Income Tax E- Assessment Proceeding

Income Tax E-Assessment  Proceeding

Income-tax in electronic mode, in a phased manner, with no human interface. the Revenue Secretary has launched the faceless assessment in the Income Tax Department by inaugurating the NAC (NAC) in Delhi.

-Under e-Assessment scheme 2019: –

(i) There would be a setup of Digital Technology for Risk Management by way of automated examination tool, Artificial Intelligence, and Machine Learning,

.(ii) 8 Regional e-Assessment Centres (RAC) at Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Pune, Bengaluru and Hyderabad which would comprise Assessment unit, Review unit, Technical unit and Verification units.

(iii) Cases for the specified work shall be assigned by the NAC to different units by way of automated allocation systems.

How E-assessment scheme will operate:

The assessee can see the notice under E-proceeding menu on Income Tax Portal and can submit his response within fifteen days from the date of receipt of the notice. If the response cannot be filed within the said period, the window for online submission will close and the assessee has to wait for further notice.

The assessment unit may make a request to the NAC for—

a. obtaining such further information, documents or evidence from the assessee or any other person, as it may specify;

b. conducting of certain enquiry or verification by verification unit, and

c. seeking technical assistance from the technical unit;

When a request for conducting of certain enquiry or verification has been made by the assessment unit, the request shall be assigned by the NAC to a verification unit through an automated allocation system to conduct enquiry or verification as required by the Assessment Unit;

When a request for seeking technical assistance from the technical unit has been made by the assessment unit, the request shall be assigned by the NAC to a technical unit in any one ReAC through an automated allocation system.

.The Assessment unit shall, while making draft assessment order, provide details of the penalty proceedings to be initiated therein if any.

Procedure for Final Assessment:

Procedure 1: Finalise the assessment as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, along with the demand notice.

Procedure 2: In case of any modification is proposed, serve an SCN calling upon him to show cause as to why the assessment should not be completed as per the draft assessment order;

Procedure 3: Assign the draft assessment order to a review unit in any one Regional e-assessment Centre, through an automated allocation system, for conducting a review of such order;

Points to be kept in mind while submission:

• Every submission shall be accompanied by a covering letter
• The attachment shall be in PDF or Excel format and the maximum size of the attachment shall not be more than 5 MB
• The attachment name shall not contain any special character or space
• It is advisable to submit a reply within fifteen days of receipt of the notice. If not, the submission window will be closed and an ex-parte order may be passed.
• It is advised to make a system wherein on alternate days, you check on e-Proceeding if any notice has been issued by the department.