The New Assessment Procedure proposed by Member(L)
6. Tax Fraud Investigation Team
Cases will be selected for Scrutiny by CASS(Systems).
Systems will push the Return to a team(called Audit Team 1) comprising of PCIT, Addl CIT and AC/ITOs to frame a Questionnaire which once approved by PCIT, will be uploaded by them on the System.
Simultaneously Systems will also push the Return to Audit Team 2, which will also draft a Questionnaire independently, and upload it on the System.
Now Systems will push the Return and both the Questionnaires to Audit Team 3, who will prepare the Questionnaire and upload it on Systems.
Systems will now send the Questionnaire to the Assessee, who will receive the Questionnaire from ‘Income Tax Department’, not from any AO, Audit Team, PCIT etc.
The Reply filed by the Assessee will be uploaded on the System, and will be pushed to Audit Team 4.
If Audit Team 4 desires any enquiry or verification to be done, it will specify the same, and will upload it on the System, which will send it to a ‘Verification Team’.
The ‘Verification Team’ will carry out the verification, and upload it’s Report on the System.
The System will send the Report alongwith Return, earlier Questionnaires, Reply by Assessee etc. to Audit Team 5.
If Audit Team 5 wants to raise any further query on the basis of the Report of the Verification Team or otherwise, it will draft the Querries and upload it on the System.
Systems will issue the Querries to the Assessee.
The Reply sent by the Assessee (uploaded on the System) will be sent by Systems to Audit Team 6.
Again Audit Team 6 may raise Querries, upload on System, Reply to go to Audit Team 7, and so on. Any Audit Team may refer any enquiry or verification to Verification Team, which will submit the Verification Report to the next Audit Team, ie. Audit Team X+1.
At each stage, every Audit Team will be able to see the Return, earlier Questionnaires, Replies by Assessee, Reports by Verification Team etc. However, the identity of each Audit Team will be kept secret from each other.
At some stage, some Audit Team (say Audit Team 15) may be satisfied that the Order can be finalised. They will prepare and upload the Draft Order on the System.
Systems will send the Draft Order to the next Audit Team (16 in this example).This Audit Team will redraft the Order prepared by the preceding Audit Team, and will upload this Final Order on System.
Systems will send the Final Order to the Assessee.
In less complicated cases, some earlier Audit Team, say 7 or 8, or even earlier, may draft the Order (with the next Audit Team finalizing it), and in complicated cases, the number of Audit Teams involved may be much more (20 ? 30 ? 40 ? … depending upon the facts of the case).
In between if any Audit Team wants, it can refer any legal issue to ‘Legal Team’. It was not specified whether the opinion of ‘Legal Team’ will be sent to the Audit Team requesting for the opinion or to Audit Team X+1.
After the Assessment Order is passed, the recovery will be done by ‘Recovery Team’.
Thus the Assessment will be done by various Audit Teams, headed by PCITs, which will work seperately from each other, without being aware of the constitution or identity of the preceding Audit Teams. Assessee will also not be aware of identity or constitution of any of the Audit Teams. Audit Teams will be helped by Verification Team, Legal Team.
After Assessment, Recovery Team and Prosecution Team (if required), will do recovery, prosecution work.
For Search & Seizure operations and Surveys, there will be ‘Tax Fraud Investigation Team’.
The TFI Team will conduct Searchs etc. and will also do post Search inquiries. The TFI Team will almost complete the assessment. It will file ‘Memorandum of Charges’ having entire findings, assessment of Income etc., supported by all evidences, before a Panel…this Panel was stated to be a Panel of Commissioners, comprising of several CITs. This Panel will finalize the Assessment Order.
1. The normal Scrutiny cases will be scrutinized & finalized by a succession of Audit Teams (headed by Principal CITs).
2. Search will be done and post -Search investigation by TFI Team, with Assessment of Search cases being finalized by Panel of Commissioners.
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