TaxTMI 
TaxTMI 
UTILIZATION OF INFORMATION IN THE ANNUAL INFORMATION RETURNS (AIRs) RELATING TO FINANCIAL YEAR. 2007-08 (ASSESSMENT YEAR 2008-09) AND SUBSEQUENT YEARS - REG.
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.... Assessing Officers may resort to proceedings under section 148 for earlier assessment years in that case on the basis of AIR information available, if any, if they have reasons to believe that income has escaped assessment. (c) After issuance of notice under section 143(2)/148, as the case may be, the Assessing Officers shall forward a list of such cases, alongwith value of criterion, to their Range Addl./Joint Commissioner for the purpose of monitoring. 3. AIR information with PAN where there is no information of returns filed :- (a) To identify the non-filers, CIT(CO)/CIT(in-charge) of each RCC/CC will run the application in the AIR module to generate the list of individual cases or persons who are non-filers and shall intimate the list of non-filers to the concerned Assessing Officers in respect of these cases. (b) Further Action thereon: After identification of the non-filers, query letters (in the format as given in Annexure 5) shall be issued by jurisdictional Assessing Officers to all Non-Government transacting persons. (i) if it is intimated by the tax payer that a return has already been filed before issue of the letter, the jurisdic....
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....r for the relevant assessment year. (ii) if return is filed in response to the query letter or in response to the notice issued under section 142(1), the jurisdictional Assessing Officer shall assess the case under section 143(3)/144. (iii) if return was filed prior to issue of the query letter, the jurisdictional Assessing Officer shall manually apply such criteria (as per Annexure 1) to select such cases for scrutiny. (iv) Where-no return has been filed either prior to or after issue of query letter/notice under section 142(1) or where the time for issuance of notice under section 143(2) has expired, the jurisdictional Assessing Officer may consider issuance of notice under section 148 as per law after recording reasons therefor, if he/she has reasons to believe that income has escaped assessment. (c) Where the person is not an existing assessee (has never filed a return of income earlier) or does not respond to the served letter, the designated Assessing Officer shall assess the case under section 144/147/143(3), after issuance of notice under section 142(1)/148/143(2), as the case may be, as per due process of law. (d) The designated....
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.... progress of work and ensure security and confidentiality of the AIR information by following the need-to-know principle. The CsIT and Addl. CsIT/JCsIT shall closely monitor the action taken on such information. The jurisdictional Assessing Officer and the designated Assessing Officer shall maintain a register of action taken on AIR information in the format as per Annexure 4, which should be inspected every quarter by the Range head and the CIT concerned. Summary of the actionable points is enclosed as Annexure 2. The flow chart is enclosed as Annexure 3. Dissemination 8. This instruction should be immediately brought to the notice of all officers working in your Region for taking appropriate action. ANNEXURE 1 1. Investment in property is more than five times the gross receipts. Expression : ITR 1: (Purchase of property (006 from AIR))/(Gross Total Income (Column 3) + Agricultural Income (column 6) + Income Claimed exempt (Column 25) - Total taxes paid (Column 15 (d))> 5 ITR 2: (Purchase of property (006 from AIR))/(Gross Total Income (Part B-TI 9) + Income Claimed exempt (Schedule EI 6) - Total taxes paid (Part B-TTI 9(d))> 5 IT....
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....IR Transaction with PAN where there is no information of return filed (i) CIT(CO) to generate list of non-filers (ii) Jurisdictional AOs to issue query letters to all non-Govt. non-filers (a) if the letter is returned unserved, AOs to refer the cases to CIT(CIB) (b) If return has been filed before the date of issue of letter, then deal as at Sl. No. 1 (c) If return is filed after issue of letter/notice, compulsory scrutiny by the AO having jurisdiction, (for details refer to para 3) (d) If return is not filed or there is no response to the served query letter, notice to be issued u/s 142(1)/148 and the case to be assessed u/s 143(3)/144/147. 3. AIR Transactions without PAN Designated AOs to issue query letters in non-Govt. cases (a) If return has been filed before the issue of letter then refer to jurisdictional AO for action as at Sl. No. 1 (b) If return is filed after the issue of letter, the case shall be taken up for compulsory scrutiny by the designated or the jurisdictional AO as the case may be. (c) If there is no response to the served query letter, notice to be issued u/s 142(1)/148 and the case to be assessed u/s 144/147/143(3) as per d....
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....ice u/s 148, if any Date of assessment u/s 143(3)/ 144/ 147 Assessed Income (in Rupees) Demand raised in Rupees) (10) (11) (12) (13) (14) (15) (16) (17) JAO: Jurisdictional Assessing Officer DAO: Designated Assessing Officer Annexure 5 Proforma of query letter To, Query on transactions for financial year On the basis of Annual Information Returns (AIRs) filed for Financial Year there is information in possession of the Income-tax Department that you have entered into the following transaction(s) during the Financial Year Nature of transaction Date of Transaction Amount (Rs.) Cash deposits aggregating to Rs. 10 lakhs or more in a year in any savings account maintained in a bank. Payments made against bills raised in respect of a credit card, aggregating to Rs. 2 lakhs or more in the year. Payment of an amount of Rs. 2 lakhs or more for acquiring units of a Mutual Fund. Payment of Rs. 5 lakhs or more for acquiring bonds or debentures issued by a Company....