Objective & Agenda: To analyse E-Assessment Scheme, 2019 notified by CBDT on 12th September, 2019. To know the commencement, scope and procedure of E-assessment. To know different E-assessment centres set up by CBDT for doing E-assessment. Finally, to understand the power of CBDT to specify format, mode, procedure and process of doing E-assessment.

1. E-Assessment Scheme, 2019
CA. Divakar Vijayasarathy

2. Credits and Acknowledgments
Bharathi Priya R D
Jugal Gala

3. Legends used in the Presentation
AO Assessing Officer
CBDT Central Board of Direct Taxes
CG Central Government
ITD Income Tax Department
SMS Short Messaging Service
“Act” refers to The Income Tax Act, 1961
“Board” refers to Central Board of Direct Taxes (CBDT)

4. Presentation Schema
Assessment
Provisions for E-
Assessments
Introduction,
Relevant
Definitions & Scope
E-Assessment
Centres & Units
Procedure for
Assessment
Penalty
Proceedings for
Non-Compliance
Appellate
Proceedings
Exchange of
Communication
Authentication of
Electronic Record
Delivery of
Electronic Record
No Personal
Appearances
Power to Specify
Format, Mode,
Procedure &
Process
Applicability of
Existing Provisions
of the Act
Impact and Way
Forward

5. Assessment
Every taxpayer has to furnish the details of his income to the Income-tax Department
(ITD)
These details are to be furnished by filing his return of income
Once the return of income is filed by the taxpayer, the next step is the processing
of the return of income by the ITD
ITD examines the return of income for its genuineness and correctness
The process of examining the return of income by the ITD is called as
“Assessment”

6. Provisions for E-assessments
• Eliminating the interface between the Assessing Officer and the assessee to the
extent technologically feasible
• Optimising utilization of the resources through economies of scale and functional
specialization
• Introducing a team-based assessment with dynamic jurisdiction
Central Government may make a scheme for
the purpose of making assessment so as to
impart greater efficiency, transparency and
accountability by
Charging Section - Sec 143(3A)

7. Contd.
Honourable Finance Minister had confirmed faceless scrutiny assessment from Vijaya Dashmi, 2019 while
addressing press conference on economic reforms on 22.08.2019
The CBDT had issued the instructions and notice formats for conducting scrutiny assessments electronically
Under this initiative, CBDT has made it mandatory for the tax officers to take recourse of electronic
communications for all limited and complete scrutiny
As part of e-governance initiative to facilitate conduct of assessment proceedings electronically, ITD has launched
'E-Proceeding' facility
The Central Government may, notify that any of the provisions of this Act relating to assessment of total income or
loss shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the
notification
Effect of Existing Provisions to the Scheme - Sec 143(3B)

8. Introduction
In exercise of the powers conferred by Sec 143(3A) of the Act, the CG has announced the
E-assessment Scheme, 2019 (“the Scheme”)
CBDT has notified this Scheme on 12th September, 2019
It shall come into force on the date of its publication in the official gazette (12th
September, 2019)

9. Relevant Definitions
• Assessment of total income or loss of the assessee under Sec 143(3)-Scrutiny Assessment of the ActAssessment
• An algorithm for randomised allocation of cases, by using suitable technological tools, including artificial
intelligence and machine learning, with a view to optimise the use of resources
Automated
Allocation System
• An algorithm for standardised examination of draft orders, by using suitable technological tools, including
artificial intelligence and machine learning, with a view to reduce the scope of discretion
Automated
Examination Tool
• Authentication of any electronic record by a subscriber by means of an electronic method or procedureDigital Signature
• Assessment proceedings conducted electronically in 'e-Proceeding' facility through assessee's registered
account in designated portal (www.incometaxindiaefiling.gov.in)
E-assessment
• Data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or
computer generated micro fiche
Electronic Record
• Person who sends, generates, stores or transmits any electronic message or causes any electronic message to
be sent, generated, stored or transmitted to any other person but does not include an intermediary
Originator
• Any communication sent to the assessee, by way of SMS on his registered mobile number, or by way of update
on his Mobile App, or by way of an email at his registered email address, so as to alert him regarding delivery
of an electronic communication
Real Time Alert

10. Scope of the Scheme
The assessment under this Scheme shall be made in respect of such territorial area, or persons or class
of persons, or incomes or class of incomes, or cases or class of cases, as may be specified by CBDT

