CBDT issues instructions for uploading information on VRU functionality

CBDT issues instructions for uploading information on VRU functionality

It relates to the insight portal for implementation of risk management strategy for issuance of notice

The Central Board of Direct Taxes (CBDT) has issued instructions for uploading information on Verification Report Upload (VRU) functionality on the insight portal for implementation of risk management strategy for issuance of notice.

As per the amended provisions of the Income-tax Act, 1961, the information that has escaped assessment has been defined to include the two categories of information. One, which is flagged in accordance with the risk management strategy formulated by the Board. Two, the final audit objection raised by C&AG.

For effective implementation of risk management strategy, CBDT directed that the assessing officers (AOs) shall identify the following categories of information pertaining to the Assessment Year 2015-16 and Assessment Year 2018-19, which may require action under the IT Act for uploading on the VRU functionality on insight portal.

It meant the information from any other government agency/law enforcement agency, information arising out of internal audit objection, which requires action under the IT Act, information received from any IT Authority, including the AO, information arising out of search or survey action, information arising out of Foreign Tax and Tax Research (FT&TR) references, information arising out of any order of the court, appellate order, order of National Company Law Tribunal (NCLT) and/or order of the IT Act, having an impact on income in the assessee's case or in the case of any other assessee, cases involving addition in any assessment year on a recurring issue of law or fact.

As per the provisions of the IT Act, in specific cases where the AO has in his possession evidence that reveal the income escaping assessment, represented in the form of asset, amounted to or is likely to amount to Rs.50 lakh or more, notice can be issued beyond the period of three years but not beyond the period of 10 years from the end of the relevant assessment year.

Further, the notice under the IT Act cannot be issued at any time in a case for the relevant assessment year beginning on or before the first day of April 2021. As per the explanation provided under the Act, the term "asset" would include immovable property, being land or building or both, shares and securities, loans and advances and bank deposits.