DIRECTORATE OF INCOME TAX (SYSTEMS)

F. No.: CIT(e-Verification)/2023-24/FVR/Instr./

Date: 01.03.2024

e-Verification Instruction No. 2 of 2024

To,

All Pr. Chief Commissioner(s)/Pr. Director General(s) of Income Tax

All Chief Commissioner(s)/Director General(s) of Income Tax

All Commissioner(s)/Pr. Director(s) of Income Tax

All Commissioner(s)/Director(s) of Income Tax

Sub: Instructions to the AO’s for initiating proceedings u/s 147 of I.T. Act, 1961 in e-Verification cases-reg.

Kindly refer to the CBDT’s Notification No. 137/2021/F. No. 370142/57/2021-TPL(Part-1) dated 13.12.2021 notifying the e-Verification Scheme, 2021.

2. Vide afore mentioned Notification, the Central Government has notified the e-Verification Scheme, 2021 in accordance with the provisions of Section 135A of the Income-tax Act, 1961. Accordingly, High Risk Cases related to Assessment Year 2020-21 have been verified by the Prescribed Authority under the scheme and submitted a Preliminary Verification Report (PVR) estimating the Income Escapement. As per Clause 4(9) of the e-Verification Scheme-2021, CIT e-Verification has matched the Preliminary Verification Report with the latest Income Tax Return to prepare the Final Verification Report (FVR) wherein Value at Risk (VaR) has been arrived at.

3. Based on Value at Risk, certain High Risk Cases have been identified for reopening under section 147 of the Act. These cases are made available to the Assessing Officer under clause (iv) of Explanation 1of section 148.

4. In view of the clause (d) to the Proviso of the Section 148A of the Act, the Assessing Officer is not required to issue Notice under section 148A of the Act in these cases. The Assessing Officer may proceed to get the approval of the Specified Authority for issuing notice u/s 148 in such cases as per 1st proviso to Sec 148 of the Income-tax Act, 1961.

5. All proceedings carried out by the Prescribed Authorities and documents submitted by the taxpayer during the e-Verification procedure have been made available to the Assessing Officer who may view the same under e-Verification module in Insight portal. The user may navigate the path Insight Portal >> Verification Module >> e-Verification (Taxpayer) >> e-Verification Scheme 2021>>Verified>>Count

6. Value at Risk shown in the FVR is an estimated value arrived during verification under the e-Verification Scheme, 2021 formulated by the Central Government in accordance with the provisions of Section 135A of the Income-tax Act, 1961. During the course of assessment, the AO is advised to draw his own conclusion based on the material gathered in the course of e-Verification Procedure.

7. In view of the above, the respective Assessing Officers are advised to invoke provisions of section 147 of the Act and issue Notice u/s 148 of the Act accordingly in such e-Verification cases. To initiate proceedings u/s 147 of the Act, the path is as under: - Insight Portal >> Verification Module >> e-Verification (Taxpayer) >> High Risk - e-Verification Scheme>> Under Verification>>count.

8. Quick Reference Guide for 'High Risk e-Verification Scheme' Cases is available on Insight Portal for the assistance of the Users.

This issues with the prior approvable of the DGIT(Systems), New Delhi

Sd

(Sanjay Joseph)

CIT(e-Verification)

Directorate of Systems, New Delhi

Quick Reference Guide for 'High Risk e-Verification Scheme' Cases (March - 24)