(a) In respect of the non-PAN cases, the data has been or shall be sent (by Directorate of Systems) in CDs to the 18 Cadre Controlling CCsIT (based on addresses of the transacting parties as given in the AIR) along with the party-wise details of transactions contained in the AIR and the information source.
(b) The CCsIT shall sort and pass on the AIR information to the designated Assessing Officers (DAOs) [as
notified by the Cadre Controlling CCsIT in terms of pare 10(d) of the instruction no. 6 of 2006]. The DAOs shall issue query letters thereon (in the format as gives in Annexure 5) to all Non-Govt. transacting parties. If,
on the basis of reply to the letter, it is found that the person is an existing assessee, the letter along with the
reply/return and the AIR information should be transferred by the designated Assessing Officer to the jurisdictional Assessing Officer, who shall deal with these cases as follows:
(i) issue notice u/s 142(1) to such assessee, if the assessee has not filed a return earlier for the relevant
assessment year.
(ii) if return is filed in response to the query letter or in response to the notice issued u/s 142(1), the jurisdictional Assessing Officer shall assess the case u/s 143(3)/144.
(iii) if return was filed prior to issue of the query letter, the jurisdictional Assessing Officer shall manually apply
such criteria (as per Annexure 1) to select such cases for scrutiny.
(iv) Where no return has been filed either prior to or after issue of query letter/notice u/s 142(1) or where the
time for issuance of notice u/s 143(2) has expired, the jurisdictional Assessing Officer may consider issuance of notice u/s 148 as per law, after recording reasons therefor, if he/she has reasons to believe that income has escaped assessment.
(c) Where the person is not an existing assessee (has never filed a return of income earlier) or does not respond to the served letter, the designated Assessing Officer shall assess the case u/s 144/147/ 143(3), after issuance of notice u/s 142(1)/148/143(2), as the case may be, as per due process of law.
(d) The designated Assessing Officer and the jurisdictional Assessing Officer shall maintain a register of action
taken on such AIR information in the format as per Annexure 4, which should be inspected every quarter by
the Range head and the CIT concerned.
(e) After issuance of notice u/s 143(2)/148, as the case may be, the Assessing Officers shall forward a list of
such cases, along with value of criterion, to their Range Addl./Joint Commissioner for the purpose of monitoring.
(f) The designated Assessing Officers shall take all possible steps to locate and serve the query letter and
subsequent notice, if required. In case the letter is returned unserved or if the assessee is not traceable at the
address mentioned in the AIR, he shall send full details (including the RRR No. and Line No. of the AIR
transaction, name and address of the AIR filer etc.) to the DIT (CIB) of his Region who shall contact the AIR
filer for getting the correct address of the assessee. The DIT (CIB) shall, after obtaining the correct address,
intimate the same to the designated Assessing Officer for taking further action. In this regard, DIT (CIB) may
also consider invoking the provisions of Section 285BA(4) and Section 271FA.
