The Central Board of Direct Taxes on 10th June 2021 has notified the parameters for compulsory selection of returns for complete scrutiny during the financial year 2021-2022 and conduct of assessment proceedings in such cases.
For cases pertaining to search and seizure, falling u/s 153C, if lying outside Central Charges, the Jurisdictional Assessing Officer is required to issue notice u/s 143(2) in cases where return is furnished u/s 153C or 142(1) calling for information in cases 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) or 142(1) of the Act.
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.
In cases where no return has been furnished in response to a notice u/s 142(1) of the Act, these cases will be taken up for compulsory scrutiny by NaFAC.
Further 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 30th June 2021.
As per the amendments brought vide Finance Act,2021, the time limit for service of notice u/s 143(2) of the Act has been reduced to three months from the month of end of the Financial Year in which the return is filed.
