All About Review Unit under the Faceless Assessment Scheme

Under the faceless assessment scheme, there is a

1. Assessment Unit (AU)

2. Verification unit  (VU)

3. Review unit (RU)

Each units is connected through the centralized National Faceless center.

Let us know how the Review unit performs, its duties and mode of working  under the National Faceless center.

A Review Unit performs the function of review of the draft assessment order. The Principal Chief Commissioner of Income Tax, NeAC has laid down the SOP for the Review Unit. The SOPs provide the instructions in respect of handling of case received for review, preparation of review report and procedure for seeking clarification from Assessment Unit. The Principal Chief Commissioner of Income Tax, NeAC has laid down the following SOP for the Review Unit^:

(a) Handling of case received for Review;

(b) Preparation of Review Report; and

(c) Procedure for seeking clarification from AU.

The National e-Assessment Centre (NeAC) has also laid down the Standard Operating Procedures (SOPs) for other Units constituted for the faceless assessments.

The following procedure to be adopted by RU to handle the case allocated for review:

(a) On allocation of the case to RU, the RU is mandated to examine and verify if proper enquiry/verification has been done with respect to the issues/scenarios on the basis of which the case has been selected for limited/full scrutiny.

(b) The RU shall examine the case records to ascertain:

• Whether the relevant and material evidence to support the modification of income proposed by AU has been brought on record;

• Whether the issues on which addition or disallowance ought to have been made have been duly verified;

• Whether the relevant points of fact and law have been incorporated in the draft order;

• Whether the submissions and arguments of the assessee have been duly considered and rebutted;

• Whether the judicial decisions brought on record have been considered and applied in the draft order.

(c) The RU is also mandated to verify and check the arithmetical correctness of modifications proposed.

(d) In complete scrutiny cases, the RU must verify that all relevant issues that arise from the record have been examined and all additions to income or disallowances warranted by the facts on record have been made in the draft assessment order.

(e) The RU shall also examine and comment on whether the order contains any frivolous and high-pitched disallowances or additions to income.

(f) If the facts on record so warrant then the RU may suggest improvement of the contents of the order so that the draft assessment order is complete and self-explanatory.

(g) Review report should generally be disposed of on First-In First-Out basis. The Review report may be ideally sent to the AU within 15 days of its receipt. The time may be restricted, if the time barring date so demands.

The following procedure to be adopted by RU to prepare the review report:

(a) Review Report should be concise, specific to the point, speaking and self-contained. Vague and impractical suggestions, which are difficult to implement by the AU/VU should not be made in the report.

(b) It may be kept in mind that the case shall be transferred to a new AU if any suggestion for modification is made in the report. Hence frivolous suggestions which do not have much effect on quality of case should be avoided.

(c) Any suggestion for modification by RU having the potential impact of Rs. 1 Crore or more on taxable income of the assessee vis-a-vis income determined by AU in draft assessment order should be issued only after obtaining prior approval of the Pr.CIT(RU).

In case of any ambiguity, the RU may seek clarification from the AU.