Central Board Of Direct Taxes Issues Guidelines For Compulsory Selection Of Returns For Complete Scrutiny In FY 2023-24

The notification said that , based on Guidelines dated 24.05.2023 issued from F.No. 225/66/2023 /ITA-II, 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 (`the Act’) subsequent to issuance of notices u/s 143(2)/142(1) of the Act in various category of cases.

Parameter 4 of the guidelines specifically focuses on cases where notices under Section 148 of the Income-tax Act, 1961, have been issued. According to this parameter, such cases will be selected for compulsory scrutiny only with the prior administrative approval of the Principal Chief Commissioner of Income Tax (Pr.CIT)/Principal Director General of Income Tax (Pr.DIT)/Commissioner of Income Tax (CIT)/Director General of Income Tax (DIT) concerned.

These authorities will ensure that cases lying outside Central Charges are transferred to Central Charges under Section 127 of the Act within 15 days of the service of notice under Section 143(2)/142(1) of the Act, which calls for information by the Jurisdictional Assessing Officer concerned.

Furthermore, the notification highlights scenarios where, during Search & Seizure actions conducted under Section 132 / 132A of the Act, information pertaining to individuals not integrally connected with the core business of the main assessee group, who do not belong to the same business group, and may reside in different cities, is discovered. In such cases, the relevant information is passed on to the jurisdictional Assessing Officer for assessment under Section 148 (applicable for searches conducted/requisitions made after 01.04.2021) of the Income-tax Act, 1961.

However, the CBDT clarifies that all such non-search cases, which are selected for scrutiny, are not obligated to be transferred to the Central Charges unless they fall under the purview of the Board's guidelines issued under F.No. 299/107/2013-IT(Inv.III)/1568 dated 25.04.2014.

Notfication No. F No. 225/66/2023 - ITA - II

Dated: 03.08.2023

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