E-AssessmentScheme2019AshishAbrol

LegalFramework

• Section 143(3A) & (3B) of the IT Act empowerednotification of• Eliminating interface between AssessingOfficer and Assessee to the extenttechnologically feasible• Optimising the utilisation of resources througheconomies of scale and functionalspecialisation• Introducing team based assessment withdynamic jurisdiction

• E-assessment Scheme 2019 notified on12.09.2019

2

Scheme

• Inphasedmanner• FirstPhaseonly58,319cases• Secondphaseothercasesincludingcomplexcases

• SomecasesasofnotnottobedonethroughFacelessAssessment• Search,Difficultcasesetc.

• FacelessQua Assesseenotqua department• AssesseewontknowAssessmentUnit

• NoticeswillbeissuedonlythroughNeAC

Phase1

E-AssessmentScheme2019OrganisationStructure

• National e-AssessmentCenter (NeAC)– Headed by Pr. CCIT– Located at Delhi

• 8 Regional e-AssessmentCenters (ReAC)– Headed by CCIT– Located at Delhi,

Mumbai, Chennai,Kolkata, Ahmedabad,Pune, Bangalore andHyderabad

Pune

Delhi

5

E-Assessment2019Ecosystem

Nationale-AssessmentCentre

(NeAC)

Taxpayer

ü NoHumaninterfaceü DynamicJurisdictionü TeamBasedWorkingü FunctionalSpecialisation

Regionale-AssessmentCentre

(ReAC)

AssessmentUnit

AssessmentUnit

AssessmentUnit

AssessmentUnit

6

E-Assessment2019Ecosystem

Nationale-AssessmentCentre

(NeAC)

Taxpayer

ü NoHumaninterfaceü DynamicJurisdictionü TeamBasedWorkingü FunctionalSpecialisation

Regionale-AssessmentCentre

(ReAC)

AssessmentUnit

VerificationUnit

TechnicalUnit

ReviewUnit

7

FunctionsofNeAC• Specify format, mode, procedure and processes• Send all notices/communication electronically• Use automated allocation system• Assign cases to assessment unit• Allocate cases to verification unit, technicalunit• Allocate idebntified draft assessment ordersfor review

• Providing opportunity to taxpayer where draftAssessment Order prejudicial to Assessee• Finalize assessment orders• Transfer all electronic records to jurisdictionalAO for post assessment work

8

Regionale-AssessmentCenters(ReAC)CCIT

PCIT

AssessmentUnit

Addl./JCIT

DC/ACIT ITO ITO

VerificationUnit

Addl./JCIT

DC/ACIT DC/ACIT

TechnicalUnit

Addl./JCIT

DC/ACIT DC/ACIT

ReviewUnitITO(HQ)

Addl./JCIT

DC/ACIT ITO ITO

ITO(HQ)

9

FunctionsofReACs

• Assessment Unit – Identify issues, seek informationand analyse material to frame draft assessmentorders• Verification Unit - Conduct enquiry, examination ofbooks of account, examination of witnesses andrecording of statement (through VC)• Technical Unit – Provide advice on legal, accounting,forensic, Information Technology, Valuation, TransferPricing, Data Analytics etc.• Review Unit – Review of Draft Assessment Order –Whether material evidence brought on record, pointsof facts and law incorporated, application judicialdecisions considered, arithmetic correctness etc.

10

Process• NeAC IssuesnoticeDigitallySignedbytheAO• CanberemovedfromFacelessAssessmentifnecessary/expedientininterestofRevenue

Phase2

WideStakeholderConsultation• Shri.N.CHegde,ChairmanDirectTaxesCommitteeofICAIandteam• Shri.AshishChauhan, ManagingDirectorandCEOBombayStockExchange,• ShriNajunda Prasad&D.MBhattad AllIndiaFederationofTaxPractitioners• Shri.VenkatNarayanVP&PrincipalArchitect,Infosys• ShriPramodKumar,Shri.VivekRaghvan UIDAI• Shri.R.KMishra,CIT(CPC),ShriYogeshPande,Pr.CITBengalurunumberofAOs• Auditors/TaxPractitionershandlingAgriculturalIntermediaries• LargenumberofotherCharteredAccountant,TaxPractitioners,ProfessionalsintheAccountingandAuditSoftwareIndustries.• 256differentcomputerizedaccountingpackagesand3CustomizedAccountsAuditSoftware’shavebeenexamined

E-AssessmentIssuesIdentified• RecordsuploadedOnlineinscanned/pdfformnotmachinereadable• Assessmentdonebymanualinspectionofcomputerizedbooks,non-standardizeduncontrolled• TaxPayers/consultantsComplainof• repeateduploadingofvoluminousscanneddocuments.• Adjournments/differentdetailssought• Lackofopportunitytoexplain- needforpersonalhearing

• AssessingOfficers• NoStructuredConsumableinputs• BooksdigitalandScrutinypracticesManual• LittleorNoanalytictechnology

ComputerizedAccountsScenario• AfterGSTdeeppenetrationofComputerisedaccountsevenwithagrarianintermediary• Almost 95%maintain computerisedbookssmalltaxpayersSpreadsheetsExcel/Access.

• 90-92%ofSMEuseTallywhichprovidesXMLandCSVreportreports• SomeSMEusecloud-basedpackages(E-booksetc)allprovideCSV/XML.• All264standardaccountingsystems andcustomizedaccountsSAP/ERP/opensource• enabledeitherforXMLorforCSVbased reportgeneration.

Contd.• E-ReturnsarefiledthroughIndependentSoftwaredeveloperssuchasWinmann SoftwarehavetheabilitytopullthedataforfilingreturnsinXML• Datathatmaycalledduringfacelessassessment• `accountingData• ListofbooksofAccountsanddataXML/JSON• non-accountinginformation• Thatcanbee-enabled(bank/GSTreconciliationetc)• Wherescannedcopiesaretobefiled.