INSUBCONTINENT EXCLUSIVE:
The CBDT has said that it only picks less than 1% cases, out of the total returns filed.The CBDT has issued a fresh directive on 'limited
scrutiny' assessment cases allowing the tax officials to widen the scope of such probes if they receive "credible" information of tax
evasion by assessees.The policy-making body for the Income Tax Department, however, made it clear in its directive issued on Wednesday that
such an enquiry will be specific to the allegation of tax theft that was flagged to the taxman by any other probe agency, in order to ensure
that the assessing officer does not undertake a "fishing or roving" exercise resulting in harassment of the taxpayer
The Central Board of Direct Taxes (CBDT), as per the directive, said it received "several" representations by field officials of the I-T
Department in 'limited scrutiny' cases where they pointed out "specific" instances of tax evasion for the relevant year (2017-18) which was
provided to them by other law enforcement, intelligence or regulatory agencies like the CBI, Enforcement Directorate (ED), DRI, Intelligence
Bureau or markets regulator SEBI
the tax net in lieu of a specific instance
The assessing officer (AO) then issues notice to the assessee for production of additional documents and proofs to review the case and such
an exercise is to be completed in quick time and the taxman "cannot travel beyond" the specific issue under scrutiny
system that flags certain cases based on their unique transactions profile
(provided by other probe agency) during the conduct of assessment proceedings in 'limited scrutiny' cases but only after prior
administrative approval of their boss (concerned Principal Commissioner or Commissioner of the I-T Department)
large enquiry or investigation except the specific issues concerned
The CBDT also made it clear to tax officials across the country that this exemption does not mean that they can widen the scope of a
'limited scrutiny' case to a 'complete scrutiny' one and the latest directions were only to "facilitate consideration of those issues
wherein specific information of tax evasion has been furnished by any law enforcement, intelligence or regulatory authority or agency."
which the case was flagged for 'limited scrutiny'," the CBDT directive said
additional issue would also be considered during the course of pending assessment proceeding," the directive added
