CBDT issues New Order Outlining Circumstances for Enquiry and Verification by Verification Unit [Read Order]

The Central Board of Direct Taxes ( CBDT ) has issued a new order dated 1st August 2024 specifying the circumstances for the purposes 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 undertake enquiries or verification functions under the following circumstances:

1. Non-availability of digital footprint in respect of the assessee or any other person,
2. Electronic or Online verification is not possible on account of no response to notice issued to the assessee or any other person,
3. Physical verification of assets or premises or persons is required, regardless of the presence of digital footprint;

Section 144B was introduced into the Income Tax Act via the National e-Assessment Scheme. The government’s intention behind this was to improve transparency, efficiency, and accountability in income tax assessments.

This section empowers the Central Board of Direct Taxes ( 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 scheme’s main objective is to eliminate human involvement, minimize discretion, and enhance transparency in the assessment process.

Taxpayers are not required 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.

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