IT return filing: The Central Board of Direct Taxes (CBDT) has issued the guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2023-24.
The CBDT has listed several parameters for the compulsory selection of returns for complete scrutiny and procedures for compulsory selection in such cases. These are prescribed below:
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1. Cases pertaining to survey u/s 133A of the Income Tax Act, 1961 (Act)
Returns filed for the assessment year relevant to the previous year in which survey was conducted under sector 133A of the Act by the I-T department. However, there are certain exclusions where the book of accounts, documents, etc. are not impounded, and returned Income (excluding any disclosure of hitherto undisclosed income made during the Survey) is not less.
2. Cases pertaining to Search and Seizure
ITRs where the IT department conducted search and seizure either prior to April 1, 2021, or after that will be taken for complete scrutiny.
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3. Cases in which notices u/s 142(1) of the Act, calling for return, have been issued & no returns have been furnished
Cases where no return has been furnished in response to a notice u/s 142(1) of the Act will be picked for complete scrutiny of ITRs.
4. Cases in which notices u/s 148 of the Act have been issued
Cases where return is either furnished or not furnished in response to notice u/s 148 of the Act.
5. Cases related to registration
Cases where registration/approval under various sections of the Act, such as section 12A, 12AB,35( 1 )(ii)/(iia)/(iii), 10(23C), etc. have not been granted or have been cancelled/withdrawn by the competent authority, yet the assessee has been found to be claiming tax-exemption/deduction in the return. However, where such orders of withdrawal of registration/approval have been reversed/set aside in appellate proceedings, those cases will not be selected under this clause, as per the CBDT notification.
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6. Cases involving addition in earlier assessment year(s) on a recurring issue of law or fact and/or law and fact
ITR may be taken for complete scrutiny where the addition in an earlier assessment year(s) on a recurring issue of law or fact and/or law and fact (including transfer pricing issue) is:
a) exceeding Rs 25 lakh in 8 metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune
b) exceeding Rs 10 lakh in charges other than eight metro charges. In addition to that, (i) has become final, as no further appeal has been preferred against the assessment order or (ii) has been upheld by the Appellate authorities in favour of revenue; even if further appeal of assessee is pending against such order.
7. Cases related to specific information regarding tax-evasion
Cases in which specific information pointing out tax evasion for a relevant assessment year is provided by the law agency and the tax return for the relevant assessment year is furnished by the taxpayer will be picked up for complete scrutiny of ITR.
