Taxpayers Beware: Income Tax Dept to Initiate Reassessment Proceedings in matters involving High-Risk and High-Risk Non-PAN Transactions [Read Instruction]

The Directorate of Income Tax (Systems) has recently issued an instruction on Insight Portal, to expedite reassessment proceedings in matters involving high risk and high risk non-PAN.

The Board had earlier approved Risk Management Strategy (Cycle-2) has been executed for the identification of potential cases for action u/s. 148/148A of the Income Tax Act, 1961.

In this regard, potential cases pertaining to AY 2016-17 and AY 2019-20 identified on the basis of risk assessment of verification reports uploaded in the STR module, have been disseminated to field formations with below mentioned case types on the Verification module of the Insight portal.

The High-Risk transaction cases have been assigned to JAO and High Risk Non-PAN cases have been assigned to Pr.CCIT (CCA).

The Insight Instructions stated the following steps : —

Navigation path for accessing these cases is Insight Portal >> Verification Module >> Verification stage >> “Case type” (Under verification).

For the case type “High Risk Transaction”, users can initiate proceedings u/s 148/148A from the activity panel on the case detail screen to create a worklist pendency of cases u/s 148/148A on the Assessment module of ITBA. Subsequent proceedings/activities can be performed on the IT BA portal in the usual manner.

Underlying Information related to the case, mentioned in para 5 above, has been made visible in the Profile View of Insight Portal. Navigation path for accessing the underlying information is Insight Podal >> Taxpayer Profile View >> Taxpayer Annual Summary (TAS) >> Information >> Uploads.

For the case type “High Risk Transaction (Non-PAN)”, the underlying Information and documents related to these cases can be viewed by clicking on the hyperlink under ‘Non-PAN Entity Id’

In this regard, Verification Initiation Date (Insight Porta/ >> Verification Module >> Verification stage >> “Case type” (Under verification) >> View Details>> Verification Initiation Date) may be examined in cases being disseminated under RMS Cycle-2 and accordingly, appropriate action may be initiated in accordance with the relevant provisions u/s 148A/148 of the Income-tax Act, 1961 and directions issued by the Board in this regard.

The implementation of the new procedure for expeditious action on High Risk transactions is expected to cut the time short in actions against the high volume tax-evasions, and faster initiation of reassessment procedures under Sections 148A and 148 of the Income Tax Act.  Many high value transactions can attract Show Cause Notice from the Income Tax Department (Read Article), now faster than before with the implementation of the dissemination procedures as per the instruction issued.

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