Returns to be scrutinised if no response to I-T notice
In cases where notices have been issued under Section 148, and the assessee has not reponded to the notice, then it will be scrutinised
If you receive any notice from the Income Tax Department, make sure to respond to it, otherwise, you may face difficulties. The Central Board of Direct Taxes (CBDT) has issued necessary guidelines for scrutiny of tax returns for the financial year 2023-24. It provides information about standard procedures and processes related to Income Tax Returns (ITR). The guidelines include various examples, scenarios, surveys related to non-filing of returns, and essential aspects related to taxes.
What is the objective?
The objective of issuing these guidelines by CBDT is to make the scrutiny effective and ensure compliance with tax regulations. In cases where notices have been issued under Section 148 of the Income Tax Act and the assessing officer believes that a person’s taxable income has escaped assessment, then it will be scrutinised. Similarly, cases that are under examination and have been put on hold for any reason will also be considered. The aim of this process is to reduce tax-related disputes.
Opportunity for rectifying mistakes
Cases selected for scrutiny under the guidelines will not be transferred to the National Faceless Assessment Centre (NaFAC) until the case has not been transferred automatically. CBDT has clarified that communication made to the taxpayer by NaFAC for mandatory scrutiny selection or any subsequent action will not be applicable to international taxation and central excise duties.
NaFAC has been designated as the deadline of 9th June for the selection and transfer of cases. It is required to complete the assessment in a faceless manner. Additionally, the last date for selecting cases for mandatory scrutiny under Section 143(2) and for rectification of any errors or omissions during the scrutiny has been set as June 30.
As per CBDT, as per the amendments brought by the Finance Act 2021, the time limit for issuing a notice under Section 143(2) of the Income Tax Act has been reduced to three months from the end of the financial year.