The Central Board of Direct Taxes (CBDT) has amended the guidelines relating to compulsory selection of returns for complete scrutiny of search cases.
Last month, the Board has issued guidelines for the compulsory selection of income tax returns for scrutiny for the assessment year 2022-23.
As per the guidelines, the Board prescribed the parameters for compulsory selection on completion of which, notice u/s 143(2) of the Act shall be served on the assessee through NaFAC.
The Board clarified that where return has been furnished in response to notice u/s 142(1) of the Act and such notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/SFT information/information received from Directorate of I&CI, such return will not be taken up for compulsory scrutiny. Selection of such cases for scrutiny will be done through CASS cycle.
“The cases shall be selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above prescribed parameters and procedure with prior administrative approval of Pr. CIT/Pr.DIT/CIT/DIT concerned. The cases which are selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above prescribed parameters and procedure, shall, as earlier, continue to be handled by these charges,” the Board said.
The circular issued on Friday stated that for cases relating to search & seizure/requisition on or after April 01, 2021, the cases shall be selected for scrutiny with prior administrative approval of Pr. DIT/CIT/DIT concerned, who shall ensure that such cases are transferred to Central Charges u/s 127 of the Act within 15 days of service of notice u/s 143(2)/142(1) of the Act by the Assessing Officer concerned.
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