High-Risk Transaction Alert: New Guidelines for IT Assessments 2023-24

The Directorate of Income Tax (Systems) has issued a crucial directive dated 19.01.2024 (F. No. DGIT(S)-ADG(S)-21/High Risk Transaction cases/2023-24) to all key stakeholders in the income tax domain. This communication emphasizes the dissemination of high-risk transaction and high-risk non-PAN transaction cases on the Verification module of the Insight portal.

Detailed Analysis:

1. Risk Management Strategy Execution: The Board approved Risk Management Strategy (Cycle-3) has been put into action for identifying potential cases for action under sections 148/148A of the Income Tax Act, 1961.

2. Identification and Dissemination of Cases: Potential cases, pertaining to the assessment years 2017-18 to 2020-21, have been identified based on risk assessment of verification reports uploaded in the STR module. These cases have been disseminated to field formations with specified case types on the Verification module of the Insight portal.

3. Case Types and Navigation:

• High-Risk Transaction: Assigned to JAG
• High-Risk Transaction (Non-PAN): Assigned to Pr. CCIT(CCA) Navigation path for accessing these cases is provided for seamless access.

4. Proceedings Initiation and ITBA Portal Usage: Users can initiate proceedings under sections 148/148A for “High Risk Transaction” cases. Non-PAN Cases proceedings are to be initiated as per the provided instructions.

5. Visibility of Underlying Information: The Profile View of Insight Portal reveals underlying information related to the case, facilitating a comprehensive understanding. This information can be accessed through a specified navigation path.

6. Technical Assistance: In case of technical difficulties, users are provided with a helpdesk number and an email address for prompt support.

Conclusion:

The communication from the Directorate of Income Tax (Systems) underscores the importance of addressing high-risk transactions diligently. Stakeholders are urged to follow the specified procedures and initiate necessary actions in compliance with relevant provisions of the Income-tax Act, 1961. The directives aim to enhance transparency and efficiency in the assessment process.

****

Directorate of Income Tax (Systems),
ARA Centre, Ground Floor, E-2 Jhandewalan Extension,
New Delhi-110055

Insight Instruction No. 74 Date. 19.01.2024

F. No. DGIT(S)-ADG(S)-2lHigh Risk Transaction (Pan and Non-PAN) cases/2023-24

To,
All Principal Chief Commissioner(s) of Income Tax/ CCsIT
All Principal Director Generals(s) of Income Tax / DGsIT
All Principal Commissioner(s) of Income Tax/ CsIT/ CsIT (Admin & TPS)/ CsIT (TDS)
All Principal Director (s) of Income Tax / DsIT

Sir / Madam,

Sub: Dissemination of High-Risk transaction and High-Risk Non-PAN Transaction cases on the Verification module of Insight portal — reg.

Kindly refer to the above.

2. The Board approved Risk Management Strategy (Cycle-3) has been executed for the identification of potential cases for action u/s. 148/148A of the Income Tax Act, 1961.

3. In this regard, potential cases pertaining to AY 2017-18 to AY 2020-21 identified on the basis of risk assessment of verification reports uploaded in the STR module, have been disseminated to field formations with below mentioned case types on the Verification module of the Insight portal.

4. Navigation path for accessing these cases is Insight Portal >> Verification Module >> Verification stage >> “Case type” (Under verification).

5. For the case type “High Risk Transaction”, users can initiate proceedings u/s 148/148A from the activity panel on the case detail screen to create a worklist pendency of cases u/s 148/148A on the Assessment module of ITBA. Subsequent proceedings/activities can be performed on the ITBA portal in the usual manner. [For Non-PAN Cases proceedings may be initiated as per instruction no. F.No.225/40/2021/ITA-II Dated 26.03.2021]

6. Underlying Information related to the case, mentioned in para 5 above, has been made visible in the Profile View of Insight Portal. Navigation path for accessing the underlying information is Insight Portal >> Taxpayer Profile View >> Taxpayer Annual Summary (TAS) » Information >> Uploads.

7. For the case type “High Risk Transaction (Non-PAN)”, the underlying Information and documents related to these cases can be viewed by clicking on the hyperlink under `Non-PAN Entity Id’.

8. In this regard, appropriate action may be initiated in accordance with the relevant provisions u/s 148/148A of the Income-tax Act, 1961 and directions issued by the Board in this regard.

9. In case of technical difficulty, users may contact:

(i) Helpdesk number — 1800-103-4216 or

(ii) Write to `[email protected].

Yours faithfully,

(Manish Mishra)
Addl. Director General (Systems)-2

Copy to:

1. PPS to Chairman, Member (IT &Rev), Member (S&FS), Member (L), Member (TPS), Member (A&J), Member (Admn.) CBDT and DGIT (Systems)-2, New Delhi for information.

2. Nodal Officer of irsofficersonline.gov.in, DG systems corner, ITBA, Insight i-Library.

Addl. Director General (Systems)-2