FACELESS TAX ASSESSMENT SCHEME

 

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FACELESS TAX ASSESSMENT SCHEME

 

•    The name of the Assessment Scheme has been changed from E-assessment Scheme, 2019 to Faceless Assessment Scheme 2019.

•  ‘Best Judgment Assessment’ under section 144 is also covered under the definition of‘assessment’ in the new Faceless Assessment Scheme 2019 in accordance with the amendments introduced by Finance Act, 2020.

•     It has now been defined that the term ‘Rules’ used in the Faceless Assessment Scheme 2019 shall mean the Income Tax Rules, 1962.

•     The new Faceless Assessment Scheme provides for seeking adjournment or extension of time limit for filing his response by the assessee.

•     The Faceless Assessment Scheme shall now cover a penalty order for the filing of an appeal against the assessment order/penalty order.

•     The Faceless Assessment Scheme 2019 has substituted the ‘Procedure for assessment’ under this scheme. It is now provided that where a notice of assessment is issued under section 143(2) for a return filed under section 139 or in response to a notice issued u/s 142(1) or u/s 148(1) is issued by the jurisdictional Assessing Officer, the National e-Assessment Centre shall intimate the assessee that assessment in his case shall be completed under this Faceless Assessment Scheme.

The same procedure shall apply in case no return is filed by the assessee under the aforesaid cases.

In this context, it is pertinent to note that CBDT has issued an order u/s 119 to direct that henceforth all the assessment order shall be passed by National e-Assessment Centre (NeAC) through the Faceless Assessment Scheme 2019. It further states that any assessment order which is not in conformity of the Order shall be treated as non-est and shall be deemed to have never been passed.

•      The procedure to issue the show cause notice (SCN) for making the assessment under section 144 is prescribed in the new Faceless Assessment Scheme. The procedure to be followed by the assessee after the receipt of the SCN is also prescribed. The procedure to issue the draft assessment order u/s 144  by the ‘assessment unit’ and the final assessment order by the NeAC is also prescribed.

•     The NeAC shall transfer electronic records of the penalty proceedings to the Assessing Officer having jurisdiction over the said case for such action as may be required under the Act.

•     The E-Assessment Scheme provided for the exchange of all the communication exclusively in electronic mode. The Faceless Assessment Scheme has provided an exception to this rule to the enquiry or verification conducted by the verification unit.

•      For authentication of electronic records, apart from a digital signature, the Faceless Assessment Scheme also provides for authenticating the electronic records by ‘electronic verification code’ by the assessee as defined in Rule 12 of the Income Tax rules, 1962. NeAC shall be required to authenticate the electronic records by Digital Signature only.

•      Personal hearing through video conferencing under the Faceless Assessment Scheme shall be held in any unit under this scheme. The procedure for personal hearing through video conferencing has been extensively provided.

•       The power to lay down the standards, procedures and processes for the effective functioning of the NeAC, ReAC and other units shall be exercised with the approval of the Board.

 

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