The Central Board of Direct Taxes (CBDT) has issued guidelines for selecting returns and procedures for full scrutiny during the financial year 2022–23.
The CBDT said that, subject to exclusion, returns submitted for the assessment year applicable to the prior year in which a survey was performed under section 133A of the Income Tax Act The books of accounts, documents, etc. which were not impounded; returned income that is not less than the returned income of the preceding assessment year; and the assessee has not retracted from the disclosure are excluded from selection for compulsory scrutiny.
The cases shall be selected for compulsory scrutiny with prior administrative approval. The Pr. CIT/Pr. DIT/CIT/DIT concerned shall ensure that the cases are transferred to Central Charges within 15 days of the Assessing Officer concerned serving notice.
The cases shall be selected for compulsory scrutiny with prior administrative approval. The Pr. CIT/Pr. DIT/CIT/DIT shall ensure that cases are transferred to Central Charges within 15 days of service of notice by the Assessing Officer concerned. Where cases are not centralised and a return of income is filed in response to a notice, the Assessing Officer concerned shall serve the notice. Where such cases are not centralised and no return of income is filed in response to notice, the Assessing Officer concerned shall serve notice under section 142(1) of the Act calling for information.
The Assessing Officer shall post to ITBA the underlying documents on the basis of which the notice under Section 142(1) was issued, for access by the National Faceless Assessment Centre (NaFAC).
The Directorate of Income Tax (Systems) will refer these situations to NaFAC, which will take the appropriate measures. The assessee would be served with a notice under Section 142(1) of the Income Tax Act requesting information through NaFAC. The Assessing Officer shall prepare a list of cases falling under this parameter with the prior administrative approval of Pr. CIT/Pr.DIT/CIT/DIT concerned. The list of cases shall be submitted by the Pr. CIT/Pr. DIT/CIT/DIT to the Pr. CCIT concerned for onward transmission to NaFAC with a copy marked to DGIT (Systems). A Notice under section 143(2) of the Income Tax Act shall be served on the assessee through NaFAC.
"As per the amendments brought by Finance Act 2021, the time limit for service of notice u/s 143(2) of the Act has been reduced to three months from end of the Financial Year in which the return is filed. Therefore, selection of cases and transfer of cases, wherein assessments have to be completed in a faceless manner, to NaFAC shall be completed positively by May 31, 2022. In cases selected for compulsory scrutiny, service of notice u/s 143(2) of the Act shall be completed by June 30, 2022," the CBIC said.