CBDT releases guidelines for compulsory selection of ITR for mandatory scrutiny during FY 2024-25

The Central Board Direct Taxes(CBDT) has released some guidelines relating to compulsory selection of Income tax returns for 100% Scrutiny during the financial year 2024-2025. The board has also notified the procedure for compulsory selection which are similar to guidelines issued for FY 2023-24

• Survey cases under section 133A shall be selected with an approval of administrative department, which would be transferred to the Central Charges within 15 days of notice served.
• Search and Seizure cases that were initiated before and after April 1, 2021 shall be selected with an approval of administrative department, which would be transferred to the Central Charges within 15 days of notice served.
• Cases with notices under section 148 shall be selected with an approval of administrative department, which would be transferred to the Central Charges within 15 days of notice served.
• Cases related to registration/approval under various sections shall be prepared and submitted for approval, transferred if it is necessary or department finds it necessary to transfer
• Cases involving addition in earlier assessment years shall be selected based on the specific criterias defined by CBDT, the notice shall be served through National faceless assessment center (NaFAC)
• Cases related to specific information regarding tax-evasion: Prepared and submitted for approval, notice served through NaFAC.

Communication and Handling

Cases selected for compulsory scrutiny by International Taxation and Central Circle charges handled by respective units, while those cases which are not covered under search and seizure actions may not require transfer to Central Charges.

Selection and Transfer of Cases

• Cases that comes under above scenarios will be selected by department and shall be transferred for faceless assessment to NFAC by May 31, 2024
• Service of Notice under Section 143(2): Notice under section 143(2) of the Act to be served in cases selected for Compulsory Scrutiny by June 30, 2024

Clarifications for the notification

• Cases which are selected as per the information via NMS Cycle/AIS/SFT/CPC-TDS shall not be taken up for compulsory scrutiny, shall be handled through CASS cycle.
• Non-search cases or cases not related to search under section 132 of Income tax act may also be centralized under section 127 of the IT Act, 1961 based on certain criteria.

Source: NOTIFICATION F.NO.225/72/2024IITA-II
Also Read: CBDT Releases Guidelines for Compulsory Scrutiny of Income Tax Returns in FY 2024-25

The author can also be reached at aman.rajput@mail.ca.in