The Central Board Of Direct Taxes (CBDT) has recently issued guidelines clarifying that when a return has been furnished in response to a notice u/s 142(1) of the Act, where such notice was issued due to the information contained in NMS Cycle/ SFT information, such return will not be taken up for compulsory scrutiny but that the scrutiny will be conducted.
In the event of a compulsory audit, the guidelines state that the International Taxation and Central Circle Charges will conduct the audit based on the prescribed parameters and procedures outlined in the guidelines, with the prior administrative approval of the concerned Pr. CIT/ Pr. DIT/CIT/DIT, and the audit will continue to be handled by these charges.
In accordance with the amendments made by the Finance Act, 2021, reducing the time limit for service of notice u/s 143(2) to three months from the end of the financial year in which the return is filed, it was also stated in the guidelines that the selection and transfer of cases involving the completion of the assessment in a faceless manner, to NaFAC, must be completed by 31 May 2022.
In addition, the recommendations stipulated that the delivery of notices pursuant to Section 143(2) of the Act must be completed by June 30, 2002 for instances chosen for mandatory review.
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