Assesses need to be cautious in faceless assessments

 

AS THE era of faceless assessment has begun, the assesses need to be more cautious, diligent and comply with the procedure specified under the Faceless Assessment Scheme 2019 revealed CA Ashok Mehta, Mumbai while addressing a webinar on ‘Faceless assessment, reopening of cases and TDA compliances’ organised by COSIA Vidarbha Chapter in association with The Chamber of Tax Consultants.

CA Mehta said that the notices are being received only through mail. Once an assessment notice is received, it would be prudent to check the online portal on regular intervals to avoid litigation and issues.

“The faceless assessment system developed is good but not perfect and any error by system or by the assessing officer (AO) will have to be paid for by assessee, in addition to taxes paid by him,” CA Mehta said.

“It is important for the assessee to understand that the assessing officer (AO) is not familiar with the assesse’s accounting system or the business. It is assessee’s duty to explain the issue in a simple and precise manner with evidences in an organised manner,” he noted.

On the issue of reopening of cases, CA Mehta said an assessee could receive a notice under section 148 in case the AO believes that such an individual’s income chargeable to tax might have escaped assessment. Nevertheless in the Union Budget 2021, small relief regarding reopening of assessments has been provided by reducing the time limit to reopen cases from last 6 years to 3 years. But in case of serious tax evasion the assessment can be reopened until 10 years, only when concealment of income is more than 50 lakh.

Regarding tax deducted at source (TDS) and tax collected at source (TCS) compliances a new section 206C(1H) has been introduced from October 1, 2021 which requires seller to collect TCS in case a seller receives any amount as consideration for sale of goods of the value or aggregate of such value exceeding Rs 50 lakh in any previous year.

At the outset, Chairman of COSIA Vidarbha CA Julfesh Shah said that faceless assessment being a new concept, needs to be properly understood and proper procedures as per guidelines need to be followed to avoid litigations and tax burden.

CA Ketan Vajani, President of The Chamber of Tax Consultants said that there are several issues in faceless assessments, reopening of cases, issues in TDS/TCS and problem of bogus bills which needs to be addressed by the experts on the subject and guide assesses in the proper manner.

Pranav Ambaselkar, Secretary COSIA Vidarbha conducted the proceedings while CA Nishtha Pandya, Chairperson, Membership Committee, CTC proposed a vote of thanks.