Paras 63.7 and 63.8 of 2022 GN pertained to clause 32(a) but were misprinted under clause 32(b). The 2023 GN deletes Paras 63.7 and 63.8 from under clause 32(b) and inserts them under clause 32(a) as New Paras 62.4 to 62.6. New Paras 62.4 to 62.6 of 2023 GN require as under:
(a) In case any undisclosed income is determined in case of an assessee during any proceedings of search, requisition or survey, then no adjustment or set-off shall be allowed against such undisclosed income.
(b) The set-off shall not be available in case of both brought forward losses as well as unabsorbed depreciation.
(c) The Tax Auditor has to confirm and verify whether any search or survey has taken place or is undergoing based on the records of assessment proceedings of the assessee and accordingly check if any undisclosed income has been determined in the case of the assessee.
(d) The eligibility of brought forward losses and unabsorbed depreciation against such undisclosed income as computed by the assessee should be checked and, based on that, the necessary adjustments should be made to losses to be carried forward by the assessee.
(e) The tax auditor should make appropriate disclosure in the “Remarks” column of the annexure provided for clause 32(a) of Form 3CD. In case the utility of Form 3CD does not have a specific column for such reporting, the tax auditor, if deemed fit, can provide a note/qualification in Para 3 of Form 3CA/Para 5 of Form 3CB in this regard.
(f) Any assessment, rectification, revision or appeal proceedings pending at the time of tax audit have to be disclosed in the remarks column by way of information.