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FAQs on Action Required for Income Escaping Assessment under section 148 AYs 2013-14 to 2017-18

FAQs on Action Required for Income Escaping Assessment under section 148 AYs 2013-14 to 2017-18

CBDT vide communication dated 09.03.2021 issued 13 FAQs on action required to be taken in cases where income escaping assessment pertains to A.Y.s 2013-14 to 2017-18.




F.No.414/132/2018-IT (Inv. I)(Part I)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

******


Room No.269, North Block, New Delhi,

dated 9th, March, 2021


To,


All the DGsIT (Inv.)/ CCsIT (Central)/ DGIT (I&CI)


Subject: Action required to be taken in cases where income escaping assessment pertains to A.Y.s 2013-14 to 2017-18- reg.


Ref: Instruction issued vide F.No. 414/132/2018-IT (Inv. I) (part I) dated 05.03.2021


Respected Madam/Sir,


Kind reference is invited to the above.


2. In this regard, I am directed to convey that clarifications/queries have been received from various field formations with respect to instruction issued vide F.No. 414/132/2018-IT (Inv. I) (part I) dated 05.03.2021. In view of the above, a FAQ (Frequently Asked Questions) has been prepared for necessary guidance of the field formations. FAQ is enclosed for your kind perusal and necessary action.



3. This issues with the approval of the Chairman and Member (Inv.), CBDT [i/c]: 


Yours faithfully,


Encl: As above.



(Bhogendra Prasad)

Under Secretary, (Inv.I), CBDT


Frequently Asked Questions (FAQs) with respect to Board’s directions issued  vide F.No.414/132/2018-IT (Inv. I) (Part I) dated 5th March, 2021


Question No. 1. Which functionality is to be used for uploading the information in respect of cases where the income escaping assessment pertains to AYs 2013-14 to 2017-18 as mentioned in Para 2(a) of the aforementioned directions issued vide F.No.414/132/2018-IT(Inv.I)(Part I) dated 5th March, 2021?


Answer: (a) In cases where income escaping assessment pertains to AYs 2013­14 to 2017-18, and where enquiries/ investigations have been completed by 05/03/2021, the information and verification results thereof are to be uploaded on the ‘Verification Report Upload (VRU)’ functionality.


(b) In cases where the actionable information is of bulk nature (eg. beneficiaries in cases of entry operators, penny stock transactions etc.) the ‘Case Related Information Upload (CRIU)’ functionality is to be used for uploading the information.


Question No.2. In respect of Para 2(a) of the aforesaid directions, whether all such cases where information has already been disseminated to the erstwhile AO/JAO are required to be uploaded using the said functionalities. Does this include all reports sent even earlier, which had information involving escapement of income relevant for A.Ys. 2013-14 to 2017-18?


Answer: Information or Verification result, which has not been disseminated previously or has been disseminated after 01.04.2019, may be uploaded using the VRU/CRIU functionality. In respect of information disseminated before 01.04.2019, it. is expected that the concerned Assessing Officer must have already taken the necessary action.


Question No. 3 Which utility is to be used for uploading the information in respect of cases pending before Investigation Wing referred to in Para 2(b) of the aforesaid directions?


Answer: (a) In respect of cases pending before investigation wing, where nature and value of information is available, VRU functionality may be used with Verification Result Type as “Verification Pending”. In such cases, information details, as well underlying document, needs to be uploaded.


(b) In case of STRs and OCM data where information is already available with Systems, the information details of pending case need not be uploaded again.


Question No. 4. In search cases, where proceedings are to be completed u/s 153A/ 153C, whether information is to be uploaded using CRIU/ VRU functionalities.


Answer: (a) All 153A and 153C cases, where the information is to be handled by respective central charges, no separate upload is required on VRU/CRIU. The information in respect of such cases may be shared with Central Charges, as per the procedure being followed presently.


