e-assessment

CBDT E-Assessment Instruction Reg S. 142(1) Notice Format

MASTI

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

This was done by the CBDT To facilitate conduct of e-assessment proceedings.

The CBDT has now issued a letter bearing F.No. System/ITBA/Assessment/Notice 142(1)/2017-18 Dated: 19-03-2018 on the issue of e-assessment.

The CBDT has stated that the format of 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 CBDT has revised the format of notice u/s 142(1)(ii)&(iii).

It is stated by the CBDT that the 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

Text of CBDT E-Assessment Instruction On S. 142(1) & 143(2) notices format

F.No. System/ITBA/Assessment/Notice 142(1)/2017-18 Dated: 19-03-2018

To,
All Principal Chief Commissioners of Income-tax/ PrDGsIT/ CCsIT/ DGsIT ,
All Principal Commissioner of Income-tax/ PrDsIT/ DsIT/ CsIT/CsIT (Admin&TPS),
All Assessing Officers.
Sir/Madam:

Subject: Issue of notices under section 142(1)(ii) & (iii) of Income –tax Act 1961 in revised format- regd.

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.

2. To facilitate conduct of e-assessment proceedings, the CBDT vide F.No. 225/157/2017/ITA-II dated 23-06-2017 had issued revised format of notices under section 143(2) of the Act so that the language of notices are in accordance with requirement of electronic proceedings and the same have already been provided in the system. It may be mentioned that specifically the need to produce documents and to be present in person has been done away with except as provided in the aforementioned Instruction.

3. 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.

4. In case where notice u/s 142(1) (i) &(ii) is already issued in old format to the assessees, requiring them to furnish information mentioned in notice at the date and time fixed in the office of Assessing Officer, an SMS/Email is being sent to all such assessees intimating them to furnish the said information electronically through their account in e-filing website. Therefore any compliance of the assessee through his e-filing account in response to the notice issued in old format should be considered valid.

5. This is issued with prior approval of Pr. DGIT(S).

Yours sincerely

(Ramesh Krishnamurthi)
Addl. DG(S)-3, CBDT, New Delhi

CBDT Notification: Centralized Communication Scheme, 2018

MASTI

The CBDT has issued a Notification dated 22nd February, 2018 to notify the Centralized Communication Scheme 2018.

The Centralized Communication Scheme 2018 provides for the electronic issuance of notices to taxpayers and prescribes the format in which the information and documents have to be furnished.

The Scheme provides that notices to taxpayers will be issued by the centralized communication centre under Section 133C of the Income-tax Act, 1961 through email or by placing a copy in the registered account on the portal, followed by an intimation by short messaging service (SMS).

Text of CBDT Notification on Centralised Communication Scheme, 2018

MINISTRY OF FINANCE
(Department Of Revenue )
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION

New Delhi, the 22nd February, 2018

S.O. 771(E).—In exercise of powers conferred by sub-section (3) of section 133C of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following scheme for centralised issuance of notice, namely:—

1. Short title and commencement-(1) This scheme may be called the Centralised Communication Scheme, 2018.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. Definitions.- (1) In this scheme, unless the context otherwise requires,—

(a) “Act” means the Income-tax Act, 1961 (43 of 1961);

(b) “Director General” means the Director General of Income-tax appointed under sub-section (1) of section 117 of the Act and authorised by the Board in this behalf;

(c) “Principal Director General” means the Principal Director General of Income-tax appointed under subsection (1) of section 117 of the Act and authorised by the Board in this behalf;

(d) “Designated authority” means the income-tax authority prescribed under sub-section (1) of Section 133C of the Act who is in charge of the Centralised Communication Centre;

(e) “Portal” means the web portal of the Centralised Communication Centre.

(2) The words and expressions used herein but not defined and defined in the Act shall have the meaning respectively assigned to them in the Act.

3. Issue and service of notice- (1) The Centralised Communication Centre shall issue notice to any person requiring him to furnish information or documents for the purpose of verification of information in his possession.

(2) The notice shall be issued under digital signature of the designated authority.

(3) The notice shall be served by delivering a copy by electronic mail, or by placing a copy in the registered
account on the portal followed by an intimation by Short Message Service.

(4) The information or documents called for under sub-paragraph (1) shall be furnished on or before the date
specified in the notice as specified in paragraph 4.

(5) The designated authority shall also run sustained campaign to ensure compliance by way of sending electronic mails, Short Message Service, reminders, letters and outbound calls.

4. Response to notice- (1) The Centralised Communication Centre may prescribe a machine readable structured format for furnishing the information or documents by the person in response to the notice issued under subparagraph (1) of paragraph 3.

(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedure, formats and standards for furnishing response to the notices.

5. No personal appearance-No person shall be required to appear personally or through authorised representative before the designated authority at the Centralised Communication Centre in connection with any proceedings.

