.
(ii) Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/AIR information/information received from Directorate of IC&I.
(iii) Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the specific information received from Law Enforcement Agencies, including the Investigation Wing; Intelligence/ Regulatory Authority/Agency; Audit Objection; etc.
Assessment Proceedings to be conducted by –
(I) These cases will be taken up for compulsory scrutiny by NeAC.
(ii) These cases will not be taken up for compulsory scrutiny and the selection of such cases for scrutiny will be through CASS cycle.
(iii) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NeAC.
- Cases in which notices u/s 148 of the Act have been issued
Parameter –
(i) Cases where no return has been furnished in response to notice u/s 148 of the Act.
(ii) Cases where return has been furnished in response to notice u/s 148 of the Act and where notice u/s 148 of the Act was issued due to the information contained in NMS Cycle/ AIR information/ information received from Directorate of IC&I.
(iii) Cases where return has been furnished in response to notice u/s 148 of the Act and where notice u/s 148 of the Act was issued due to the specific information received from Law Enforcement Agencies, including the Investigation Wing; Intelligence / Regulatory Authority / Agency; Audit Objection; etc.
Assessment proceedings to be conducted by –
(I) In such cases, Jurisdictional Assessing shall issue notice u/s 142(1) of the Act, calling for information regarding the issues on the basis of which notice u/s 148 was issued, subsequent to which, assessment proceedings in such cases will be conducted by NeAC.
(ii) These cases will not be taken up for compulsory scrutiny and the selection of such cases for scrutiny will be through CASS cycle.
(iii) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NeAC.
- Cases related to registration/approval under various sections of the Act, such as 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc.
Parameter – Cases where registration/approval under various sections of the Act, such as section 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc. have not been granted or have been cancelled /withdrawn by the Competent Authority, yet the assessee has been found to be claiming tax‑exemption/deduction in the return. However, where such orders of withdrawal of registration/approval have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.
Assessment proceedings to be conducted by – After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NeAC.
