Income Tax - Questionnaire in cases selected for scrutiny
INSTANCES have come to the notice of the CBDT that in cases selected under scrutiny, while issuing the first notice, Assessing Officers do not convey the specific compliance requirements like production of accounts, furnishing of documents, information, evidences, submission of other requisite particulars etc. Since the taxpayers or their authorized representatives are required to comply with the statutory notice issued by the Assessing Officer, they remain clueless about the information required to be submitted and their appearance before the Assessing Officer does not serve any fruitful purpose except recording of their presence. This causes undue hardship to the taxpayers and unnecessary wastage of their time.
So, the CBDT directs that in cases selected for scrutiny, it should be the endeavour of the Assessing Officer that the initial notice issued under section 143(2) of the Income-tax Act, 1961 is accompanied by a notice under section 142(1) along with the questionnaire containing details of specific documents/information/evidences etc. that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective case.
The Board emphasizes that all the Assessing Officers are required to comply with the above directions. Please note that the Board only suggests that it should be the endeavour of the Assessing Officer, not a mandatory requirement.
CBDT Instruction No. 19/2015., Dated: December 29, 2015