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FACELESS ASSESSMENT SCHEME


FACELESS ASSESSMENT SCHEME

FACELESS ASSESSMENT SCHEME

FACELESS ASSESSMENT SCHEME

INCOME TAX-FACELESS ASSESSMENT SCHEME

FACELESS ASESSMENT SCHEME LAUNCHED BY PM MODI

E-Assessment is now Faceless Assessment, CBDT vide Notification no. 60 and 61 of 2020 has amended the earlier provisions for e-assessment and renamed the said scheme as Faceless Assessment.

This scheme aimed at moving to faceless scrutiny and eliminate human interference of human in assessment proceedings.

Features of the Scheme:

·         Greater transparency

·         Minimal interface with taxpayer

·         Improvement in delivery of services.

·         Automated random allocation of cases.

·         Central issuance of notices with Document Identification No.(DIN)

·         Draft assessment order in one city, review in another city and finalisation in third city.

Exceptions to Faceless Assessment:

Any assessment that includes serious frauds, major tax evasion, sensitive and search matters will not form   part of this   Faceless Assessment.

The system also excludes International Taxation and Black Money Act & Benami.

Procedure for Faceless assessment:

STEP 1: The National e-Assessment Centre shall serve a notice on the assessee under sub-section (2) of section143.

STEP 2: The assessee may, within fifteen days from the date of receipt of notice referred to in clause (i), file his response to the National e-assessment Centre.

STEP 3: Allocation of Case to Assessment Unit-

NeAC shall assign the case selected to an AU in any one Regional e-Assessment Centre through Automated Allocation System

I. Where a case is allocated to AU, the AU may request NeAC to:

obtain such information/document/evidence from assessee or any other person

conducting of certain enquiry/verification by Verification Unit

seeking technical assistance from Technical Unit

 

II. The NeAC shall issue appropriate  notice or requisitions to the assessee or any other person for obtaining necessary information, documents or evidence   as may be requested by Assessment Unit to NeAC.

 

III. The Assessee shall file his response to NeAC through an application within the specified time or such extended time as the case may be.

 

IV. Request for conducting of certain enquiry or verification by the Verification Unit-------------NeAC shall assign the same to a VU in one Regional  e-assessment center  through an Automated Allocation System

 

V. Seeking technical assistance from Technical Unit----------------- NeAC shall assign the same to a TU in one Regional  e-assessment Center  through an Automated Allocation System.

STEP 4: After taking into account all the sought information in writing, The AU shall draft an Assessment Order of either accepting or modifying the returned return of that assessee and send a copy to NeAC along with penalty proceedings to be initiated, if any:

 I. NeAC shall examine the draft assessment order in accordance with the risk management strategy specified by board, whereupon it may decide to-

a. Finalise the assessment in accordance with draft assessment. Serve an order to assessee specifying the sum payable or refund amount along with notice of penalty proceedings if any.

b.Provide an opportunity to the assesse,in case of modification is proposed  by serving a show cause notice as to why the assessment should not be completed as per draft assessment.

c. In case of Review, the NeAC can assign the draft assessment order to Review Unit in any ReAC through an Automated Allocation System.

II.Where  NeAC has referred a case to REVIEW UNIT, RU shall conduct review of the order and  may decide to:

Agree with the draft assessment order and intimate the same to NeAC.

Suggest any modification, as it may deem fit, to such draft order and send it to NeAC

III. Where  NeAC receives modification as suggested by REVIEW UNIT, It will communicate the same to an  AU on Automated Allocation System (i.e other than the AU which had prepared the draft assessment order)

IV. The AU unit shall after considering the modifications made by RU, send the final draft Assessment Order to NeAC

V. NeAC after receiving the final draft, shall follow the laid down procedure as discusses above in 4(I) a or b.

VI. Where a Show Cause notice has been served to the Assessee,he shall submit his response to the to NeAC within the time specified therein.

VII. NeAC shall where –

Finalise the assessment as per draft order if assessee fails to reply in stipulated time period.

Send the reply of assessee to AU and AU after taking into such response make a Revised draft and send to NeAC.

STEP 5: Final Order and Completion of Assessment:

The NeAC shall passes the order depending upon such revised order as received from AU. An opportunity will be provided to assessee in case the modification is prejudicial to the interest of assessee and then decide the case as per the procedure explained in Step 4.

The NeAC shall after completion of assessment, transfer all the electronic records of the case to Assessing Officer having jurisdiction over such case for: –

a) Imposition of Penalty

 

b) Collection and recovery of demand

 

c) Rectification of mistake

 

d) Giving effect to appellate orders

 

e) Submitting reports to be produced before Commissioner(Appeals)/Tribunal/courts as the case may be

 

f)  Proposal seeking sanction for launch of prosecution and filing of complaint before the court

 

The NeAC may at any stage of the Assessment , if considered necessary, transfer the case to the Assessing Officer having jurisdiction over such case.