The Central Board of Direct Taxes (CBDT) notified the instructions regarding handling of Non-PAN cases flagged by the Directorate of income tax (Systems).
The CBDT via letter dated March 4, 2021 wherein it was directed that Potential cases including the Reports of Directorate of Income-tax (Investigation), Reports of Directorate of Intelligence and Criminal Investigation and cases of Non-Filer Management System (NMS) and other cases shall be flagged by the Directorate of Income tax (Systems) as per risk profiling for consideration of issue of notice under section 148 of the Income tax Act, 1961 as per provisions of the Act.
The letter also involved non-PAN cases, having only the name and address of the assessees. These non-PAN cases have been pushed by Systems to respective Pr. CCIT/Pr. CIT based on address.
Considering the time involved in allotting PAN in such non-PAN cases and other technical issues involved in generating notices through the system, various instructions have been issued for handling of such non-PAN cases.
Firstly, as per the provisions of the Act, if the case is fit for issue of notice under section 148 of the Act, such notice can be issued manually without DIN by invoking exceptional clause provided at Para No.3(iv) of CBDT’s Circular No. 19/2019 dated August 14, 2019, after following the procedure prescribed in Para No.3 of the said Circular.
Secondly, immediately after the issuance of notice under section 148 of the Act, the Jurisdictional Assessing Officer (JAO) shall collect the basic parameters needed for allotment of PAN from assessee, reporting entities or any other sources. In all possible cases, where the basic parameters are gathered, the JAO shall take up the matter with Directorate of Income-tax (Systems) for allotment of PAN as per the instructions regarding allotment of PAN, issued by it from time to time.
Lastly, all such manually issued communication shall be uploaded on the System at the earliest with DIN, as far as possible.
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