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Kindly refer to the above.
2. The parameters for compulsory selection of returns for
Complete Scrutiny during Financial Year 2021-22 and conduct of assessment
proceedings in such cases are prescribed as under:
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S No.
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The Parameter
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Assessment Proceedings to be conducted by
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1
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Cases pertaining to survey u/s 133A of the Income-tax Act,
1961 (Act)
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Cases pertaining to Survey under section 133A of the Act
subject to exclusion below:
Exclusion:
Cases where books of accounts, documents, etc. were not
impounded and returned income (excluding any disclosure made during the
Survey) is not less than returned income of preceding assessment year are
not required to be considered for compulsory scrutiny.
However, the said exclusion is not applicable where assessee
has retracted from disclosure made during the Survey and such cases have to
be considered for compulsory scrutiny.
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(i) After the issue of notice u/s 143(2) of the Act by the
Jurisdictional Assessing Officer for compulsory selection, cases selected
for compulsory scrutiny which have impounded material, shall have
to be transferred to Central Charges u/s 127 of the Act within 15 days
of issue of notice u/s 143(2) of the Act.
(ii)After the issue of notice u/s 143(2) of the Act by
the Jurisdictional Assessing Officer for compulsory selection, assessment
proceedings in respect of cases selected for compulsory scrutiny
and where there is no impounded material will be conducted by National
Faceless Assessment Centre(NaFAC). The Assessing Officer shall upload the
Survey Report in the ITBA at the time of issue of notice u/s
143(2) of the Act.
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2
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Cases pertaining to Search and Seizure
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Assessments in Search and Seizure cases to be made under section(s)
153A, 153C read with section 143(3) of the Act and also for return filed
for assessment year relevant to previous year in which authorization for
Search and Seizure were executed under section 132 or 132A of the Act.
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The cases
falling u/s 153C, if lying outside under section(s) 153A, 153C read
with section 143(3) of Central Charges, the Jurisdictional Assessing
the Act and also for return filed for assessment year Officer is required
to issue notice u/s 143(2) relevant to previous year in which the
Search was in cases where return is furnished u/s 153C conducted
under section 132 or requisition was made or 142(1) calling for information
in cases under section 132A of the Act. where no return is furnished
u/s 153C. Such cases shall be transferred to Central Charges
u/s 127 of the Act within 15 days of
issue of notice
u/s 143(2)/142(1) of the Act.
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3
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Cases in which notices u/s 142(1) of the Act, calling for
return, have been issued
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(i) Cases where no return has been furnished in response to
a notice u/s 142(1) of the Act.
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These cases will be taken up for compulsory scrutiny by
NaFAC.
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(ii) Cases where return has been furnished in response to
notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was
issued due to the information contained in NMS Cycle/AIR
information/information received from Directorate of I&CI
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These cases will not be taken up for
compulsory scrutiny and the selection of such cases for scrutiny will be
through CASS cycle.
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(iii) Cases where return has been furnished in response to
notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued
due to the specific information received from Law Enforcement Agencies,
including the Investigation Wing; Intelligence/ Regulatory
Authority/Agency; Audit Objection; etc.
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After the issue of notice u/s 143(2) of the Act by the
Jurisdictional Assessing Officer for compulsory selection, assessment
proceedings
in such cases will be conducted by NaFAC.
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4
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Cases in which notices u/s 148 of the Act have been issued
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(i) Cases where no return has been furnished in response to
notice u/s 148 of the Act.
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In such cases, Jurisdictional Assessing shall issue notice
u/s 142(1) of the Act, calling for information regarding the issues on the
basis of which notice u/s 148 was issued, subsequent to which, assessment
proceedings in such cases will be conducted by NaFAC.
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(ii) Cases where return has been furnished in response to
notice u/s 148 of the Act.
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After the issue of notice u/s 143(2)
of the Act by the Jurisdictional Assessing Officer for
compulsory selection, assessment proceedings
in such cases will be conducted by NaFAC.
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5
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Cases related to registration/approval under various
sections of the Act, such as 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc.
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Cases where registration/approval under various sections of
the Act, such as section 12A, 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.
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After the issue of notice u/s 143(2) of the Act by the
Jurisdictional Assessing Officer for compulsory selection, assessment
proceedings
in such cases will be conducted by NaFAC.
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3. Without prejudice to the above, the cases
which are selected for compulsory scrutiny by the International Taxation and
Central Circle charges following the above prescribed guidelines, shall, as
earlier, continue to be handled by these charges.
4. The exercise
of selection of cases for compulsory scrutiny on the basis of the above
parameters and service of notice u/s 143(2) of the Act will have to be
completed by 30.06.2021. As per the amendments brought vide Finance
Act,2021, the time limit for service of notice u/s 143(2) ofthe Act has been
reduced to three months from the month of end of the Financial Year in
which the return is filed.
5. These instructions may be brought to the
notice of all concerned for necessary compliance.
For details refer below attached picture :
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