(b) Cases where information has been handed over to Central Charges but information is required to be further disseminated to Jurisdictional charges or cases where action is to be taken by JAOs, VRU functionality may be used by Central charges where the actionable year and quantum of verification result (undisclosed income etc.) can be reasonably ascertained. CRIU utility may be used where bulk data (e.g., Beneficiaries of entry operators, penny stock transactions etc.) is involved.


Question No. 5 In search Cases, what is to be done if the information in the seized material pertains to period outside block period?


Answer: (a) In cases where investigation is completed partially, VRU functionality may be used where the actionable year and quantum of verification result (undisclosed income etc.) can be reasonably estimated.


(b) In cases where no investigation has been conducted yet and where nature and value of information is available, VRU functionality may be used with Verification Result Type as “Verification Pending”. In such cases, information details, as well underlying document, needs to be uploaded. CRIU utility may be used where bulk data is involved.


Question No. 6 What will happen to beneficiaries for AYs 13-14 to 17-18, emanating out of survey, where survey reports are not yet finalized.


Answer:  (a) In cases where investigation is complete/partially complete, VRU functionality may be used where the actionable year and quantum of verification result (undisclosed income etc.) can be reasonably estimated/ascertained.


(b) In cases where no investigation has been conducted yet and where nature and value of information is available, VRU functionality may be used with Verification Result Type as “Verification Pending”. In such cases, information details, as well underlying document, needs to be uploaded.


(c) CRIU utility may be used where bulk data is involved.


Question No. 7. Are the reports which have been sent to central circles also to be uploaded in VRU?


Answer: There is no requirement to upload the information if the said information is actionable by the Central Circle. However, if the information is not actionable by Central Circle or is meant for further dissemination, VRU functionality may be used by the Central Charges for uploading the information. In case such information has not been disseminated by the Investigation Wing to Central Charges for further dissemination, then such information may be uploaded on VRU by the Investigation Wing.


Question No. 8. What is to be done w.r.t information received from various LEAs (SEBI, DRI, REIC, CEIB etc.)?


Answer:  Such cases are covered by para 1(ii) of Instruction dated 04.03.2021 issued from F.No.225/40/2021/ITA-II by ITA Division of CBDT.


Question No. 9. What is to be done in cases related to Foreign Assets/Transactions/Intelligence?


Answer: Proceeding in respect of Foreign Assets/Intelligence cases are to be taken under BMA, 2015. As such, directions dated 05.03.2021 are not applicable to the same.


Question No. 10. Are the documents or information also to be sent through normal modes like speed post or email also, even when uploading on Insight completed?


Answer: In cases where information has been uploaded on the CRIU/VRU functionality, all the relevant evidences/documents should be uploaded on the relevant functionality itself.


Question No. 11. As cases involving escapement of income of more than 50 lakhs are not getting time barred for AYs 13-14 to 17-18, in STR and similar cases where estimated income escapement is more than 50 Lakhs for an assessee for a year, should the investigation continue or should it be stopped and information as such be uploaded?


Answer:  If escaped income is more than Rs. 50 lakhs and is supported by underlying asset, then the investigation can be continued, as the same will not be getting barred by limitation of time.


Question No. 12. What is to be done w.r.t beneficiaries identified during course of investigation of STRs/TEPs not forming part of STR/TEP dissemination?


Answer:  The procedure as explained in Question No. 6 may be followed.


Question No. 13. How to upload documents of large size in VRU or CRIU? Is there a limit on the size of the document and the upload package?


Answer: (a) The current limit of Individual document size is 4MB and the limit of the package(zipped) is 20MB is being increased to 6MB and 30MB, respectively.


(b) In case the size of a single document exceeds the limit size, the document may be uploaded in two or more parts. In such cases the description of the document may be mentioned to help the user in getting the complete picture and linking the documents.


(c) In case the package size is greater than 30 MB, please contact the helpdesk.


