CBDT had launched the “Operation Clean Money (OCM) to check black money post demonetization and have given deadline to assessing officers for completion of assessments in Operations Clean Money cases by end of the July.
As per Operation Clean money, Assessing officers need to assure and provide to CBDT,
The information regarding the addresses, bank accounts and the transaction details of these 87,000 individuals and entities who have made “substantial cash deposits during the demonetisation period shall be provided with its technical and data mining.
While framing the assessment of the entities, the AOs should also make a “detailed analysis of past Income Tax Returns, if available and form an opinion regarding the nature of transactions related to demonetisation”
It had asked the assessing officers to use the ‘best judgement assessment’ procedure as per Section 144 of the I-T Act to finalize these 87,000 cases.
After the scrutiny assessments, once the “ultimate beneficiary of a transaction has been found”, the AO should forward this assessment to the jurisdiction officer who has jurisdiction over the entity.
“During the course of assessment proceedings, when all material and evidences are gathered by the AO, assessee would be duly provided with an opportunity to explain his/her case,”
The range heads, officers in the ranks of principal chief commissioners and chief commissioners of the department were also asked to “monitor” the framing of the final assessment order of these entities.
However, A petition was filed by the assessing officers (AOs) of the Income Tax Department to the Central Board of Direct Taxes (CBDT) to extend the deadline, by saying that it was not possible to finish the task by July as it requires a lot of ‘paperwork and manpower’.
Also, the number of OCM cases are huge ad Assessing officers are required to perform daily routine work including completion of normal scrutiny cases.
While considering the various difficulties faced by the Assessing officers, CBDT has extended the deadline by another two months till September to complete the final assessment of about 87,000 entities across the country who made suspicious deposits post-demonetisation.
Therefore, CBDT issued order as “The timeline for completion of assessment in such OCM cases is hereby extended and it should be completed by September 30”.