The Central Board of Direct Taxes (CBDT) has asked the taxman to go over with a fine toothcomb scrutiny on cases where a taxpayer has filed a revised income tax return (ITR) post demonetisation and directed them to slap "higher tax rate" in instances where
black money is detected.
The policymaking body has issued at wopage instruction/directive to all regional chiefs of the IT department on November 24, stipulating the way forward while assessing scrutiny cases selected for suspicious financial activity, post note ban. "Unaccounted
income so assessed in scrutiny assessment is liable to be taxed at a higher rate without any set off losses, expenses etc. under section 115BBE (treatment of tax credits) of the IT Act," the CBDT instructions said. The instructions, accessed by PTI, also ask
the taxman that claim of "enhanced sales (especially by business category of taxpayers) may be compared with the central excise/VAT returns."- www.business-standard.com [27-11-2017]