E-Assessment Scheme 2019- Legal Framework, Organisation Structure, NeAC/ReAC Manpower

E-Assessment Scheme 2019

Finance Minister’s Budget Speech 2019

The Hon’ble FM, in her Budget Speech on 5^th July 2019 announced:

√ Faceless assessment in electronic mode

√ With no human interface

√ To be launched in 2019 in a phased manner

√ Notices to be issued electronically by a Central cell

√ Cases to be allocated to assessment units in a random manner

√ Central Cell to be the single point of contact between taxpayer and the Department

Legal Framework

• Section 143(3A) & (3B) of the IT Act empowered notification of E-assessment scheme to impart greater efficiency, transparency and accountability by:

– Eliminating interface between Assessing Officer and Assessee to the extent technologically feasible

– Optimising the utilisation of resources through economies of scale and functional specialisation

– Introducing team based assessment with dynamic jurisdiction

– E-assessment Scheme 2019 notified on 12.09.2019

Organisation Structure

• National e-Assessment Center (NeAC)

– Headed by Pr. CCIT

– Located at Delhi

• 8 Regional e-Assessment Centers (ReAC)

– Headed byCCIT

– Located at Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Pune, Bangalore and Hyderabad

NeAC/ReAC Manpower

E-Assessment 2019 Ecosystem

National e-Assessment Center (NeAC) Delhi

Functions of NeAC

• Specify format, mode, procedure and processes
• Send all notices/communication electronically
• Assign cases to assessment unit (ReAC) through automated allocation system
• Allocate cases to verification unit, technical unit through automated allocation system
• Select draft assessment orders for review and allocate to review unit through automated allocation system
• Providing opportunity to taxpayer before finalising assessment order
• Finalize assessment orders
• Transfer all electronic records to jurisdictional AO for post assessment work

Regional e-Assessment Centers (ReAC)

Functions of ReACs

• Assessment Unit – Identify issues, seek information and analyse material to frame draft assessment orders
• Verification Unit – Conduct enquiry, examination of books of account, examination of witnesses and recording of statement (through VC)
• Technical Unit – Provide advice on legal, accounting, forensic, Information Technology, Valuation, Transfer Pricing, Data Analytics etc.
• Review Unit – Review of Draft Assessment Order – Whether material evidence brought on record, points of facts and law incorporated, application judicial decisions considered, arithmetic correctness etc.

Progress So Far͙………

Expected Benefits

• Ease of compliance for taxpayers
• No human interface
• Transparency and efficiency
• Functional Specialisation
• Improvement in Quality of Assessment
• Risk based and focussed approach
• Systematic and specific verification
• Standardisation and quality management
• Better monitoring
• Expeditious Disposal of Cases

Source- PDF on E-Assessment Scheme 2019