The time limit for compulsory selection of returns for Complete Scrutiny of cases during the Financial Year 2020-21 from September 30, 2020, to October 31, 2020, was extended by the Central Board of Direct Taxes (CBDT).

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CBDT in a letter has described the following time limits for completion of certain actions:

  1. Selection of cases for Compulsory Scrutiny based on the prescribed parameters shall get completed by the date September 30, 2020.
  2. The Survey Cases with impounded materials have to get transferred to the Central Charges under section 127 of the Income-tax Act, 1961 (Act) within 15 days of issue of notice u/s 143(2) of the Act.
  3. Search cases u/s 153C of the Act, if lying outside the Central Charges, have to be transferred to the Central Charges u/s 127 of the Act within 15 days of issue of notice u/s 143(2) of the Act.

And CBDT further states in the notification, “Considering the difficulties faced by the field formation due to COVID-19 pandemic and PAN migration-related issues, this matter has been reconsidered and it has been decided to extend the date for selection of cases for Compulsory Scrutiny on the basis of prescribed parameters, as communicated vide Board’s letter dated 17.09.2020, from 30th September 2020 to 31st October 2020.”

CBDT has further clarified that even though the new statutory time limit is as per the Taxation and other laws (Relaxations and amendment of certain provisions) Act, 2020 for selection of cases for Compulsory Scrutiny based on prescribed parameters was extended to 31st March 2021, still for the purpose of timely allocation of cases to the NeAC, the above time limit will have to be strictly adhered to otherwise the allocation of cases to NeAC will also get considerably delayed.

The Chairman of the Central Board of Direct Taxes (CBDT) has given its approval about the necessary compliance brought up through this notification.

With Warm Regards,

CL Bureau.

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