The Central Board of Indirect Taxes (CBDT) in its circular dated 26th September, 2019 has issued direction on the conduction of scrutiny Assessment proceedings through “e-proceedings” for the FY 2019-2020.
‘E-assessment Scheme, 2019 (Scheme) was notified by CBDT on 12th September, 2019 in order to eliminate human interface, reduce corruption and bring in transparency between the taxpayer and the department.
Key highlights from the circular:
All the assessment proceedings framed under section 143(3)-(Scrutiny assessment) shall be conducted electronically. The tax assessees shall receive notices/communications/show cause on their registered emails as well as on registered e-filing account on the e-filing portal. They shall produce/ cause to produce their response or evidence to such notices.
CBDT has issued a list of exceptional cases where e-proceedings will not be carried out:
- Cases where the Income Tax Return (ITR) was filed in the paper mode and the assessee concerned does not have an e-filing account.
- assessment being framed in non-PAN cases.
- In set-aside assessments.
- In all cases at stations connected through the VSAT or with limited capacity of bandwidth.
- In cases where assessment framed under section(s) 153A, 153C and 144 of the Act.
- In extraordinary circumstances after recording the reasons for such relaxation, assessment proceedings can be conducted through the conventional mode.
It is clarified that issue of notices and departmental communications in such cases shall be strictly governed by the guidelines issued by CBDT vide its Circular No.19/2019 dated 14.08.2019 regarding generation/allotment/quoting of Document Identification Number (DIN).
The personal hearing and attendance may take place only in situations where books of accounts and witness are to be examined; or where Assessing Officer invokes provisions of section 131 or where a show-cause notice is issued and assessee requests for personal hearing to explain the matter.
Click here to read circular.
Click here to read more on Scheme.
