New CBDT Order Specifies Circumstances for Verification Functions under Section 144B(3)(iii)
The Central Board of Direct Taxes (CBDT) has recently issued a significant new order dated 1st August 2024, outlining the specific circumstances for the purpose of enquiries or verification functions by the Verification Unit under Section 144B(3)(iii) of the Income Tax Act, 1961.
According to the order, the Verification Unit will carry out enquiries or verification functions under the following circumstances:
- Non-availability of Digital Footprint: In cases where there is no digital footprint available in relation to the assessee or any other person.
- Electronic or Online Verification Not Feasible: If electronic or online verification is not possible due to lack of response to a notice issued to the assessee or any other person.
- Physical Verification Required: Regardless of the existence of a digital footprint, when there is a necessity for physical verification of assets, premises, or persons.
Section 144B was incorporated into the Income Tax Act through the National e-Assessment Scheme, reflecting the government’s commitment to enhancing transparency, efficiency, and accountability in income tax assessments. This section empowers the CBDT to establish a faceless assessment scheme, enabling assessments to be conducted electronically without any face-to-face interaction between the taxpayer and the assessing officer.
The primary objective of the scheme is to eradicate human involvement, minimize discretion, and enhance transparency in the assessment process. Taxpayers are not mandated to be physically present or represented by authorized individuals during the assessment. All communications, including notices, questionnaires, and orders, are managed electronically through the taxpayer’s registered account on the income tax portal.
This new order by the CBDT marks another step towards the digital transformation of income tax processes, further streamlining and enhancing the efficiency and transparency of tax assessments for the benefit of taxpayers and the tax authorities alike.
