1. The Central Board of Direct Taxes and Customs (CBDT) issued the Instructions regarding the selection of cases for the issue of notice under section 148 of the Income-tax Act, 1961. The Board with an objective of streamlining the process of selection of cases for the issue of notices under section 148 of the Act, directed that the various categories of cases be considered as ‘potential cases’ for taking action under section 148 of the Act by March 31, 2021, for the Assessment Year 2013-14 to 2017-18 by the Jurisdictional Assessing Officer (JAO).
i. Cases where there are Audit Objections (Revenue/Internal) which require action under section 148 of the Act.
ii. Cases of information from any other Government Agency/Law Enforcement Agency which require action under section 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. Fourthly, cases where information arising out of field survey action, requiring action under section 148 of the Act.
v. Cases of information received from any Income-tax authority requiring action under section 148 of the Act with the approval of the Chief Commissioner of Income Tax concerned.
2. No other category of cases, except the above, shall be considered for taking action under section 148 of the Act by the JAO.
3. It is clarified that action under section 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 under section 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.