Processing by local office

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 Dear Sir,
In case of one of the assessee, Return for the AY 2011-12 was filed online on 27/03/2012. Return was filed u/s 44ad showing profit above @8%. Now I contacted on cpc helpline and they told me that case has been transfered to local office for processing.

As the 30 Sep. has passed and till date any notice has not been served on the assessee.
Please advise me, what is the meaning of processing at local office, whether it is scrutiny?

Thanks in advance

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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25 October 2012 As of now, the CPC, IT Dept, Bangalore is processing only salary assessees and all other cases other than salary are transferring the cases to the jurisdictional Assessing Officer based on their IT Ward / Circle for further processing for assessment procedure.
It does not mean that assessee is selected for scrutiny or any other type of assessment.

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 In the above case, even still the department can issue scrutiny notice
or
after 30-09-2012 it can not be done by department.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 When the return of income for a particular Assessment Year (AY) is filed and subsequently transferred to the local office for processing, it does not necessarily mean that the case is under scrutiny. Here’s a detailed explanation of what happens and what it means for your case:

### **1. Processing at Local Office**

**Processing at Local Office:** This typically means that the Central Processing Centre (CPC) has transferred the case to the jurisdictional Assessing Officer (AO) for further action. This could be for various reasons including:

- **Verification:** The local office might need to verify certain details or documentation.
- **Additional Information:** Sometimes additional information or clarification is required from the taxpayer.

**Not Scrutiny by Default:** Processing at the local office does not automatically imply that the case is under scrutiny. It may just be part of the routine processing of returns.

### **2. Scrutiny Notice**

**Scrutiny Process:** Scrutiny is a detailed examination of the return filed by the taxpayer. It is typically initiated if the return is selected for scrutiny based on certain criteria or if the Assessing Officer has specific reasons to question the return.

**Issuing Scrutiny Notice:** The department can issue a scrutiny notice even after the due date for filing the return has passed. The timelines for issuing such notices are generally governed by the Income Tax Act. For the AY 2011-12, the following points are relevant:

- **Time Limit for Scrutiny:** Normally, the assessment (including scrutiny) for a particular assessment year should be completed within the prescribed time limits. For AY 2011-12, the assessment should be completed by the end of the relevant assessment year plus the time limit set for completion (usually 21 months for a standard assessment or 24 months for a detailed scrutiny).

- **Notice Under Section 143(2):** A notice under section 143(2) for scrutiny should generally be issued within 6 months from the end of the relevant financial year (i.e., by September 30, 2012, for AY 2011-12). However, if there are delays or specific reasons, notices can still be issued beyond this period but within the overall assessment period.

### **3. Actions to Take**

**Monitor for Notices:** Keep an eye out for any notices or communications from the local tax office. Sometimes notices can be delayed, so it is important to stay vigilant.

**Contact Local Office:** If you have not received any communication and are unsure about the status, you can contact the local tax office directly for an update.

**Check Online Portal:** Use the Income Tax Department’s online portal to check the status of your assessment and any potential notices.

**Consult a Tax Professional:** If there are concerns or specific issues, consulting with a tax advisor or professional can help in understanding the situation better and in taking appropriate action.

### **Summary**

1. **Processing at Local Office:** This means the CPC has transferred the return for further action but does not automatically imply scrutiny.
2. **Scrutiny Notices:** Can still be issued within the assessment period, even if the initial return due date has passed.
3. **Action Steps:** Monitor for notices, contact the local office if necessary, and consider consulting a tax professional.

Keep track of any communications and be proactive in managing your case with the local tax office.