No Compulsory Scrutiny when Income Tax Return Furnished u/ s 142(1) 

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 case of a mandatory review, the rules express that the Worldwide Tax collection and Focal Circle Charges will direct the review in view of the endorsed boundaries and methods framed in the rules, with the earlier managerial endorsement of the concerned Pr. CIT/Pr. DIT/CIT/DIT, and the review will keep on being taken care of by these charges.

As per the revisions made by the Money Act, 2021, lessening as far as possible for administration of notice u/s 143(2) to 90 days from the finish of the monetary year in which the return is recorded, it was likewise expressed in the rules that the choice and move of cases including the consummation of the evaluation in a nondescript way, to NaFAC, should be finished by 31 May 2022.

Likewise, the suggestions specified that the conveyance of notification compliant with Segment 143(2) of the Demonstration should be finished by June 30, 2002 for occurrences picked for compulsory audit.

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