Clarification on Information Uploads Related to Risk Management Strategy

The Central Board of Direct Taxes (CBDT) has issued an Office Memorandum (OM) dated February 27, 2025, under reference F. No. 299/44/2022-Dir (Inv. III)/1761. This memorandum clarifies the processes involved in uploading information on the CRIU/VRU functionalities concerning the Risk Management Strategy (RMS).

According to the announcement, any information resulting from searches or surveys conducted between April 1, 2021, and September 1, 2024, does not necessitate the application of RMS. Instead, this information should be sent directly to the Jurisdictional Assessing Officer (JAO) rather than being uploaded onto the CRIU/VRU platform. Furthermore, any information that has already been uploaded must be forwarded to the JAO by March 10, 2025. This directive aims to ensure compliance with the existing provisions of Sections 147 to 151 of the Income-tax Act, 1961, as per the Finance (No. 2) Act, 2024.

In an earlier OM issued on January 11, 2023, under F. No. 225/135/2021/1TA-II (Part-I), the CBDT provided guidance for the uploading of information regarding VRU/CRIU/STR feedback functionalities for assessment years involving escape of income, thereby necessitating action under Section 147 of the Income-tax Act. This OM categorized cases that included information arising from search or survey actions. Subsequently, in another OM dated January 12, 2024 (F. No. 299/44/2022-Dir (Inv. III/1264)), it was reiterated that information covered under Explanation 2 to Section 148 of the Income-tax Act, including information resulting from Search and Survey cases, does not require uploading on CRIU/VRU. Thus, these cases should likewise be directed to the JAO for action.

With the amendments implemented via the Finance (No. 2) Act, 2024, especially concerning Sections 148, 149, 151, and 152, several queries have arisen from field formations regarding the applicability of the aforementioned OM from January 12, 2024. The Board has thoroughly examined these queries and provided clarification through the following points:

Applicability of Provisions under Section 152

Sub-section (3) of Section 152 explicitly states that:

  • If a search is initiated under Section 132 or requisition is made under Section 132A, or a survey occurs under Section 133A (excluding those under sub-section (2A)), between April 1, 2021, and September 1, 2024, the provisions of Sections 147 to 151 will apply as they did before the Finance (No. 2) Act, 2024.

The unamended provisions apply when:

  1. A search is initiated under Section 132 or requisition under Section 132A within the specified date range.
  2. A survey is conducted under Section 133A within the specified date range.
  3. The Assessing Officer, with prior approval from the Principal Commissioner or Commissioner, determines that seized or requisitioned assets belong to an assessee within the defined dates.
  4. The Assessing Officer, also with appropriate approvals, finds that relevant records or information pertain to the assessee from actions taken against another individual.

Consequently, any situation defined above suggests that the Assessing Officer now possesses information indicative of income that has escaped assessment. Therefore, this information is not required for uploading on the CRIU/VRU functions as it does not necessitate RMS execution. Rather, it should be forwarded to the JAO for further necessary action.

Timelines and Further Instructions

If the information related to the cases mentioned previously has already been uploaded onto the CRIU/VRU by any officer, including officers in the Directorates of Investigation, it must also be sent directly to the JAO. Supervisory authorities are tasked with ensuring that this process is completed on time, specifically by March 10, 2025. This timeline provides JAOs with adequate opportunity to undertake any required actions per the provisions of the Income-tax Act.

The memorandum further instructs that any other essential information which necessitates uploading on the CRIU/VRU for RMS execution should be done promptly to allow the field officers sufficient time for timely action.

This directive has been issued with the approval of the competent authority.