E-Assessment: CBDT Asks AOs to Use Revised Format of Notice u/s 142(1)(ii)&(iii) [Read Letter]

As the Government has decided to implement e-assessment from the next financial year onwards, the Central Board of Direct Taxes (CBDT) has directed the Assessing Officers to use the revised format of notice under section 142(1)(ii)&(iii) of the Income Tax Act, 1961.

The concept of electronic assessment proceeding was introduced last year and its scope was gradually enlarged. The e-assessment proceeding is now facilitated through e-filing portal. The CBDT Instruction No. 01/2018, dated 12-02-2018 has mandated that except for search-related assessments and exceptional circumstance mentioned therein all other pending scrutiny assessment cases shall be conducted only through the ‘E-Proceedings’ functionality in ITBA/E-filing.

To facilitate the conduct of e-assessment proceedings, the CBDT vide F.No. 225/157/2017/ITA-II dated 23-06-2017 had issued revised the format of notices under section 143(2) of the Act so that the language of notices are in accordance with the requirement of electronic proceedings and the same has already been provided in the system.

Under the new scheme, the need to produce documents and to be present in person has been done away with except as provided in the aforementioned Instruction.

A CBDT missive issued on Monday said that “however, notice u/s 142(1) was not amended in conformity with e-assessment procedures and old format has been continued. To correct this inconsistency, the format of notice u/s 142(1)(ii)&(iii) has been revised and the same is enclosed herewith. This revised format now incorporates the same language as in the 143(2) notice to facilitate the taxpayer to submit the documents and respond electronically and the requirement to visit the office has been removed. This has also been implemented in ITBA system. Therefore, all the assessing officers are requested to use this format for the cases in e-assessment proceedings.”

It further clarified that any compliance of the assessee through his e-filing account in response to the notice issued in old format should be considered valid.