Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi. the 15th March, 2021
Principal Chief-Commissioner of Income-tax (International Taxation)
Subject: Instruction regarding selection of Potential cases’ for issue of notice u/s 148 of the Income-tax Act. 1961 and rationalization of workload in International Taxation Charges 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 objectives of rationalisation of workload and streamlining the process of selection of cases for issue of notices u/s. 148 of the Act by the International Taxation Charge. hereby directs as under:
A. The verification exercise for remittances made on or before 31.03.2017. which have been flagged by the Directorate of Income-tax (Systems) shall be conducted only where the aggregate amount of flagged remittances made by a remitter during the corresponding Financial Year is Its. five (5) Crones cr more. In such cases and the cases where verification exercise was already completed before the issuance of the instant instruction. if the verification exercise indicates escapement of income in the hands of a non-resident remittee, such races will be considered as ‘potential cases’ for appropriate action u s 148 of the Act by 31.03.2021.
B. Further, the following categories of cases will be considered as Potential cases’ for taking action u s 148 of the Act tor the A.Y 2013-14 to A.Y. 2017-18 by 31.03.2021:
i. Cases where there are Audit Objection (Revenue Internal) which reclaim 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 of Non-Filer Management Systems (NMS) & other cases, as flagged by the Directorate of Income-tax (Systems) subsequent to 04.03.2021. The NMS cases flagged earlier will get subsumed in the new list:
iv. Cases of information arising oat of field survey action, which require action u/s 148 of the Act:
v. Cases of information arising out of FT&TR references, which require action as 148 of the Act:
vi. Cases where information has been received from any Income-tax Authority, including the Assessing Officer (A.0.) herself himself. which require action uS 148 of the Act. The information so received shall not include the information received from Directorate of Income-tax (Investigation), Central Charges and Directorate of Income-tax (Intelligence and Criminal Investigation) after 01.04.2019. Under this category, 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. No other category of cases. except the above, shall be considered for taking action u s 148 of the Act.
3. It is also clarified that in respect of the above categories of cases, action u/s 148 of the Act shall be taken in cases where the A.O. has reason to believe that income chargeable to tax has escaped assessment. The reason to believe shall be duly recorded and sanction as per section 151 of the Act shall be obtained before issuing notice u/s 148 of the Act.
4. 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 categories of cases in Para no. I above.
5. This issues with the approval of Chairman. CBDT.
Director (ITA-II), CBDT
i. PS to FM/PS to MoS(F)
ii. PS to Revenue Secretary
iii. Chairam, CBDT & All Members. CBDT
iv. All Pr.DGsIT/DGsIT
v. All Joint Secretaries/CsIT, CBDT
vi. JCIT, Data-Base Cell for uploading on irsofficersonline website
Director (ITA-II), CBDT