Tax Assessment and Litigation
Income Tax Assessment
In order to bring more transparency, efficiency, and accountability in Income Tax Assessment and in order to reduce corruption, the Central government has been working for some quiet time and in the last few years; the tax department had introduced e-proceedings, faceless assessment, and faceless appeal, to avoid incidences of harassment or other malpractices by the tax authorities.
The taxpayer’s physical presence would not be required in these online processes. Also, it helps avoid the hassles and costs associated with travel while side-stepping legacy problems such as non-receipt, delayed delivery of notice, or inability to be present at hearings due to other emergencies.
Following faceless assessment appeals, the Budget 2021 has introduced ‘faceless’ procedures for the Income Tax Appellate Tribunal and a ‘faceless’ Dispute Resolution Committee for small taxpayers. The thrust is towards adopting a virtual digitized mechanism in place of in-person hearings for tax disputes.
The measures are aimed at simplifying tax administration, ease compliance as well as reduce the scope for harassment of assessees by the tax authorities.
Accordingly, under Direct Tax, the following schemes are applicable:
- E proceedings under Income Tax Act
- E-Assessment Scheme under Income Tax
- Faceless Assessment Scheme under Income Tax
- Faceless Appeal Scheme before CIT-A
- Faceless Dispute Resolution Committee
- Faceless procedures for Income Tax Appellate Tribunal
We have more than 18 years of experience in handling Income Tax Assessment and appellate proceedings before Income Tax Authorities. We provide the following services:
- Review of notices issued by the Income Tax Officers and representation/ online submission before revenue authorities in connection with the Scrutiny assessment proceedings and defending the positions adopted by the Company in the return of income:
- In-depth review of the information/ draft submissions to be filed with the authorities specified above to defend the tax positions adopted by the company in its corporate tax returns for the period under review;
- In-depth research of any technical arguments to be put forth before the Indian Revenue Authorities to defend the tax positions adopted by the company in its corporate tax returns for the period under review;
- Preparation of detailed technical submissions in response to queries rose by the authorities specified above and to defend the tax positions adopted by Company in its Company corporate tax returns for the period under review;
- Representation/virtual meetings before revenue authorities and discussions with the authorities specified above to discuss and file the technical and factual submissions relating to assessment proceedings and;
- Post completion of scrutiny assessment, drafting/filing of submissions with the ITA regarding any penalty proceedings, stay of demand letter including rectification applications, if applicable.
- Reviewing the assessment order issued by the Indian Revenue Authorities and determined in conjunction with Company, the need to challenge such order in appeal.
- Drafting of appeal papers and online submission of same
- Representation/virtual meetings before appellate authorities and discussions with the authorities specified above to discuss and file the technical and factual submissions relating to appellate matters;
Our Key Differentiators
- Experienced professionals who act as trusted advisors to clients on Direct tax matters
- Time-bound deliverables
- Interpretation of judicial pronouncements regularly
- Research-based submissions
- Transparent and Ethical dealing
- Regular updates to clients
- Systematic Liaising and follow up with tax authorities
Recently, Central Board of Direct Taxes has introduced new form of Income Tax Assessment in India which is called as E-assessment or electronic assessment.
What is meaning of E assessment?
As the name suggests E-assessment means that now, all Income tax assessment process would be conducted electronically.
It is done through the registered account of the taxpayer or assessor in the tax filing portal. It is a kind of e-proceeding proposed in India by the Finance Ministry, in order to simplify the assessment process that was conducted manually till now.
There would be no human interface between the taxpayer and the tax authorities are involved in this new assessment procedure scheme. The e-assessment has to be made in respect of such territorial areas; or persons or class of persons; or incomes or class of incomes; or cases or class of cases as specified by the Board.
What is organizational structure under new E assessment scheme?
CBDT) has set up some centers and units for carrying out the process of E-assessment. These are:
- 1 National e-Assessment Center (NeAC)
- 8 Regional e-assessment Centers (ReAC)
- Assessment units
- Verification units
- Technical units
- Review units
What would be steps or process involved in E assesement?
Following steps would be involved in E assessment process:
- Serving of Notice and Response by NeAC to assesse
- Assessee need to reply to notice within 15 days
- Allocation of Cases by NeAC to any specific ReAC assessment unit through automatic system.
- Initialization of Assessment Procedure by ReAC
- ReAC will make request to NeAC for obtaining information or evidences or documents from the assessee
- NeAC then issues a proper notice to the assesse for furnishing all information/documents
- NeAC allocates the verification unit to carry out the required verification and enquiry.
- NeAC then allocates any one of the ReAC technical unit to assist the assessment unit.
- Assessment unit drafts assessment order and sends a copy of such order to the NeAC.
- The NeAC allocates the review unit to review the drafted assessment order.
- In case modification required in order, NeAC sends back the drafted assessment order to the assessment unit for modification
- The modified order is send to assessee for which he has to furnish a response.
- NeAC after completing the assessment shall transfer all records pertaining to assessment to concerned AO for imposing penalty, collecting demand etc
- The National e-assessment Centre may at any stage of the assessment,transfer the case to the Assessing Officer having jurisdiction over such case if considered necessary,
How can EzyBiz India Help
We are leading Income Tax Assessment Consultant and assist both domestic and multinational clients in providing response to all types of Income Tax Notices. We help our clients in drafting researched based submissions to various queries raised by tax authorities and also represent our clients before Income Tax authorities as and when required.
With our expert team and Chartered Accountants and Tax Consultants and vast experience and expertise in handling Income tax Assessment and Litigation, we provide one window solution to our clients in handling Income Tax Notices. We provide expert E-assessment service to our clients at all levels like during assessment proceedings, appellate proceedings before CIT (A). We also assist our clients in Transfer Pricing Assessments.
E-Assessment Service has been our forte for last 15 years. We have in depth knowledge and acumen and provide complete handholding to both domestic and international clients at time of tax assessment and litigation. As an expert e-assessment service provider, we have always tried to make our clients more compliant and powerful so that they continue to operate their business and handle the taxation matters hassle free with our services.
E-Assessment is an assessment which will be done electronically by Income Tax Department with effect from Notification No. 61/2019 issued dated 12t September, 2019. Till now, all the Income Tax Assessments were done manually but from September 2019 onwards, all assessments need to be done online only. It would be faceless assessment. Now, there is no need to interact the taxpayer with the Tax Authorities. Everything is to be done electronically.
Following assessments have been covered e-assessment:
- Self-Assessment under section 143(1) of Income Tax Act, 1961
- Scrutiny Assessment under section 143(3) of Income Tax Act, 1961
- Best Judgement Assessment under section 144 of Income Tax Act, 1961
- Income Escaping Assessment under section 147 of Income Tax Act, 1961
- Penalty proceedings under section 271, 274, 279 of Income Tax Act, 1961