Deadline set for assessment of 87000 non-filers under demonitisation

Central Board of Direct Taxes has set a deadline of March 31 or latest by June 30 for completing assessment of 87,000 non-filers who made “substantial cash deposits” in their bank accounts following demonetisation in November 2016.

The tax department had served notices to around 3 lakh depositors, out of which 87,000 have not filed their returns in response to the notice issued under Section 142 (1) of the Income-tax Act.

In a missive to its field formations, the Board has asked assessing officers to “endeavour to identify possible addresses of the assessee” and to proceed with best judgment assessment under Section 144 of the Act. Rakesh Nangia, managing partner, Nangia Advisor said this is to ensure a faster closure of these cases and also to recover the taxes due in these cases.