CBDT’s Guidelines for compulsory selection of returns for Complete Scrutiny during FY 2025-26; Procedure for compulsory selection in such cases

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CBDT Guidelines

The CBDT issued Guidelines vide F. No. 225/37/2025/ITA-II dated June 13, 2025 for FY 2025–26 outline parameters for compulsory income tax scrutiny. Returns selected include cases involving surveys (post 01.04.2023), search and seizure/requisition (till 01.04.2025), revoked tax-exempt registrations, recurring past additions, and specific tax evasion intel. Notices under relevant sections must be issued promptly, with cases transferred to Central Charges where applicable. Exceptions include returns filed in response to certain automated notices, which follow the CASS cycle. International Taxation and Central Circle charges will handle their own cases. The deadline for issuing scrutiny notices for FY 2024–25 returns is 30.06.2025, ensuring standardized and timely assessment procedures.

  1. Purpose and Scope: The document outlines the compulsory parameters and procedures for selecting income tax returns for complete scrutiny for the Financial Year 2025-26. The guidelines are intended for uniform implementation by all field officers and authorities within the Income Tax Department of India.
  2. Survey Cases (CS01): Returns related to surveys conducted under Section 133A (excluding 133A(2A)) post 1st April 2023 are to be compulsorily scrutinized. The Directorate of Income-tax (Systems), Delhi, will select these cases, and notices under Section 143(2) will be issued accordingly. Transfers to Central Charges must occur within 15 days of the notice if required.
  3. Search & Seizure/Requisition Cases (CS02 & CS03): Cases involving searches or requisitions under Sections 132/132A conducted between 01.04.2023 and 01.04.2025 are subject to scrutiny. Those before 01.09.2024 require administrative approval and transfer to Central Charges. Post 01.09.2024 cases are handled similarly with jurisdictional responsibility for serving notices.
  4. Registration-Related Cases (CS04): Entities claiming tax exemptions or deductions under sections like 12A, 12AB, or 10(23C) but whose registrations were cancelled/withdrawn before 31.03.2024 are to be selected for scrutiny. Exemptions where cancellation has been overturned on appeal are excluded. Notices are issued through the NaFAC.
  5. Recurring Additions in Past Assessments (CS05): If a taxpayer has recurring additions exceeding ₹50 lakh in metro areas or ₹20 lakh elsewhere on legal or factual issues (even involving transfer pricing) that were upheld or not appealed, the case must be scrutinized. AOs prepare lists and obtain approval before forwarding them to the Directorate of Income-tax (Systems).
  6. Tax Evasion Information Cases (CS06): Returns filed by assessees based on specific tax evasion information from enforcement agencies must be scrutinized. AOs are required to upload supporting documents for such cases immediately. These are reviewed and acted upon by jurisdictional authorities.
  7. Exceptions and CASS Cases: Returns filed under Section 142(1) in response to information from the NMS cycle, AIS, SFT, or CPC-TDS will not be scrutinized under the compulsory criteria. Instead, they are subject to selection under the regular Computer Assisted Scrutiny Selection (CASS) mechanism.
  8. Issuance of Notices: Various cases including those where notices under Sections 148 or 142(1) have been issued must have notices under Sections 143(2)/142(1) served via NaFAC or transferred to Central Charges as per the nature of the case. Special instructions are included for handling cases arising from searches involving third parties.
  9. International Taxation and Central Circle Instructions: These specialized units will handle their respective cases as per the prescribed parameters with prior administrative approval. However, such cases are not to be routed through NaFAC and will be handled directly by the respective charges.
  10. Compliance and Deadlines: The statutory deadline for issuing notices under Section 143(2) for ITRs filed in FY 2024-25 is 30th June 2025. All field officers and authorities are instructed to adhere to the timeline and procedures set forth in the guidelines for smooth and standardized enforcement.

The Guidelines can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/06/Compulsory-scrutiny-guidelines_FY-2025_26_13.06.2025.pdf

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