The department will investigate income tax payers who do not respond to the notices of tax authorities

The Income Tax Department has issued guidelines regarding cases to be taken up under ‘Scrutiny’. Under this, the cases of income tax payers 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. As per the guidelines, tax authorities will have to send notices under section 143(2) of the Income Tax Act to income tax payers about discrepancies in income by June 30.

After this, the income tax payer will have to present the relevant documents in this regard. 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), which shall take further action. 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 the income tax payer claims income tax exemption or deduction despite cancellation or withdrawal of exemption by the competent authority. The guidelines state that notice under section 143(2) of the Act shall be given to the income tax payers through NAFAC.

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