Introduction of Artificial Intelligence for Assessment Proceedings: CBDT Notifies Faceless Inquiry Or Valuation Scheme, 2022
[01 April 2022] The Central Board of Direct Taxes (CBDT) has notified the Faceless Inquiry or Valuation Scheme, 2022 in order to introduce the Artificial Intelligence for Assessment Proceedings under section 142 of the Income Tax Act, 1961.
The Faceless Inquiry or Valuation Scheme, 2022, covers the following: issuance of notice under section 142(1) of the Income Tax Act; making inquiry before assessment under section 142(2) of the Income Tax Act; directing the assessee to have his accounts audited under section 142(2) of the Act; and a Valuation Officer estimating the value of any asset, property, or investment under section 142A of the Income Tax Act.
The issuance of a notice, inquiry, or direction to an assessee to have his or her accounts audited shall be done in a faceless manner, via automated allocation, in accordance with and to the extent provided in section 144B of the Income Tax Act with regard to making a faceless assessment of the assessee’s total income or loss.
The notification shall come into effect from 30th March, 2022.