Introduction
In this Part, we will discuss various specialized units that play an essential role in Faceless Assessment Procedure, to ensure accuracy, transparency, and efficiency. Section 144B of Income Tax Act involves distinct entities such as Assessment Units, Verification Units, Technical Units, and Review Units, each with specific responsibilities and functions. These units collectively contribute to the thorough examination and validation of tax-related matters, maintaining the integrity of the assessment process. Let’s delve into each of these units to gain a comprehensive understanding of their individual contributions within the broader scope of income tax administration.
In the context of Faceless Assessment Procedure, the Board may set up the National Faceless Assessment Centre to facilitate the conduct of faceless assessment proceedings in a centralized manner. Each unit plays a specific role in different stages of the assessment, contributing to the overall efficiency and effectiveness of the process
1. Assessment Units
Functions
- Making Assessment: The Assessment Unit is responsible for making assessments, reassessments, or recomputations under sub-section (3) of section 143 or under section 144 or under section 147, as the case may be, in a faceless manner.
- Identifying Issues: It includes the identification of points or issues material for the determination of any liability (including refund) under the Act.
- Seeking Information: The unit may request further information, documents, or evidence from the assessee or any other person, as it may specify.
- Conducting Enquiry or Verification: It may make a request for conducting an enquiry or verification by the verification unit or seeking technical assistance from the technical unit.
- Preparation of Draft Order: After considering all relevant material, the Assessment Unit prepares an income or loss determination proposal and sends it to the National Faceless Assessment Centre. It may also prepare a draft order after considering the review report.
Authorities
The term “Assessment Unit” refers to an Assessing Officer having powers so assigned by the Board.
Jurisdiction
The Assessment Unit operates under the National Faceless Assessment Centre and conducts assessments in a faceless manner as per the procedure laid down under Section 144B.
Relevant Provisions
- Section 144B(1)(i): Assignment of the case to a specific assessment unit through an automated allocation system.
- Section 144B(1)(iv): Where a case is assigned to the assessment unit, it may make specific requests.
- Section 144B(3)(ii): The Board may set up such assessment units to conduct faceless assessment and perform specific functions.
The Assessment Unit plays a crucial role in the faceless assessment process by conducting assessments, identifying key issues, seeking information, and preparing draft orders. It operates under the guidelines and procedures specified in Section 144B and works in coordination with other units such as the verification unit and technical unit.
2. Verification Units
Functions
- Conducting Enquiry or Verification: The Verification Unit is responsible for performing the function of verification, which includes enquiry, cross-verification, examination of books of account, examination of witnesses, recording of statements, and other functions required for verification purposes.
- Automated Allocation: Upon request from the Assessment Unit for conducting an enquiry or verification, the National Faceless Assessment Centre assigns the request to a Verification Unit through an automated allocation system.
Authorities
The term “Verification Unit” refers to an Assessing Officer having powers so assigned by the Board. The function of the Verification Unit under this section may also be performed by a Verification Unit located in any other faceless centre set up under the provisions of the Act.
Jurisdiction
The Verification Unit operates under the National Faceless Assessment Centre and facilitates the conduct of faceless assessment by performing verification functions.
Relevant Provisions
- Section 144B(1)(iv)(b): Where a case is assigned to the Assessment Unit, it may make a request for conducting an enquiry or verification by the Verification Unit.
- Section 144B(3)(iii): The Board may set up such Verification Units to facilitate the conduct of faceless assessment and perform the function of verification.
The Verification Unit plays a vital role in the faceless assessment process by conducting enquiries and verifications as requested by the Assessment Unit. It ensures that the information provided by the assessee is accurate and supports the assessment process.
3. Technical Units
Functions
- Providing Technical Assistance: The Technical Unit is responsible for providing technical assistance, which includes any assistance or advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management, or any other technical matter under the Income Tax Act or an agreement entered into under section 90 or 90A.
- Automated Allocation: Upon request from the Assessment Unit for technical assistance, the National Faceless Assessment Centre assigns the request to a Technical Unit through an automated allocation system.
Jurisdiction
The Technical Unit operates under the National Faceless Assessment Centre and facilitates the conduct of faceless assessment by providing specialized technical assistance as required.
Relevant Provisions
- Section 144B(1)(iv)(c): Where a case is assigned to the Assessment Unit, it may make a request for seeking technical assistance in respect of determination of arm’s length price, valuation of property, withdrawal of registration, approval, exemption, or any other technical matter by referring to the Technical Unit.
- Section 144B(3)(iv): The Board may set up such Technical Units to facilitate the conduct of faceless assessment, to perform the function of providing technical assistance.
The Technical Unit plays a vital role in the faceless assessment process by providing specialized technical assistance to the Assessment Unit. It ensures that complex technical matters are addressed with expertise, thereby supporting the accuracy and integrity of the assessment process.
4. Review Units
Functions
- Review of Income or Loss Determination Proposal: The Review Unit conducts a review of the income or loss determination proposal assigned to it by the National Faceless Assessment Centre. This includes checking whether the relevant and material evidence has been brought on record, relevant points of fact and law have been duly incorporated, the issues requiring addition or disallowance have been incorporated, and such other functions as may be required for the purposes of review.
- Preparation of Review Report: After conducting the review, the Review Unit prepares a review report and sends it to the National Faceless Assessment Centre, which forwards it to the Assessment Unit.
Jurisdiction
The Review Unit operates under the National Faceless Assessment Centre and facilitates the conduct of faceless assessment by performing the function of review.
Relevant Provisions
- Section 144B (3)(v): The Board may set up such Review Units to facilitate the conduct of faceless assessment, to perform the function of review.
- Section 144B (1)(xvi)(b): The National Faceless Assessment Centre may assign the income or loss determination proposal to a Review Unit through an automated allocation system, for conducting a review of such proposal.
The Review Unit plays a vital role in the faceless assessment process by conducting a thorough review of the income or loss determination proposal. It ensures that the assessment process is carried out with accuracy and integrity, and that all relevant points of fact and law are considered.
Authorities of the Units
The authorities for the Assessment Unit, Verification Unit, Technical Unit, and the Review Unit are specified under Section 144B(4) and include:
- Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, as the case may be.
- Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Income-tax Officer, as the case may be.
- Such other income-tax authority, ministerial staff, executive, or consultant, as may be considered necessary by the Board.
Communication
All communications among the Assessment Unit, Review Unit, Verification Unit, or Technical Unit, or with the assessee or any other person with respect to the information or documents or evidence or any other details, are made through the National Faceless Assessment Centre as per Section 144B(5).
Conclusion
In the realm of faceless assessment, the units of Assessment, Verification, Technical, and Review are the pillars that uphold the integrity and efficiency of the entire process. The Assessment Unit takes charge of conducting meticulous assessments, ensuring accurate liability determination, and addressing key issues. The Verification Unit assumes the vital role of validating information, conducting thorough inquiries, and verifying the authenticity of data. In parallel, the Technical Unit extends its expertise, providing specialized advice on multifaceted matters, bolstering the assessment and verification units. Lastly, the Review Unit serves as the guardian of quality, meticulously reviewing draft assessment orders to ensure compliance with legal provisions and the incorporation of relevant facts and judicial decisions. Collectively, these units stand as guardians of fairness, accuracy, and transparency in the dynamic landscape of faceless assessment procedures.