11. E-assessment Centres
• To facilitate the conduct of e-assessment proceedings in a centralised manner
• Vested with the jurisdiction to make assessment in accordance with the provisions of this
Scheme
National e-
assessment Centre
• To facilitate the conduct of e-assessment proceedings in the cadre controlling region of a
Principal Chief Commissioner
• Vested with the jurisdiction to make assessment in accordance with the provisions of this
Scheme
Regional e-
assessment Centre
CBDT may set up the following e-assessment centres and specify their respective jurisdictions

12. E-assessment Units
• To perform the function of
• Making assessment
• Identification of points or issues material for the determination of any liability (including refund)
• Seeking information or clarification on points or issues identified
• Analysis of the material furnished
• Such other functions as may be required for the purposes of making assessment
Assessment Units
• To perform the function of
• Verification
• Enquiry
• Cross verification
• Examination of books of accounts
• Examination of witnesses and recording of statements, and
• Such other functions as may be required for the purposes of verification
Verification Units
CBDT may set up the following e-assessment units and specify their respective jurisdiction

13. Contd.
• To perform the function of providing
• Technical assistance(any assistance)
• Advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data
analytics, management or any other technical matter
Technical Units
• To perform the function of
• Review of draft assessment order
• Checking whether the relevant and material evidence has been brought on record
• Checking whether the relevant points of fact and law have been duly incorporated in the draft
order
• Checking whether appropriate additions or disallowances have been included in the draft
order
• Checking whether the applicable judicial decisions have been dealt in the draft order
• Checking for arithmetical correctness of modifications proposed and
• Such other functions as may be required for the purposes of review
Review Units

14. Authorities
• Additional Commissioner or Additional Director or Joint Commissioner or Joint
Director
• Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant
Director, or Income-tax Officer
• Such other income-tax authority, ministerial staff, executive or consultant, as
considered necessary by the Board
Assessment Unit /
Verification Unit /
Technical Unit / Review
Unit shall have

15. Communication
All
communication
shall be through
the National e-
assessment
Centre
Among all
the units
With the
Assessee
With any
other
person
For collecting information or
documents or evidence or any other
details for the purposes of making an
assessment

16. Procedure for Assessment
National e-Assessment Centre shall serve a notice on the assessee under Sec 143(2) (Mandatory notice for scrutiny
assessment) specifying the issues for selection of his case for assessment
The assessee may, within 15 days from the date of receipt of notice, file response to the National e-assessment Centre
The National e-assessment Centre shall assign the case selected for the purposes of e-assessment under this Scheme to a
specific assessment unit in any one Regional e-assessment Centre through an automated allocation system

17. Assessment Unit
Where a case is assigned to the assessment unit, it may make a request to the National e-assessment Centre for
• Obtaining such further information, documents or evidence from the assessee or any other person
• Conducting of certain enquiry or verification by verification unit and
• Seeking technical assistance from the technical unit
Where the above mentioned first request has been made, the National e-assessment Centre shall issue appropriate notice
or requisition to the assessee or any other person for obtaining the information, documents or evidence requisitioned by
the assessment unit
Where the above mentioned second and third request has been made, the request shall be assigned by the National e-
assessment Centre to a verification unit / technical unit respectively in any one Regional e-assessment Centres through an
automated allocation system

18. Contd.
The assessment unit shall, after taking into account all the relevant material available on the record, make in writing, a draft
assessment order either accepting the returned income of the assessee or modifying the returned income of the assesse,
as the case may be, and send a copy of such order to the National e-assessment Centre
The assessment unit shall additionally provide details of the penalty proceedings to be initiated, if any
The National e-assessment Centre shall examine the draft assessment order in accordance with the risk management
strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to –
• finalise the assessment as per the draft assessment order and serve a copy of such order and notice for initiating
penalty proceedings, if any, to the assessee, along with the demand notice or
• provide an opportunity to the assessee, in case a modification is proposed, by serving a notice calling upon him to
show cause as to why the assessment should not be completed as per the draft assessment order; or
• assign the draft assessment order to a review unit in any one Regional e-assessment Centre, through an automated
allocation system, for conducting review of such order

