Big relief for individuals! I-T scrutiny turns faceless with e-proceeding facility

NEW DELHI: In a big relief for individuals facing income-tax (IT) scrutiny, the I-T department has said all further interaction would happen only through ‘Eproceeding’ facility, making the entire process faceless.

In a direction issued to the field officers Monday, the Central Board of Direct Taxes (CBDT) has said this will not apply to search-related assessments. The department said in a letter that “except for search-related assessments, proceedings in other pending scrutiny assessment cases shall be conducted only through the ‘E-proceeding’ functionality in ITBA/e-filing”.

In his budget speech, finance minister Arun Jaitley had promised faceless assessment. “I propose to amend the I-T Act to notify a new scheme for assessment where the assessment will be done in electronic mode which will almost eliminate person-to-person contact leading to greater efficiency and transparency,” he had proposed.


According to the letter, if an assesse objects to ‘E-Proceeding’ then the case may be put on hold for the time being. The Finance Act of 2016 had with effect from June 1, 2016, provided the enabling provision that “hearing” includes communication of data and documents through electronic mode. The revised format of notices under Section 143(2) had subsequently provided for E-Proceedings in scrutiny cases through the assessee’s e-filing account with the I-T department.

The latest communication now says such scrutiny will happen only through E-Proceeding. Only for stations that have limited bandwidth for e-communications, some relaxation has been given till March 31, 2018. All notices are required to be issued electronically to the e-filing account of the assesee. All orders, communications or notices issued to the assesee have to be signed digitally by the assessing officer.