The Central Board of Direct Taxes (CBDT) issued guidelines for Compulsory Selection of Returns for Complete Scrutiny for the Financial Year 2023-24.
The CBDT has already issued guidelines F.No. 225/66/2023/ITA- II in the matter of compulsory selection and based on these guidelines, various letters/queries have been received in the Board from DsGIT (Inv.) and CCsIT (Central) regarding centralization of cases u/s 127 of the Income tax Act,1961 subsequent to issuance of notices u/s 143(2)/142(1) of the Income Tax Act in various category of cases.
Parameter 4 of the guidelines F.No. 225/66/2023/ITA- II for the procedure for compulsory selection emphasises the cases, where notices under Section 148 of the Income Tax Act have been issued pursuant to search and seizure / survey actions conducted on or after the first day of April, 2021.
These cases shall be selected for compulsory scrutiny with prior administrative approval of Pr.CIT/ Pr.DIT/ CIT/ DIT concerned who shall ensure that such cases, if lying outside Central Charges, are transferred to Central Charges under Section 127 of the Income Tax Act within 15 days of service of notice under Section 143(2) / 142(1) of the Income Tax Act calling for information by the Jurisdictional Assessing Officer concerned.
The Guidelines further clarifies that during the course of search and seizure action, information relating to some other persons, who may have one-off/very few or limited financial transaction(s) with the main assessee group covered in the search under Section 132/132A of the Income Tax Act, may be found.
Such persons are not integrally connected with the core business of the main assessee searched and do not belong to the same business group. Often such persons are also not residing in the same city as that of the main assessee. In such cases, the relevant information is generally passed on to the jurisdictional AO for assessing them under Section 148 (for searches conducted/requisition made after 01.04.2021) of the Income Tax Act, 1961.
Accordingly, with reference to Parameter 4 of Para 2 of the above-referred guidelines dated 24.05.2023, it is clarified that all such non-search cases selected are not required to be transferred to the Central Charges unless covered by the Board’s guidelines under F.NO. dated 25.04.2014.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
