New Delhi, Jun 26 (PTI) The CBDT has directed Income Tax Department officials across the country to ensure "due application of mind" while issuing notices for scrutiny and assessment of a taxpayer's return, emphasising that all queries should be "relevant" and "specific".

The policy-making body for the direct taxes administration has also asked all the region heads (PCCIT or principal chief commissioners of I-T) of the department to have an "effective supervision" over their assessing officers and make sure that questions sent by them to a taxpayer are "justified" and that "irrelevant" queries are completely avoided.

PTI has accessed a communication sent by the office of Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal to the PCCITs, directing them that queries sent by FAOs (faceless assessing officers) to the taxpayers should be "relevant", "specific" and "grounded" in the specific circumstances of the case in question.

The letter says that the assessment unit heads (additional or joint commissioners of I-T) will bear "direct responsibility" for the quality of such notices and assessment orders as it directs them to ensure that "due application of mind" is exercised by the FAOs while raising queries.

The CBDT has sought the personal indulgence of supervisory officers in making sure that the queries raised by the assessing officers conform to the selection criteria issued recently by it for cases that fall under the scrutiny procedure.

It adds that the queries sent by the assessing officers should be "justified" and demonstrate a "clear application of mind" as specified in the direct tax law and rules.

The CBDT has also directed the PCCITs to "periodically" interact with the assessing officers, reiterate these instructions and undertake a review every month to check if the guidelines are being followed.

The board has also directed the regional heads (PCCITs) to share a monthly update on the quality of such scrutiny and assessment orders.

The CBDT, on June 13, issued the annual guidelines and procedure for compulsory selection of I-T returns for complete scrutiny during the 2025-26 fiscal. PTI NES RHL

Due application of mind in tax scrutiny: queries must be specific and justified, with supervisors ensuring compliance. Assessing officers must issue only relevant, specific and justified scrutiny queries grounded in the taxpayer's circumstances, exercising due application of mind; assessment unit heads bear direct responsibility for the legal quality of notices and orders. Regional heads must supervise through periodic interactions, monthly reviews against selection criteria for scrutiny, and submission of monthly quality updates to ensure compliance and avoid irrelevant queries.