CBDT extends Time Limit for Compulsory Selection of Returns for Complete Scrutiny during FY 2020-21 [Read Circular]

The Central Board of Direct Taxes (CBDT) has extended the time limit for compulsory selection of returns for Complete Scrutiny of cases during the Financial Year 2020-21 from September 30, 2020, to October 31, 2020.

It is clarified that even though the new statutory time limit as per the Taxation and other laws (Relaxations and amendment of certain provisions) Act, 2020 for selection of cases for Compulsory Scrutiny on the basis of prescribed parameters was extended to 31st March 2021, still for the purpose of timely allocation of cases to the NeAC, the above time limit will have to be strictly adhered to, otherwise, the allocation of cases to NeAC will get considerably delayed.

“Considering the difficulties faced by the field formation due to COVID-19 pandemic and PAN migration-related issues, this matter has been reconsidered and it has been decided to extend the date for selection of cases for Compulsory Scrutiny on the basis of prescribed parameters, as communicated vide Board’s letter dated 17.09.2020, from 30th September, 2020 to 31st October, 2020,” the notification said.

The cases covered under the scenarios mentioned in Para 2 (b) and 2(c) of this letter shall be transferred to the Central Charges by issue of orders under section 127 of the Act, immediately after service of notice under section 143(2) of the Act.

The letter, the various time limits were prescribed for completion of certain actions.

Firstly, selection of cases for compulsory scrutiny on the basis of the prescribed parameters shall be completed by 30th September 2020.

Secondly, the Survey Cases with impounded materials have to be transferred to the Central Charges under section 127 of the Income-tax Act, 1961 (Act) within 15 days of issue of notice under section 143(2) of the Act.

Lastly, search cases under section 153C of the Act, if lying outside the Central Charges, have to be transferred to the Central Charges u/s 127 of the Act within 15 days of issue of notice under section 143(2) of the Act.