The Central Board of Direct Taxes (CBDT) has issued an Office Memorandum (OM) dated February 27, 2025, providing crucial clarifications on the implementation of the Risk Management Strategy (RMS) under the Income-tax Act, 1961, in light of recent amendments introduced by the Finance (No. 2) Act, 2024.
Key Highlights of the Memorandum
Exemption from RMS Upload for Certain Cases
- The memorandum reiterates that information arising from search and survey cases does not require uploading on the CRIU/VRU functionalities, as these cases are exempt from the Risk Management Strategy (RMS) under the Income-tax Act.
- Instead, such information should be directly forwarded to the Jurisdictional Assessing Officer (JAO) for necessary action under Section 147 of the Act.
Applicability of Unamended Sections 147-151
- Cases where a search, survey, or requisition of assets occurred between April 1, 2021, and September 1, 2024, will continue to be governed by the pre-amended provisions of Sections 147 to 151 of the Act.
- In these cases, the Assessing Officer (AO) is deemed to have sufficient information to suggest income escapement, eliminating the need for RMS execution.
Mandatory Submission to JAO
- Any previously uploaded information concerning such cases must be transferred directly to the JAO by March 10, 2025, to allow sufficient time for further action.
- Supervisory authorities have been instructed to monitor compliance within the stipulated timeframe.
RMS Upload for Other Cases
- For cases not falling within the search/survey category, officers must continue uploading information on CRIU/VRU functionality at the earliest to ensure timely execution of RMS.
Implications of the Update
This clarification is expected to streamline income tax assessments and risk management procedures, ensuring that search and survey cases are handled efficiently by the respective jurisdictional officers. The move also reinforces CBDT's commitment to improving compliance and reducing procedural bottlenecks in tax administration.
For tax professionals and businesses, adherence to these directives will be crucial in ensuring smooth processing of assessments and avoiding unnecessary procedural delays.
Official copy of the notification has been attached
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