Special Audit and Inventory Valuation under Income-tax Introduction The Assessing Officer (AO) may direct an assessee to get accounts audited or inventory valued if the complexity of accounts, volume of transactions, or nature of business necessitates such action. This power is exercised in a faceless manner. Conditions for Special Audit or Inventory Valuation The AO… Read More »

Enquiry before Assessment Introduction The Assessing Officer (AO) is empowered to conduct an enquiry to obtain complete information regarding a taxpayer’s income or loss. The AO can issue notices, direct special audits, or refer matters to a Valuation Officer. These powers are exercised in a faceless manner. Powers of the Assessing Officer Notice to File… Read More »

Self-Assessment Introduction Self-assessment requires an assessee to compute taxable income and tax liability before filing the Income-tax return. Failure to discharge this obligation may result in being treated as an assessee-in-default. Computation of Income and Tax Self-assessment involves calculating total income under the five heads of income: Salary House Property Profits and Gains of Business… Read More »

ASSESSMENT OF INCOMES Introduction Income-tax assessment involves verifying and reviewing the information furnished by the assessee in the Income-tax return. The Income-tax Act prescribes various types of assessments, including Self-Assessment, Summary Assessment, Scrutiny Assessment, Best Judgment Assessment, and Income Escaping Assessment. Types of Assessment The term ‘assessment’ refers to the examination of a return of… Read More »

Avoidance of Repetitive Appeals by Revenue To streamline litigation and avoid filing repetitive appeals on the same question of law, Section 158AB empowers the Revenue to defer the filing of an appeal in a subsequent case where an identical question of law is already pending in another case. Scope and Application –The provision applies where the Collegium… Read More »

Avoiding Repetitive Appeals by the Assessee To reduce litigation and avoid repetitive appeals on the same question of law, the Income-tax Act provides a mechanism wherein an assessee can voluntarily submit a declaration, confirming that the issue pending in a later year is identical to one already contested in a previous year. Upon acceptance of… Read More »

e-Dispute Resolution Scheme, 2022 The e-Dispute Resolution Scheme, 2022, notified via Notification No. 27/2022 dated 05.04.2022, provides a faceless framework for the resolution of specified disputes by the Dispute Resolution Committee (DRC). The DRC offers taxpayers an alternative remedy to avoid prolonged litigation by resolving eligible disputes arising from assessment and TDS/TCS-related orders. Preliminary Screening… Read More »

Dispute Resolution Committee (DRC) The Dispute Resolution Committee (DRC) provides a mechanism for specified taxpayers to resolve disputes arising from assessment orders or TDS/TCS-related orders through a faceless process. Constitution and Composition of DRC –Constituted by the Central Government for each region under the jurisdiction of the Principal Chief Commissioner of Income-tax. Each DRC comprises:… Read More »

Faceless Effect of Orders The Central Government is empowered to make a scheme to give effect to the orders passed by the JCIT(A), CIT(A), ITAT, High Court, or Supreme Court or revisionary orders passed under Sections 263 or 264 to enhance efficiency, transparency, and accountability by: o Minimising physical interface during appellate or revisional proceedings; o Optimising resource utilisation… Read More »