The Central Board of Direct Taxes has notified the ‘Faceless Assessment (1st Amendment) Scheme, 2021’ which seeks to amend Faceless Assessment Scheme, 2019, by way of substituted Procedure for assessment. The following procedure has been introduced in the Amendment:
- National e-Assessment Centre
The National e-Assessment Centre shall serve a notice on the assessee under sub-section (2) of section 143 of the Act and the assessee may, within fifteen days from the date of receipt of notice shall file his response to the National e-Assessment Centre. The National e-Assessment Centre shall intimate the assessee that assessment in his case shall be completed under this Scheme.
- Regional e-Assessment Centre
The National e-Assessment Centre shall assign the case selected for the purposes of e-assessment under this Scheme to a specific assessment unit in any one Regional e-Assessment Centre through an automated allocation system. In cases where such further information, documents or evidence from the assessee or any other person is required, it may make a request to the National e-Assessment Centre. Similarly, for conducting of certain enquiry or verification by verification unit or seeking technical assistance from the technical unit, it may make a request to the National e-Assessment Centre.
In cases where a request for obtaining further information, document or evidence from the assessee or any other person has been made by the assessment unit, the National e-Assessment Centre shall issue appropriate notice or requisition to such assessee or person, specifying a time therein, for submitting such information, documents or evidence.
- Automated Allocation System
Further, where a request for conducting of certain enquiry or verification by the verification unit or for seeking technical assistance has been made by the assessment unit, the request shall be assigned by the National e- Assessment Centre to a verification unit or a technical unit, as the case may be, in any one Regional e-Assessment Centre through an automated allocation system. The assessee shall file his response within the stipulated time to National e-Assessment Centre and in cases of failure, the National e-Assessment Centre shall intimate such failure to the assessment unit.
- Draft Assessment Order
The assessment unit shall make a draft assessment order, either accepting the income or sum payable by, or sum refundable to, the assessee as per his return or making variation to such income or sum, and send a copy of such order to the National e-Assessment Centre.
The National e-Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to
- finalise the assessment, in case no variation prejudicial to the interest of assessee is proposed, as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; or
- provide an opportunity to the assessee, in case any variation prejudicial to the interest of assessee is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made; or
- assign the draft assessment order to a review unit in any one Regional e-Assessment Centre, through an automated allocation system, for conducting review of such order.
The review unit shall conduct a review of the draft assessment order, referred to it by the National e-Assessment Centre, whereupon it may decide to concur with the draft assessment order and intimate the National e-Assessment Centre about such concurrence; or suggest such variation, as it may deem fit, in the draft assessment order and send its suggestions to the National e-Assessment Centre.
In cases, where the eligible assessee files his objections with the Dispute Resolution Panel, the National e-Assessment Centre shall upon receipt of the directions issued by the Dispute Resolution Panel under sub-section (5) of section 144C of the Act, forward such directions to the concerned assessment unit and the assessment unit shall in conformity of the directions issued by the Dispute Resolution panel under sub-section (5) of section 144C of the Act prepare a draft assessment order in accordance with sub-section (13) of section 144C of the Act and send a copy of such order to the National e-Assessment Centre.
- Duty of National e-Assessment Centre
Lastly, the National e-Assessment Centre shall, upon receipt of draft assessment order, finalise the assessment within the time allowed under sub-section (13) of section 144C of the Act and serve a copy of such order and notice for initiating penalty proceedings, if any, upon the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment. The National e-Assessment Centre shall, after completion of assessment, transfer all the electronic records of the case to the Assessing Officer having jurisdiction over the said case for such action as may be required under the Act.
*Tanvi Singh, Editorial Assistant has put this story together.