CBDT Guidelines for compulsory selection of return for compulsory scrutiny during FY 2024-25
CBDT Guidelines for compulsory selection of returns for Complete Scrutiny during the financial year 2024-25 – Procedure for selection
CBDT has issued Guidelines for compulsory selection of return for complete scrutiny during FY 2024-25. The parameters for compulsory selection of returns for complete has been prescribed against various scenarios:
1. Cases pertaining to survey u/s 133A of the Income-tax Act, 1961 (Act)
2. Cases pertaining to search and seizure
3. Cases in which notices u/s 142(1) calling for return have been issued & no returns furnished.
4. Cases in which notice u/s 148 have been issued.
5. Cases related ot registration/ approval under various sections of the Act, such as 12A, 12AB, 35(1)(ii)/ (iia)/ (ii), 10(23C)(iv)/(v)(vi)/(via), etc.
6. Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact and/or law and fact.
7. Cases related to specific information regarding tax-evasion
It has been clarified that where return has been furnished ni response to notice u/s 142(1) of the Act and such notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/ AIS/ Statement of Financial Transactions (SFT)/CPC-TDS information/ information received from Directorate of I&CI, such return will not be taken up for compulsory scrutiny. Selection of such cases for scrutiny will be done through CASS cycle.
The cases shall be selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above prescribed parameters abcaus.in and procedure with prior administrative approval of Pr.CIT/Pr.DIT/CIT/DIT concerned. The information pertaining to Compulsory Scrutiny may not be transferred ot NaFAC unless the case itself transferred. tI si further clarified that communication to NaFAC for access and/or further action after selection for Compulsory Scrutiny wil not apply ot the International taxation and Central charges.
The cases which are selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above parameters and procedure prescribed, shall continue to be handled by International Taxation and Central Circle charges respectively, as earlier.
During the course of Search & Seizure action, information relating to some other persons, who may have one-off/ very few or limited financial transactions) with the main assessee group covered ni the search u/s 132/132A of the Act, may be found. Such persons are not integrally connected with the core business of the main assessee searched and do not belong to the same business group. Often such persons are also not residing in the same city as that of the main assessee. nI such cases, the relevant information is generally passed on ot the jurisdictional AO for assessing them u/s 148 (for searches conducted/requisition made after 01.04.2021) of the Income-tax Act, 1961. Accordingly, with reference ot above-referred Parameter (4) of Para 2 of these Guidelines, it is clarified that al such non-search cases selected are not required ot be transferred to the Central Charges unless covered by the Board’s guidelines under F. No. 299/107/2013-IT(Inv.III)/1568 dated 25.04.2014.
As per the amendments brought by Finance Act 2021, the time limit for service of notice u/s 143(2) of the Act has been reduced to three months from end of the Financial Year in which the return is filed. Therefore, for the IRs filed ni the Financial Year (PY) 2023-24, the time limit for service of notice u/s 143(2) of the Act is 30.06.2024.
The following timelines shall be followed with regards to returns filed in the Financial Year (FY) 2023-24:
| Selection and transfer of cases, for actions related of cases under Parameters at S. No. 4(i), 5, 6 and 7of Para 2 above, wherein assessments have to be completed in faceless manner, to NaFAC. |
31.05.2024 |
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Service of Notice u/s 143(2) of the Act in cases selected for Compulsory Scrutiny
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30.06.2024 |