The guidelines specify the parameters and procedures for selection of cases. Returns will be compulsorily scrutinized in cases involving surveys conducted under Section 133A of the Income-tax Act on or after 1st April 2023. Similarly, cases where search operations under Section 132 or requisitions under Section 132A were initiated between 1st April 2023, and 31st March 2025, will also face mandatory scrutiny. For search and survey cases, returns will generally be transferred to Central Charges within 15 days of notice issuance.
— Moreover, returns filed in ITR-7 by assessees claiming tax exemption/deduction will be subject to compulsory scrutiny if their registration or approval under various sections (e.g., 12A, 12AB, 10(23C)) was not granted, cancelled, or withdrawn by March 31, 2024, unless reversed on appeal. Cases with recurring additions from earlier assessment years exceeding Rs. 50 lakh in eight major metro cities or Rs. 20 lakh elsewhere, where such additions have become final or upheld by appellate authorities, will also be selected. Additionally, returns will be scrutinized if specific information pointing to tax evasion for the relevant assessment year is provided by any law-enforcement or regulatory agency and the return has been filed.