CBDT issued Guidelines vide F.No.225/72/2024IITA-II dated May 03, 2024 for compulsory selection of returns for Complete Scrutiny during the Financial Year 2024-25 and procedure for compulsory selection in such cases.

  1. Compulsory Scrutiny Guidelines Issued: The Central Board of Direct Taxes (CBDT) released guidelines on May 3, 2024, outlining the criteria and procedures for the compulsory selection of tax returns for Complete Scrutiny for the Financial Year 2024-25. These guidelines are detailed in a document sent out to Chief Commissioners and Directors General of Income-tax across India.
  2. Criteria for Selection: The document describes several parameters for compulsory selection, including cases related to surveys under section 133A, search and seizure actions, instances where notices under section 142(1) have been issued with no returns furnished, cases involving specific tax evasion information, and instances of recurring issues of fact or law leading to significant additions in earlier assessment years.
  3. Administrative Approval and Transfer Process: It emphasizes the necessity for prior administrative approval from appropriate authorities before selecting a case for scrutiny. Post-approval, certain cases, especially those related to surveys or search and seizure, must be transferred to Central Charges within 15 days of notice issuance under respective sections of the Income Tax Act.
  4. Handling of Returns and Notices: Instructions specify how and when to forward cases to the National Faceless Assessment Centre (NaFAC) and serve notices. Notably, returns filed in response to notices under section 142(1) due to specific information sources like NMS Cycle or AIS will not automatically be taken for compulsory scrutiny but may be selected through the CASS cycle.
  5. Timelines and Compliance: The document sets deadlines for actions such as the selection and transfer of cases to NaFAC and the issuance of notices under section 143(2), with a significant deadline being June 30, 2024, for service of notice for returns filed in the Financial Year 2023-24. It concludes by mandating that the instructions be disseminated for necessary compliance and provides references to earlier guidelines on the transfer or centralization of non-search cases under section 127 of the Income-tax Act.
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