6. Power to specify procedure and processes-(1) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify from time to time, procedures and processes for effective functioning of the Centralised Communication Centre, including the following matters, namely:-

(a) format and procedure for issue of notice;

(b) receipt of any information or document from the addressee in response to notice;

(c) mode and format for issue of acknowledgment of the response furnished by the addressee;

4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(d) provision of web portal facility including login facility, tracking status of verification, display of relevant details, and facility of download;

(e) call centre to answer queries and provide support services, including outbound calls and inbound calls seeking information or clarification;

(f) managing administration functions such as receipt, scanning, data entry, storage and retrieval of information
and documents in a centralised manner;

(g) grievance redressal mechanism in the Centralised Communication Centre.

[Notification No. 12/2018/F.No. 370142/22/2017-TPL]
NIRAJ KUMAR, Under Secy.

CBDT Instruction On Conduct of Assessment Proceedings in scrutiny cases electronically

MASTI

Instruction No. 0I/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi, the 12th of February, 2018

Subject: Conduct of Assessment Proceedings in scrutiny cases electronically-regd.-

5ub-section (23C) of Section 2 of the Income-tax Act, 1961 (Act), applicable from 01.06.2016, provides that “hearing” includes communication of data and documents through electronic mode. Accordingly to facilitate conduct of assessment proceedings electronically, vide letter dated 23.06.2017, in file of even number, Board had issued a revised format of notice(s) under section 143(2) of the Act. Para 3 of these notice(s) provided that assessment proceedings in cases selected for scrutiny would be conducted electronically in ‘E-Proceeding’ facility through assessee’s account in E-filing website of Income-tax Department.

2. In accordance with the procedure outlined in revised 143(2) notice(s) for conduct of assessment proceedings electronically, it is hereby directed that except for search related assessments, proceedings in other pending scrutiny assessment cases shall be conducted only through the ‘E-Proceeding’ functionality in ITBA/E-filing. However, in cases where the concerned assessee objects to conduct of assessment proceedings electronically through the ‘E- Proceeding’ facility, such cases, for the time-being, may be kept on hold.

3. Further, considering the situation that some of the stations have limited bandwidth, being VSAT stations and stations with limited capacity where bandwidth is in the process of being upgraded, it has been decided that till 31.03.2018, such stations, in accordance with target stipulated in Centra! Action Plan for financial year 2017-18, may undertake and complete only ten percent scrutiny cases (which are getting barred by limitation on 31.12.2018) having the potential to effect recovery during the current year itself. The list of such stations shall be specified by the Pr. DGIT(Systems). Accordingly, at these stations, till 31.03.2018, the assessment proceedings in cases to be completed as per Central Action Plan target, may be conducted manually if e-assessment is not possible. It is reiterated that at other stations covered under para 2 above, subject to exceptions mentioned therein, the assessments would be conducted electronically only.

4. Some of the important procedural aspects while conducting assessment proceedings through ‘E-Proceeding’ are as under:

4.1 Enquiry before assessment in electronic mode: For enquiries before assessment in terms of section 142(l)(ii) of the Act, notice shall be issued electronically and delivered upon the assessee in his ‘E-Filing’ account. While filing the response electronically in compliance with notice under section 142(l)(ii) of the Act, the concerned assessee shall verify it in the manner prescribed under Rule 14 of Income-tax Rules, 1962.

4.2 Use of digital signature by Assessing Officer: All departmental orders/communications /notices being issued to the assessee through the ‘e-Proceeding’ facility are to be signed digitally by the Assessing Officer.

4.3 Time for compliance: Online submissions may be filed till the office hours on the date stipulated for compliance.

4.4 Availability of facility for electronic submission of documents in time barring situation or where case has been finally heard by the Assessing Officer: The facility for electronic submission of documents through ‘E- Proceeding’ shall be automatically closed seven days before the time barring date. In other situations, upon completion of proceedings, before passing the final order, concerned Assessing Officer, on his volition, shall close the e-submission facility after mentioning in electronic order sheet that ‘hearing has been concluded’. However, if required, in exceptional circumstances, the concerned Assessing Officer may enable further filing of submissions electronically under intimation to the Range Head in ITBA.

4.5 In assessment proceedings being carried out through the ‘E-Proceeding’ facility, a particular proceeding may take place manually in following situation(s):

i. where manual books of accounts or original documents have to be examined;

ii. where Assessing Officer invokes provisions of section 131 of the Act or a notice is issued for carrying out third party enquiries/investigations;

iii. where examination of witness is required to be made by the concerned assessee or the Department;

iv. where a show-cause notice contemplating any adverse view is issued by the Assessing Officer and assessee requests for personal hearing to explain the matter.

4.6 Maintenance of ‘Record’ in the context of ‘E-Proceeding’: In cases being assessed through ‘E-Proceeding’, from now on, as far as possible, case-records as well as note sheet of proceedings shall be maintained electronically.

5. This instruction may be brought to the notice of ail concerned for immediate compliance.

6. Hindi version to follow.

(Rohit Garg) Director (ITA.II), CBDT

(F.No. 225/1572017-ITA.II)

Copy to:-
1. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)
2. PS to Secretary (Revenue)
3. Chairman, CBDT & All Members, CBDT
4. All Pr.CCsIT/ Pr.DsGIT
5. ITCC Section
6. O/o Pr. DGIT(Systems) for uploading on official website
7. Addl. CIT (Database Cell) for uploading on departmental website