19. Review Unit
The assessment unit shall, after considering the modifications suggested by the review unit, send the final draft assessment
order to the National e-assessment Centre
The National e-assessment Centre shall, upon receiving suggestions for modifications from the review unit, communicate
the same to the assessment unit
The National e-assessment Centre shall, upon receiving concurrence of the review unit, follow the procedure as mentioned
in earlier slide (finalise / provide an opportunity to the assessee)
The review unit shall conduct review of the draft assessment order, referred to it by the National e-assessment Centre
whereupon it may decide to
concur with the draft assessment order and intimate the
National e-assessment Centre about such concurrence or
suggest such modification, as it may deem fit, to the draft
assessment order and send its suggestions to the National e-
assessment Centre

20. Final Draft Assessment Order
The National e-assessment Centre shall, upon receiving final draft assessment order, follow the procedure as
mentioned in earlier slides (finalise / provide an opportunity to the assessee)
The assessee may furnish his response against the show cause notice to the National e-assessment
Centre on or before the date and time specified in the notice
The National e-assessment Centre shall-
• in a case where no response to the show-cause notice is received, finalise the assessment as per the draft
assessment order or
• in any other case, send the response received from the assessee to the assessment unit

21. Revised Draft Assessment Order
The assessment unit shall, after taking into account the response furnished by the assessee, make a revised draft
assessment order and send it to the National e-assessment Centre
The National e-assessment Centre, upon receiving the revised draft assessment order, shall-
• in case no modification prejudicial to the interest of the assessee is proposed, finalise the assessment
• in case a modification prejudicial to the interest of the assessee is proposed, provide an opportunity to the assessee
• the response furnished by the assessee shall be dealt with the same procedure as mentioned in previous slides

22. Completion of Assessment
• imposition of penalty
• collection and recovery of demand
• rectification of mistake
• giving effect to appellate orders
• submission of remand report, or any other report to be furnished, or
any representation to be made, or any record to be produced before
the Commissioner (Appeals), Appellate Tribunal or Courts
• proposal seeking sanction for launch of prosecution and filing of
complaint before the Court
The National e-assessment Centre shall,
after completion of assessment, transfer
all the electronic records of the case to
the AO having jurisdiction over such
case, for –
Notwithstanding anything contained above, the National e-assessment Centre may at any stage of the assessment, if
considered necessary, transfer the case to the AO having jurisdiction over such case

23. Understanding the Flow of Procedure
National E-assessment
Centre
Serve a notice to the
assessee
Assessee must
respond within 15 days
Assessment unit
Request for information/
documents/evidence/
enquiry/verification/
technical assistance
Draft assessment order –
accepting/modifying and penalty
proceedings
Finalise Opportunity to
assessee
Review unit
Concur or
modifications
1
2
3
5Assign the case
4
6 7
National E-assessment
Centre
Concur 8
Modifications 9Assessment unit
Final
order
10
11
12
Response from assessee
to assessment unit
Revision of assessment
order
13
No Prejudicial –
Finalise
Prejudicial –
Opportunity
14
After receiving
information, getting
enquiry results and
technical assistance

24. Penalty Proceedings for Non-Compliance
The National e-assessment Centre shall levy the penalty as per the said draft order of penalty and serve a copy of the same
on the assessee or any other person, as the case may be
The said unit shall
make a draft order of penalty and send a copy of such draft
to National e-assessment Centre or
drop the penalty after recording reasons, under intimation
to the National e-assessment Centre
The response to show - cause notice shall be sent by the National e-assessment Centre to the concerned unit which has
made the recommendation for penalty
The National e-assessment Centre shall, on receipt of such recommendation, serve a notice on the assessee or any other
person, calling upon him to show cause as to why penalty should not be imposed
Any unit may, for non-compliance of any notice, direction or order, send recommendation for initiation of any penalty
proceedings under Chapter XXI (Penalties Imposable) of the Act to the National e-assessment Centre, if it considers
necessary or expedient to do so

25. Appellate Proceedings
An appeal against an assessment made by
the National e-assessment Centre under
this Scheme shall lie before the
Commissioner (Appeals) having
jurisdiction over the jurisdictional AO and
Any reference to the Commissioner (Appeals) in
any communication from the National e-
assessment Centre shall mean such jurisdictional
Commissioner (Appeals)

26. Exchange of Information – Electronic Mode
All communications between the National e-assessment Centre and the assessee, or his authorised
representative, shall be exchanged exclusively by electronic mode
All internal communications between the National e-assessment Centre, Regional e-assessment Centres and
various units shall be exchanged exclusively by electronic mode.

