Faceless Assessment

Some technical aspects of faceless assessment

1. It is electronic mode procedure, no need to go department.

2. No Human interface

3. This is applicable on section 143(3) and 144.

4. Cases to be allocated to assessment units in a random manner

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

6. Without permission communication directly not possible by IT officers

7. No physical interface, no need to visit the income tax office

8. Here Taxpayer charter is also applicable, under this role and responsibility is to be decided for taxpayers and officer

9. Draft assessment order in one city, review in another city and finalization in third city.

10. Press Release − 7th Oct. 2019 Launch of faceless assessment in Income Tax Department and inauguration of the National e−Assessment Centre (NeAC)

11. Notification No. 64/2020 Dated: 13th August 2020 Income tax authority (NeAC) specified to facilitate the conduct of Faceless Assessment Proceedings

12. According to the Section 143(3A) of Income Tax Act, where eliminating the physical appearance and interface between the assessing officer and the assesses or authorized representative for income tax assessment purposes and to enhance efficiency, transparency and accountability of the department in this area is faceless assessment.

13. Team based Assessment, speedy completion

14. We can do complain only through e−mail, call

15. Every information is received only through Nation E−Assessment center. It is mechanic system. So It is duty of every taxpayer that he has to submit every information (demanded by department) within 15 days.

16. In case a taxpayer fails to file response to the notice of NeAC, the National e-assessment centre will issue a notice under section 144 for making a best judgment assessment

17. It should be practice of every taxpayer that he must reply of every notice with in 13 days of receive notice.

18. We should improve our Tax knowledge

19. Every professional should have knowledge of IT ACT as well as Income tax Act

20. We should also check that separately DIN no. is also mentioned on every notice and demand order.

21. Due to this mechanism time and cost would be saved

22. Its paper− less mechanism

23. It is challenging situation for department as well as taxpayers

24. In this mechanism taxpayer cannot find department officer but officer can find taxpayer

25.  In this mechanism no direction is issued for black money or search and seizer except section 143(3) and 144

26. This mechanism would be started as on 25th September 2020. So every taxpayer should be registered through portal or mobile app.

27. It should be practice of professionals that at this portal they have to registered through their mail ID so that Notice and order is received at their mail id.

28. System Design:- NeAC would assign cases to these units:-

Taxpayer—– NeAC—- ReAC

(1. Assessment Unit( To perform working of assessment),

2. Verification Unit( To conduct verification, enquiry, cross verification),

3. Technical Unit(To perform work of technical assistance, including advice on legal, accounting, IT, valuation),

4. Review Unit(To review draft assessment order)

29. After that NeAC provide opportunity to taxpayer before finalising assessment order

30. If NeAC may at any stage of the assessment, if considered necessary, transfer the case to the Assessing Officer having jurisdiction.

31. When assessment is completed electronically, NeAC shall transfer all electronic records pertaining to case to jurisdictional AO for: –

• Imposition of penalty
• Collection and recovery of demand
• Rectification of mistake
• Giving effect to appellate orders
• Submission of remand report etc. or any representation to be made before CIT(A), ITAT or Courts
• Proposal seeking sanction for launch of prosecution and filing of complaint before the Court

We can file appeal against the Faceless Assessment Order with Commissioner (Appeals) having jurisdiction over the jurisdictional AO

Further, NeAC has the power to transfer the case at any time to the jurisdictional AO, if considers necessary.

Work of Assessment unit:-  The ‘assessment unit’ shall, after taking into account all the relevant material gathered as above, pass a draft assessment order either accepting the returned income of the taxpayer or modifying the returned income of the taxpayer, as the case may be, and send a copy of such order to the National e-Assessment Centre

The ‘assessment unit’ shall, while making draft assessment order, provide details of the penalty proceedings to be initiated therein, if any Work of NeAC:-

The National e-Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the CBDT, including by way of an automated examination tool, whereupon it may decide to:

a)  Finalize the assessment as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, on the taxpayer, along with the demand notice, specifying the sum payable by, or refund of any amount due to the taxpayer on the basis of such assessment; or

b) Provide an opportunity to the taxpayer, in case a modification is proposed, by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the draft assessment order; or

c) Assign the draft assessment order to a review unit in any one Regional eAssessment Centre, through an automated allocation system, for conducting review of such order Works of Review Units: –

a) Concur with the draft assessment order and intimate the National e-Assessment Centre about such concurrence; or

b) Suggest such modification, as it may deem fit, to the draft assessment order and send its suggestions to the National e-Assessment Centre.

c) The National e-Assessment Centre shall, upon receiving concurrence of the review unit finalize the draft assessment order or provide an opportunity to the taxpayer in case a modification is proposed

The National e-Assessment Centre shall, upon receiving suggestions for modifications from the review unit, communicate the same to the assessment unit.

The assessment unit shall, after considering the modifications suggested by the review unit, send the final draft assessment order to the National e-Assessment Centre.

The National e-assessment Centre shall, upon receiving final draft assessment order, finalize the draft assessment order, or provide an opportunity to the taxpayer in case a modification is proposed, as the case may be.

The taxpayer may, in a case where notice is issued for making submissions against the draft assessment order, furnish his response to the National e-Assessment Centre on or before the date and time specified in the notice.