CBDT issues notification on selection of cases for tax scrutiny.


CBDT issues notification on selection of cases for tax scrutiny.


The Central Board of Direct Taxes (CBDT), earlier this month, issued a notification on the process of scrutiny of income tax returns (ITR) of taxpayers. Under the new guidelines, taxpayers can know why their ITRs have been shortlisted for scrutiny or closer examination for FY 2024-25. The CBDT has also outlined a number of cases that would be taken up.

Guidelines for selection of cases:

1.  Survey Cases Under Section 133A: The matter that emerges via the surveys directing to tax evasion detection shall be investigated. Approval from the administration is needed in this case and is to get transferred to Central Charges within 15 days of notice issuance.

2.  Search and Seizure: U/s 153C the matters concerning search and seizure are selected for scrutiny, with crucial approvals and centralization within 15 days of notice.

3.  Non-filing of I-T Returns: Cases in which no return has been submitted in reply to a notice under section 142(1) will be scrutinized. Jurisdictional Assessing Officers (JAOs) are accountable for uploading appropriate documents for further action by the National Faceless Assessment Centre (NaFAC).

4.  Cases related to specific information regarding tax evasion

There are two parameters to select these cases for complete scrutiny. These are:

Specific information pointing out tax evasion for the relevant assessment year is provided by any law enforcement agency, and

The ITR for the relevant assessment year is furnished by the taxpayer.

5.  Procedure: The jurisdictional AO shall prepare a list of cases under the above-mentioned parameters with prior approval of the Principal Commissioner of Income tax/Principal Director of Income tax/ Commissioner of Income tax/ Director of Income tax concerned. The consolidated list of such cases shall be submitted to the concerned Principal Commissioner of Income tax who in turn will submit the list to the Directorate of Income-tax (Systems)

(CBDT guidelines dated 3rd May, 2024)

The copy of the order is as under: