In order to ensure thorough examination of tax returns and compliance with tax laws, the following guidelines have been established for the compulsory selection of returns for complete scrutiny during the financial year 2024-25. These procedures outline specific parameters and steps to be followed by tax authorities for effective scrutiny. Each parameter is accompanied by a clear procedure, with key checkpoints highlighted for adherence. Additionally, special instructions and timelines for returns filed in FY 2023-24 are provided for better understanding and implementation. It is imperative for all relevant authorities to familiarize themselves with these guidelines and ensure their strict compliance.
| S. No. | Parameter | Procedure for Compulsory Selection |
|---|---|---|
| 1 | Survey Cases (Section 133A) | Procedure: Obtain approval from Pr.CIT/Pr.DIT/CIT/DIT. Transfer cases to Central Charges within 15 days after notice is served. Check Points: Approval obtained from higher authority. Transfer completed within stipulated time frame. For International Taxation and Central Circle charges, see details below. |
| 2 | Search and Seizure Cases | Procedure: Secure approval from Pr.CIT/Pr.DIT/CIT/DIT. Within 15 days after notice, transfer cases to Central Charges. Details: - For cases before 1-4-2021: Use Section 153C with Section 143(3). - For cases after 1-4-2021: Follow updated rules. - If no return filed, issue notice u/s 142(1). Check Points: Approval obtained from higher authority. Timely transfer of cases. |
| 3 | No Return Filed (Section 142(1)) | Procedure: Upload documents on ITBA by JAO. Directorate of Income-tax forwards to NaFAC for further action. Check Points: Complete document upload by JAO. Forwarding to NaFAC initiated promptly. For International Taxation and Central Circle charges, see details below. |
| 4 | Notices Issued (Section 148) | Procedure: - For post-1-4-2021 search/survey: Obtain approval and transfer cases to Central Charges within 15 days. - For other cases: JAO uploads documents, Directorate forwards to NaFAC, notice served through NaFAC. Check Points: Approval obtained for post-1-4-2021 cases. Documents uploaded by JAO. Timely service of notice. For International Taxation and Central Circle charges, see details below. |
| 5 | Registration/Approval Issues | Procedure: Prepare list with approval by JAO. Send list to Pr.CCIT and then to Directorate of Income-tax. Serve notice through NaFAC. Check Points: List prepared with proper approval. Forwarding of list completed promptly. Notice served through correct channel. |
| 6 | Recurring Issues | Criteria: - Issues exceeding Rs. 25 lakh in metro areas or Rs. 10 lakh in non-metro areas. - Additions final or upheld in favor of Revenue. Procedure: JAO prepares list with approval. List sent to Pr.CCIT and then to Directorate of Income-tax. Notice served through NaFAC. Check Points: List prepared according to specified criteria. Proper channels followed for forwarding. Notice served as per protocol. |
| 7 | Specific Information on Tax Evasion | Procedure: Prepare list with approval by JAO. Send list to Pr.CCIT and then to Directorate of Income-tax. Notice served through NaFAC. Check Points: List compiled accurately. List forwarded to higher authorities without delay. Notice dispatched through designated channel. |
Special Instructions
- Para 3: Returns filed due to NMS Cycle/AIS/SFT/CPC-TDS info will not be scrutinized automatically. Selection is through CASS cycle.
- Para 4: International Taxation and Central Circle cases follow these rules but do not need to transfer to NaFAC unless the case is moved.
Timelines for Returns Filed in FY 2023-24
| Action | Last Date |
|---|---|
| Transfer of cases to NaFAC for parameters 4(ii), 5, 6, and 7 | 31-5-2024 |
| Service of Notice u/s 143(2) | 30-6-2024 |
These guidelines should be followed by all concerned authorities.