27. Authentication of Electronic Record
An electronic record shall be authenticated by
the originator by affixing his digital signature
If the originator, being the
assessee or any other
person, such authentication
may also be done by
electronic signature or
electronic authentication
technique

28. Delivery of Electronic Record
Every notice or order or any other electronic communication under this Scheme shall be delivered to the addressee, being
the assessee, by way of-
• placing an authenticated copy in the assessee's registered account or
• sending an authenticated copy to the registered email address or
• uploading an authenticated copy on the assessee’s Mobile App and
• followed by a real time alert
Every notice or order or any other electronic communication under this Scheme shall be delivered to the addressee, being
any other person, by sending an authenticated copy to the registered email address of such person, followed by a real time
alert
The Assessee shall file his response through his registered account, and once an acknowledgement is sent by the National
e-assessment Centre containing the hash result generated upon successful submission of response, the response shall be
deemed to be authenticated

29. No Personal Appearances
A person shall not be required to appear either personally or through authorised representative in connection with any
proceedings under this Scheme before the income-tax authority at the National e-assessment Centre or Regional e-
assessment Centre or any unit set up under this Scheme
In case assessee is provided an opportunity is provided the assessee or his authorised representative, as the case may be, it
shall be entitled to seek personal hearing exclusively through video conferencing, including use of an telecommunication
application software which supports video telephony
Any examination or recording of the statement of the assessee or any other person (other than statement recorded in the
course of survey under Sec 133A of the Act) shall be conducted by an income-tax authority in any unit under this Scheme,
exclusively through video conferencing, including use of any telecommunication application software which supports video
telephony
The Board shall establish suitable facilities for video conferencing to ensure that the assessee, or his authorised
representative, or any other person is not denied the benefit of this Scheme merely on the consideration that it does not
have access to video conferencing at his end

30. Power to Specify Format, Mode, Procedure
and Processes
Service of the notice, order or any other communication
Receipt of any information or documents from the person in response to the notice, order or any other communication
Issue of acknowledgment of the response furnished by the person;
Provision of “e-proceeding” facility including login account facility, tracking status of assessment, display of relevant
details, and facility of download
Accessing, verification and authentication of information and response including documents submitted during the
assessment proceedings
Receipt, storage and retrieval of information or documents in a centralised manner
General administration and grievance redressal mechanism in the respective Centres and units
The Principal Chief Commissioner or the Principal Director General, in charge of the National e-assessment Centre shall lay
down the standards, procedures and processes for effective functioning of the centres and units, in an automated and
mechanised environment, including format, mode, procedure and processes in respect of the following

31. Applicability of Existing Provisions of the Act
Following provisions of the Act shall apply to the E-assessment Scheme subject to exceptions, modifications and adaptations for the
provisions of the Scheme
 Clause (7A) of Sec 2 – Definition of AO
 Sec 92CA – Reference to Transfer Pricing Officer
 Sec 120 – Jurisdiction of income-tax authorities
 Sec 124 – Jurisdiction of AOs
 Sec 127 - Power to transfer cases
 Sec 129 - Change of incumbent of an office
 Sec 131 - Power regarding discovery, production of evidence,
etc.
 Sec 133 - Power to call for information
 Sec 133A - Power of survey
 Sec 133C - Power to call for information by prescribed income-
tax authority
 Sec 134 - Power to inspect registers of companies
 Sec 140 - Return by whom to be verified
 Sec 142 - Inquiry before assessment
 Sec 142A - Estimation of value of assets by Valuation Officer
 Sec 143 - Assessment
 Sec 144A - Power of Joint Commissioner to issue directions in
certain cases
 Sec 144BA - Reference to Principal Commissioner or
Commissioner in certain cases
 Sec 144C - Reference to dispute resolution panel
 Sec 246A - Appealable orders before Commissioner (Appeals)
 Sec 282 - Service of notice generally
 Sec 282A - Authentication of notices and other documents
 Sec 283 - Service of notice when family is disrupted or firm,
etc., is dissolved
 Sec 284 - Service of notice in the case of discontinued business
 Chapter XXI - Penalties Imposable
In exercise of powers conferred by sub-section (3B) of 143 the Central Government has made the following directions

32. Impact and Way Forward
Geographical barriers ruled out
Time, efforts and cost saved – assessee as well as revenue
Requirement of strong and bug-free IT platform
Good internet connectivity across India, a pre-requisite
Storage of huge amount of data on cloud – instances of data hacking
Interesting to see bureaucratic attitude of authorities towards the initiative
Recomputation, re-assessment and appeals would be challenging for proceedings completed through e-assessment

33. Thank You
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