CBDT Guidelines for Compulsory Scrutiny Selection FY 2025–26: Criteria & Procedure
By Author | June 14, 2025 | CBDT Guidelines
The Central Board of Direct Taxes (CBDT) has issued detailed guidelines (F. No. 225/37/2025/ITA-II dated June 13, 2025) outlining the compulsory scrutiny criteria for Income Tax Returns (ITRs) for Financial Year 2025–26. These aim to ensure uniform implementation across field offices and authorities.
🔍 Purpose of the Guidelines
The guidelines define procedures for selecting cases for complete scrutiny. They cover situations involving:
- Tax surveys
- Search and seizure
- Cancelled exemptions
- Repeated past additions
- Specific tax evasion intelligence
Authorities must issue scrutiny notices under Section 143(2) or other applicable sections and transfer cases to Central Charges, where required.
🏢 Types of Cases for Compulsory Scrutiny
1. Survey Cases (CS01)
Returns from surveys under Section 133A (excluding 133A(2A)) conducted after April 1, 2023, must be scrutinized. The Directorate of Income-tax (Systems), Delhi, will identify these. Officers must issue notices under Section 143(2) and transfer the cases to Central Charges within 15 days, if necessary.
2. Search & Seizure or Requisition (CS02 & CS03)
Cases involving Section 132/132A actions between April 1, 2023, and April 1, 2025, fall under scrutiny:
- Pre-September 1, 2024 cases need administrative approval and transfer to Central Charges.
- Post-September 1, 2024 cases are handled by jurisdictional authorities.
3. Cancelled Registration Cases (CS04)
Entities whose registrations under Section 12A, 12AB, or 10(23C) were revoked before March 31, 2024, are scrutinized. Cases where cancellation was reversed through appeal are excluded. NaFAC will issue the notices.
4. Recurring Additions (CS05)
If a taxpayer has repeated additions (₹50 lakh+ in metro cities or ₹20 lakh+ elsewhere) in previous assessments, and they weren’t appealed or were upheld, such cases must be scrutinized. AOs must compile and forward these lists with approval.
5. Tax Evasion Intelligence Cases (CS06)
Returns flagged through tax evasion intelligence from enforcement agencies must undergo scrutiny. AOs must upload proof promptly and jurisdictional officers will take appropriate action.
⚠️ Exceptions to Compulsory Selection
Returns filed in response to automated notices under Section 142(1) or from the AIS, SFT, or CPC-TDS do not fall under the compulsory category. These are processed through CASS (Computer Assisted Scrutiny Selection).
📝 Issuance of Notices & Transfers
Authorities must ensure timely service of notices under:
- Sections 143(2) or 142(1) (via NaFAC)
- Sections 148, or other relevant provisions in applicable cases
Instructions are provided for third-party search-related cases and handling notices accordingly.
🌐 Instructions for International Taxation & Central Circles
These units must manage their own cases without routing them through NaFAC. Prior administrative approval is required before scrutiny begins.
⏰ Compliance Deadline
The statutory deadline for issuing scrutiny notices under Section 143(2) for FY 2024–25 returns is June 30, 2025. All officers must strictly follow the set deadlines and procedures for consistency and legal compliance.
