Important Guidelines for Compulsory Scrutiny of Returns for FY 2024-25

Administrative Approval and Transfer Process

Emphasizing the importance of administrative approval before selecting a case for scrutiny, the guidelines mandate obtaining prior authorization from appropriate authorities. Furthermore, cases, particularly those stemming from surveys or search and seizure actions, are required to be transferred to Central Charges within 15 days of notice issuance under the relevant sections of the Income Tax Act.

Handling of Returns and Notices

Instructions provided in the guidelines elucidate the process of forwarding cases to the National Faceless Assessment Centre (NaFAC) and serving notices. Notably, returns filed in response to notices under section 142(1) based on specific information sources like the NMS Cycle or AIS will not automatically undergo compulsory scrutiny but may be selected through the CASS cycle.

Timelines and Compliance

The document outlines strict timelines for various actions, including the selection and transfer of cases to NaFAC and the issuance of notices under section 143(2). Notably, a significant deadline highlighted is June 30, 2024, for serving notices for returns filed in the Financial Year 2023-24. The guidelines conclude by mandating the dissemination of instructions for necessary compliance and referencing earlier guidelines on the transfer or centralization of non-search cases under section 127 of the Income-tax Act.