Annexure: Instructions regarding selection of cases for issue of notice u/s 148 


F. No.225/40/2021/ITA-II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi


Dated: 4th March,2021


To


All Pr. Chief-Commissioners of Income-tax/ Chief-Commissioners of Income-Tax


Madam/Sir.


Subject: Instructions regarding selection of cases for issue of notice u/s 148 of the Income-tax Act, 1961 – regarding.


1. The Central Board of Direct Taxes (Board), in exercise of its powers u/s 119 of the Income-tax Act,1961 (Act), with an objective of streamlining the process of selection of cases for issue of notices u/s 148 of the Act, hereby directs that the following categories of cases be considered as ‘potential cases’ for taking action u/s 148 of the Act by 31.03.2021 for the A.Y 2013-14 to A.Y 2017-18 by the Jurisdictional Assessing Officer (JAO):


i. Cases where there are Audit Objections (Revenue/Internal) which require action u/s 148 of the Act;


ii. Cases of information from any other Government Agency/Law Enforcement Agency which require action u/s 148 of the Act;


iii. Potential cases including:-


(a) Reports of Directorate of Income-tax (Investigation),


(b) Reports of Directorate of Intelligence & Criminal Investigation,


(c) Cases from Non-Filer Management System (NMS) & other cases as flagged by the Directorate of Income-tax (Systems) as per risk profiling;


iv. Cases where information arising out of field survey action, requiring action u/s 148 of the Act.


v. Cases of information received from any Income-tax authority requiring action u/s 148 of the Act with the approval of Chief Commissioner of Income Tax concerned.


2. No other category of cases, except the above, shall be considered for taking action u/s 148 of the Act by the JAO.


3. It is clarified that action u/s 148 of the Act shall be taken by the Assessing Officer in respect of the above categories of cases after forming a reasonable belief that income chargeable to tax has escaped assessment and ‘reasons to believe’ shall be recorded and required sanction as per section 151 of the Act shall be obtained before issuing notice u/s 148 of the Act.


4. These instructions shall not be applicable to the Central charges and International Taxation charges for which separate instructions are being issued.


5. Issues with the approval of the Chairman, CBDT.


Update: CBDT issues further Instruction on 12.03.2021 on potential cases for section 148


F.No.225/40/2021/ITA-II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes


New Delhi, the 12th March, 2021
To All Principal Chief Commissioners of Income-tax Madam/Sir, Subject: Instructions regarding selection of cases for issue of notice u/s 148 of the Income-tax Act, 1961–clarification to CBDT’s letter dated 04.03.2021-reg

1. With reference to CBDT’s Instruction dated 04.03.2021 on the above-mentioned subject. it has been decided to clarify as under:     (a) The ‘potential cases’ at Point no.1(iii) mean the cases flagged by the Directorate of Income-tax (Systems) subsequent to 04.03.2021. It is further clarified that the NMS cases flagged earlier will get subsumed in the new list.     (b) With respect to criterion at Point no.1(v), it is clarified that any other Income-tax Authority’ includes the Assessing Officer (A.0.) herself/himself. Further, the information received as per Point no.1(v) shall not include information received from Directorate of Income-tax (Investigation). Central Charges and Directorate of Income-tax (Intelligence and Criminal Investigation) after 01.04.2019.     (c) With respect to the condition at Point no.1(v), that cases are to be considered as potential

cases for issue of notice u/s 148 of the Act ‘with the approval of CCIT concerned’, it is clarified that the CCIT shall call for the list of the potential cases along with details and evidences from the Subordinate Authorities and shall, after careful examination, suggest to the A.O., the potential cases to be taken for consideration for action u/s 148 of the Act. 2. Subsequent to the issuance of notice u/s 148 of the Act, the A.O. shall upload all the underlying documents relied upon and satisfaction recorded, in the ITBA Module for all category of cases in Para no.1 of CBDT’s Instruction dated 04.03.2021. 3. This issues with the approval of Chairman, CBDT.

(Ravinder Maini)
Director (ITA-II), CBDT



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