DeMO: I-T begins final assessment of 87,000 suspicious deposit cases

The Income Tax Department has launched the final assessment of 87,000 cases in the country for making suspicious deposits post demonetisation, as the taxman has been authorised to exercise the 'best judgement' protocol, the CBDT has said.

A standard operating procedure (SOP) was issued by the CBDT in this context on March 5 and it has asked the department to conclude this exercise by the end of the current financial year in March and "in any case" by June 30.

The SOP states that while the taxman initially sent notices (under section 142(1) that pertains to inquiry before assessment) in 3 lakh cases, 87,000 out of these have "not filed their return of income" for assessment year 2017-18.

The Central Board of Direct Taxes (CBDT) that frames policy for the tax department has asked the assessing officers (AOs) to use the 'best judgement assessment' procedure as stipulated under section 144 of the I-T Act to finalise these cases.

The section essentially reads: "If any person fails to comply with all the terms of notice issued under section 142(1), the AO after taking into account all relevant material which the AO has gathered shall after giving the assessee an opportunity of being heard, make the assessment of total income or loss to the best of his judgement..."