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
Faceless Assessment Scheme
With Effect from 1st April 2021, new scheme has been introduced in India for doing Income Tax Assessment in faceless manner. Also, called as Faceless Assessment.
Accordingly, new section 144B has been introduced under Income Tax Act which deals with Faceless Assessment.
Faceless Appeal Scheme
In the Union Budget 2020, the Hon’ble Finance Minister has extended the faceless assessment proceedings to CIT (A) proceedings in order to eliminate the human interface from the system.
Accordingly, amendments were made in section 250 of the Income-tax Act, 1961 (‘the Act’) in order to enable the Central Government to notify scheme for faceless appeals.
CBDT has notified the scheme – ‘Faceless Appeal Scheme, 2020’ (‘FAS’) under section 250(6B) of the Act vide Notification No. 76/2020 dated 25 September 2020.
Under the FAS, first level Income Tax appeals i.e. appeals before the CIT(A) will be finalized in a faceless manner with the exception of certain appeals relating to serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act.
- Almost all type of assessments will now be done online in a faceless manner like Scrutiny assessment u/s 143(3), best judgment assessment u/s 144, reassessment u/s 147/148, etc
- Penalty proceedings will also be done in a faceless manner.
- Intimation u/s 143(1) will continue to be sent as done presently i.e online
Transfer Pricing assessment are still on manual manner but slowly and gradually it will also be done in faceless manner.
- National Faceless Assessment Centre (NFAC) has been appointed which will serve notice to assessee u/s 143(2). It will act as a nodal point for the appellate proceedings and as a communication gateway between assesse and the assessment authorities.
- Regional Faceless Assessment Centre (“RFAC”), which will facilitate conduct of assessment proceedings through its Assessment units.
- Other units are Verification units, Technical Units, and Review Units which can provide assistance to assessment units for smooth conduct of the assessment.
- National Faceless Appeal Centre (“NFAC”), which will act as a nodal point for the appellate proceedings and as a communication gateway between Appellant and the appellate authorities.
- Regional Faceless Appeal Centre (“RFAC”), which will facilitate conduct of appeal proceedings.
- Appeal Units (“AU”), which is entrusted to perform functions such as admitting additional grounds of appeal, making further inquiry, analysing of the material furnished by the appellant, reviewing the draft orders, disposal of appeal and any other functions as may be required for the purposes of this FAS.
How can EzyBiz India Help?
It may be noted that as per new schemes introduced by CBDT, from now onwards, all the Income Tax Assessment and appeal proceedings will be online, faceless, and on a merit basis.
Accordingly, expert knowledge of Income Tax Law and drafting skills will play major role in filing replies to assessment/appeal notices and winning the case on merits.
Personal contacts and personal face value will have no role to play.
We are a leading Income Tax Assessment and litigation Consultant with more than 18 years of experience in handling assessment and litigation matters and assist both domestic and multinational clients in providing response to all types of Income Tax Notices.