The Income Tax Department has issued guidelines regarding the cases to be taken under the ambit of ‘investigation’.
Under this, the cases of taxpayers who have not responded to the notices sent by the department will be compulsorily investigated. The department will also investigate cases where specific information relating to tax evasion has been provided by any law enforcement agency or regulatory authority.
According to the guidelines, tax authorities will have to send notices under section 143(2) of the Income Tax Act to taxpayers about discrepancies in income by June 30. After this, taxpayers will have to present relevant documents in this regard.
The matter will also be sent to NFFC
It said that where no return has been furnished in response to the notice under section 142(1) of the Act, such case shall be referred to the National Faceless Assessment Center (NaFAC), who shall take further action.
Right to give notice to tax authorities under section 142(1)
Section 142(1) empowers the tax authorities to issue a notice and seek clarifications or information in case the return is filed. In cases where returns have not been filed, they are asked to furnish necessary information in the prescribed manner.
The Income Tax Department will issue a consolidated list of cases in which taxpayers claim income tax exemption or deduction despite cancellation or withdrawal of exemption by the Competent Authority. It has been said in the guidelines that under section 143(2) of the Act, notice will be given to taxpayers through NAFAC.