Central Board of Direct Taxes (CBDT) issued guidelines on August 3, 2023 for the mandatory selection of returns for comprehensive scrutiny in the financial year 2023-24. The guidelines are in addition to the previous guidelines issued by the CBDT on May 24, 2023.
The following are the parameters for the mandatory selection of returns for comprehensive scrutiny in FY 2023-24
- Returns pertaining to survey under section 133A.
- Returns pertaining to search and seizure.
- Returns where notice under section 142(1), calling for return, have been issued or no returns have been furnished.
- Returns where notice is issued under Section 148.
- Cases related to registration/approval under sections 12A, 35, 10(23C), etc.
- Cases involving additions in earlier AYs on a recurring issue of law and/or fact.
- Cases related to specific information regarding tax evasion.
The cases will be selected for compulsory scrutiny with prior administrative approval of Pr. CIT/Pr. DCIT. The service of notice under section 143(2) of the Act shall be completed within the statutory time line i.e., by 30.06. 2023.
The guidelines also provide for the following
- The cases selected for compulsory scrutiny shall be scrutinized by a team of officers headed by a Principal Commissioner or Commissioner.
- The cases shall be scrutinized in a time-bound manner and the report of scrutiny shall be submitted to the Principal Commissioner or Commissioner within a period of six months from the date of selection of the case.
- The Principal Commissioner or Commissioner shall take appropriate action on the report of scrutiny, including issuance of demand notice, penalty notice, etc.
The guidelines are aimed at strengthening the tax administration and ensuring that taxpayers comply with their tax obligations. They also provide for a more rigorous scrutiny of returns that are selected for compulsory scrutiny.
Official copy of the guidelines has been attached herewith
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