e-Assessment of Income Escaping Assessment Scheme, 2022
e-Assessment of Income Escaping Assessment Scheme, 2022
The Finance Bill 2022 has proposed to bring reassessment proceedings within the ambit of faceless assessment. In line with the amendment proposed by the Finance Bill 2022, the Central Board of Direct Taxes (CBDT) vide a Notification No. 18/2022 dated 29th March 2022 notified e-Assessment of Income Escaping Assessment Scheme, 2022 under section 151 of the Income-tax Act, 1962 (‘Act’). The Scheme is applicable with effect from 29-03-2022.
The Gist of e-Assessment Scheme, 2022
To bring transparency to assessment proceedings, the Faceless Assessment Scheme, 2019 was introduced. Subsequently, the Taxation & Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020 codified this Scheme by introducing section 144B in the Income-tax Act, 1961 (IT Act)
Section 151A of the IT Act grants powers to the Central Government to make a scheme for assessment, reassessment, or re-computation under section 147 of the Income Tax Act or issuance of notice under section 148 of the IT Act or sanction for the issue of such notice under section 151 of the IT Act. In this regard, recently the Central Board of Direct Taxes (CBDT) notified the e-Assessment of Income Escaping Assessment Scheme, 2022.
Section 151A of the Income Tax Act
Section 151A of the Income Tax Act empowers the Central Government to make a scheme for the purpose of:
- Assessment, reassessment, or recompilation under Section 147 (Income-escaping assessment);
- Issuance of notice under Section 148 for conducting income-escaping assessment; or
- Conducting of inquiries or issuance of show-cause notice or passing of order under Section 148A; or
- Sanction under Section 151 for the issue of notice under section 148 for conducting the income-escaping assessment.
Such a Scheme is to be formed to impart greater efficiency, transparency, and accountability by:
- Eliminating the interface between the Income-tax authority and the assessee or any other person to the extent technologically feasible;
- Optimizing utilization of the resources through economies of scale and functional specialization; and
- Introducing a team-based assessment, reassessment, recomputation, or issuance or sanction of notice with dynamic jurisdiction.
Now, the Central Government has notified the e-Assessment of Income Escaping Assessment Scheme, 2022 for the purpose of these provisions. The Scheme is applicable with effect from 29-03-2022.
Scope of the e-Assessment of Income Escaping Assessment Scheme, 2022
The Scheme provides that assessment, reassessment, or recomputation under Section 147 and issuance of notice under Section 148 shall be done:
(a) Through automated allocation, in accordance with the risk management strategy formulated by the Board as referred to in section 148 for issuance of a notice, and
(b) In a faceless manner, to the extent provided in Section 144B with reference to making assessment or reassessment of total income or loss of assessee.
The Scheme shall come into force from 29 March 2022.
The official Notification of the Central Board of Direct Taxes (CBDT) is as follows:
e-Assessment of Income Escaping Assessment Scheme, 2022.