As the era of Faceless Assessment has begun, the assesses need to be more cautious & deligent & comply with the procedure specified under the faceless assessment scheme 2019 remarked expert CA Ashok Mehta, Mumbai while addressing a webinar on faceless assessment, Reopening of cases & TDA compliances organised by COSIA Vidarbha chapter in association with The Chamber of Tax Consultants.
He further said that the notices are being received only through mail and hence once an assessment notice is received, it would be prudent to check the online portal on regular intervals to avoid litigation and issues. The system developed is good but not perfect and error by system or by the officer will have to be paid for by assessee, in addition to the taxes paid by him. The online system is convenient, the issue raised will be simple and uncomplicated who have an understanding of business and accounting system.
It is imperative that assessee understand that the AO does not understand either assesse’s accounting system or the business, it is possible that he does not understand accounts at all. It is assessee’s duty to explain the issue in a simple and precise manner with evidences which are organized. The system provides for checks and requires the AO to issue notices and draft orders before change is made to the returned income. It is assesses duty to see that the opportunity provided is availed and all possible details are provided by assessee or his authorized representative in the correct manner.
CA Mehta further said that regarding reopening of cases, an assessee could receive a notice under section 148 in case the assessing officer 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 the 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. Mr. Mehta further said that regarding TDS/TCS compliances, a new section 206C(1H) is introduced effective from 1 Oct 2021 which requires seller to collect TCS in case a seller receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakhs rupees in any previous year. He also discussed on length about various provisions and its impact on business relating to TDS and TCS.
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 needs to be followed to avoid litigations and tax burden. He said that COSIA Vidarbha is always at the forefront in organising such important and useful programmes for benefit of its members. 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 properly addressed by the experts on the subject & guid the assesses in the proper manner. Mr. Pranav Ambaselkar, Secratery COSIA Vidarbha conducted the proceedings while CA Nishtha Pandya, Chairperson, membership committee, CTC proposed a formal vote of thanks. Programme was well attended by large number of entrepreneurs, Industrialists, Tax Consultants and others.