Guidelines for Handling High-Risk Transaction Cases in Income Tax Assessments

Introduction

The Directorate of Income Tax (Systems) has identified cases for assessment under Sections 148 and 148A of the Income Tax Act, 1961, focusing on high-risk transactions. These cases, selected through the Risk Management Strategy (Cycle-5), cover assessment years (AY) 2019-20 to 2021-22 and have been allocated to field officers via the Insight Portal’s Verification Module. This communication outlines the procedures and access rights related to these high-risk cases.

High-Risk Transaction Cases Overview

The identified cases are categorized as follows:

• High-Risk Transactions - Assigned to Joint Assessing Officers (JAO)
• High-Risk Transactions (Non-PAN) - Assigned to Principal Chief Commissioners of Income Tax (Pr.CCIT)

Accessing Case Details

To access case details, users can navigate through the Insight Portal as follows:

1. Login to the Insight Portal.
2. Select the Verification Tab from the sidebar.
3. Go to Verification Under Taxpayer Verification to view the Case Summary.

Case Summary and List View

In the Case Summary view, users can see the financial year-wise distribution of case types assigned to them.

• Click on the count next to "High Risk Transaction" to view the specific cases assigned.

In the Case List view, users will encounter a list of assigned cases. Selecting "View Detail" will direct them to the specific Case Detail page.

Case Detail View

The Case Detail page provides comprehensive information about the verification issues present. Users can perform various activities by selecting the "Select Activity" option.

Performing Case Level Activities

The following activities can be undertaken within the case view:

No Action Required

• If the user determines that no action is necessary after investigation, they may select this option. Remarks and supporting documents must be attached to finalize the activity.

Reassign Case

• To reassign a case within the hierarchy, users can utilize the "Reassign Case" activity, adding remarks and selecting the appropriate user from the dropdown menu.

Initiate Reference

• Should users need to initiate a reference for the Verification Unit, they can provide the required details and submit for appropriate authority approval.

Initiate Proceedings under Sections 148/148A

Follow these steps to initiate proceedings:

1. Access the High Risk CRIU/VRU Information cases.
2. Select the case activity to Initiate Proceedings u/s 148.
3. Fill in necessary details (Compliance Days, Address, Selection Reason).
4. Click Submit to create a worklist entry on ITBA.

Viewing Case Details on ITBA Portal

To check case details on the ITBA Portal:

1. Log in at www.itba.incometax.gov.in.
2. Navigate to the Assessment module.
3. Select Cases for Scrutiny and input '148' for notice type and 'Insight' for source.

Activity History

Users can view the history of activities performed in a case under the Activities Tab on the Case Detail Page. Each Activity ID is hyperlinked, allowing users to access detailed read-only views of all activities and related documents.

Conclusion

This guidance outlines the necessary protocols for handling high-risk transaction cases under the Income Tax Act, 1961. Officers are encouraged to utilize the Insight Portal efficiently to ensure compliance with the relevant provisions and facilitate the assessment process.