CBDT revises guidelines for compulsory selection of ITRs for Scrutiny

Notification no. 225/81/2022/ITA-II, dated 03-06-2022

The Central Board of Direct Taxes (CBDT), vide notification F.NO. 225/81/2022/ITA-II, dated 11-05-2022, had issued guidelines for the purpose of compulsory selection of returns for Complete Scrutiny during Financial Year 2022-23 and conduct of assessment proceedings in such cases. The CBDT has laid down the parameters for selection & conducting assessment in following circumstances:

a) Cases pertaining to survey
b) Cases pertaining to Search and Seizure
c) Cases where notice is issued for filing of return
d) Cases where notice is issued under Section 148
e) Cases related to registration/approval under sections 12A, 35, 10(23C), etc.
f) Cases involving additions in an earlier AYs on a recurring issue of law and/or fact
g) Cases related to specific information regarding tax evasion

Now the board has revised guidelines for compulsory selection of returns pertaining to search and seizure. The board has bifurcated the selection criteria into the following two categories:

Category 1: Search & Seizure/requisition conducted prior to 01-04-2021, and
Category 2: Search & Seizure/requisition conducted on or after 01-04-2021.

It has been provided that in cases, wherein search and seizure action was conducted on or after 01-04-2021, it shall be mandatory for the Assessing Officer to ensure that such cases are transferred to Central Charges under section 127 within 15 days of service of notice by him.

Click Here To Read The Full Notification