CBDT Releases guidelines for compulsory selection of ITR for Complete Scrutiny for FY 2021-22

Central Board of Direct Taxes [CBDT] has released guidelines for compulsory selection of Income Tax Returns [ITR] for Complete Scrutiny for FY 2021-22. The Guidelines are given below for reference:

Cases pertaining to survey u/s 133A of the Income-tax Act, 1961 (Act) subject to exclusion below:

Cases, where books of accounts, documents, etc. were not impounded and returned income (excluding any disclosure made during the Survey), is not less than returned income of preceding assessment year are not required to be considered for compulsory scrutiny.

However, the said exclusion is not applicable where the assessee has retracted from disclosure made during the Survey and such cases have to be considered for compulsory scrutiny.

Cases pertaining to Search and Seizure

Assessments in Search and Seizure cases to be made under section(s) 153A, 153C read with section 143(3) of the Act and also for return filed for assessment year relevant to the previous year in which the search was conducted under section 132 or requisition was made under section 132A of the Act.

Cases in which notices u/s 142(1) of the Act, calling for return, have been issued

1. Cases where no return has been furnished in response to a notice u/s 142(1) of the Act.
2. Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/AIR information/information received from Directorate of I&CI.
3. Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the specific information received from Law Enforcement Agencies, including the Investigation Wing; lntelligence/ Regulatory Authority/ Agency; Audit Objection; etc.

Cases in which notices u/s 148 of the Act have been issued

1. Cases where no return has been furnished in response to notice u/s 148 of the Act.
2. Cases where return is furnished in response to notice u/s 148 of the Act

Cases related to registration/approval under various sections of the Act, such as 12A, 35(1)(ii)/ (iia)/ (iii), 10(23C), etc.

Cases where registration/approval under various sections of the Act, such as section 12A, 35(1)(ii)/(iia)/(iiij, 10(23C), etc. have not been granted or have been cancelled/withdrawn by the Competent Authority, yet the assessee has been found to be claiming tax-exemption/ deduction in the return.

However, where such orders of withdrawal of registration/approval have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.