CBDT revises E-Assessment Scheme, 2019: Scope extended to cover Best Judgement Assessments by Faceless Assessment

CBDT - E-Assessment Scheme - Taxscan

The Central Board of Direct Taxes (CBDT) on Thursday revised the ‘E-assessment Scheme, 2019’ notified on September 12, 2019.

The Government notified that Now, the e-assessment scheme shall be called Faceless Assessment.

Now, the National e-Assessment Centre shall intimate the assessee for the conduct of faceless assessment in case wherein notice has been issued by AO. The Board has also extended its scope to cover best judgment assessments.

E-Assessment was a roadway towards a paperless, faceless assessment stripping away at bureaucratic layers. E-Assessment did not just magically appear from nowhere, it was tried and tested by the Income-tax Department before going forth with the E-Assessment Scheme, 2019.

The Board notified that in the notification dated September 12, 2019, in the opening portion, for the word “E-assessment”, the words “Faceless Assessment” shall be substituted.

The Board notified the procedure for the faceless assessment wherein the National e-Assessment Centre shall serve a notice on the assessee under sub-section (2) of section 143, specifying the issues for selection of his case for assessment. The assessee may, within fifteen days from the date of receipt of the notice referred to in clause (i), file his response to the National e-assessment Centre.

In clause 2 of the notification, after the words “arising out of assessments made”, the words “and penalty imposed” shall be inserted; and within quotes, after the words “appeal against an assessment”, the words “order, or penalty order” shall be inserted.

In clause 3, within quotes, for the portion beginning with the words “an electronic record” and ending with the words “said Act”, shall be substituted by “an electronic record shall be authenticated by the National e-Assessment Centre by affixing its digital signature; and the assessee or any other person, by affixing his digital signature if he is required under the Rules to furnish his return of income under digital signature, and in any other case by affixing his digital signature or under electronic verification code”.

In clause 4, within quotes, for the portion beginning with the words “The National E-Assessment Centre shall levy the penalty” and ending with the words “as the case may be”, shall be substituted by, “The National e-assessment Centre shall levy the penalty as per the said draft order of penalty and serve a copy of the same along with demand notice on the assessee or any other person, as the case may be, and thereafter 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.”

In clause 5, for item B, “the Principal Chief Commissioner or the Principal Director General, in charge of the National e-assessment Centre shall, with the prior approval of the Board, lay down the standards, procedures and processes for the effective functioning of the National e-assessment Centre, Regional e-assessment Centres and the unit set-up under the said Scheme, in an automated and mechanised environment, including format, mode, procedure and processes,” shall be substituted.

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