Dated 1st Sep,2023
FAQs on SOP for AU/VU/TU/RU
S No
Issue in the query
Response
1.
What is the applicability of SOPs for
SOP for AU/VU/TU/RU dated 3rd August 2022 overrides
AU/VU/TU/RU issued by NeAC/
all other SOP for AU/VU/TU/RU issued earlier by
NaFAC prior to 3rd August 2022?
NeAC/NaFAC.
2.
What is the scope of Physical
Para B.3 of SOP for VU refers to physical verification,
Verification by VU under Para B.3 of
regardless of the presence of digital footprint. This means
SOP for VU?
physical verification may be done in respect of ‘any other
person’ or the ‘assessee’.
3.
How to generate notice on Insight to
Where VU is required to issue notice through Insight, to
‘any other person’ where no digital
‘any other person’ where no digital foot print is available,
foot print is available, as email id field
following email ID may be used to generate the notice:
is mandatory?
ndfp.nafac@incometax.gov.in
4.
Whether VU can change mode of
Where VU issues notice u/s 133(6) through Insight, the
compliance (email/ speed post) of
mode of response must be changed. There is space for
notice u/s 133(6) in Insight Portal?
adding free text in the notice. Mode of response by email
or speed post should be mentioned alongwith VU’s email
ID and address for communication.
5.
Whether AU can mark references to
No. As per the SOP for AU dated 3rd August 2022 Para D.3
VU for service of notices u/s 142(1) or
deals with action to be taken where there is no response
SCN in non-responsive cases of
to the initial notice u/s 142(1) within the compliance
assessee?
date. Further Para G.3 refers to the Centralized
communication to improve compliance of 142(1).
6.
No. As per the SOP for AU dated 3rd August 2022, Para J
VU for service of notices issued to ‘any
refers to only 3 instances where reference can be made
other person’, which have not been
to VU. This does not include service of notice.
responded to?
However, where the PCIT of the AU approves, AU may
make a reference for verification to VU, under Para J.1.2.
AU may seek any such verification mentioned in Para C of
SOP for VU. VU.
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7.
What action should VU take in the
Requirement of approval of PCIT of the AU in instances
cases where approval of PCIT of the
falling under Para J.1.2 and J.1.3 is mandatory. Any such
AU is missing in the reference?
reference, not communicating the approval of PCIT of the
AU, may be returned with the remark “PCIT approval
required, but not communicated”.
Mention of approval of the PCIT of the AU (indicating the
date and time of approval obtained through email) in the
reference would suffice.
8.
Whether only one SCN is sufficient for
No. Sec 144B mandates issue of SCN:
assessment to be completed ex-parte
• Under Section 144B(1)(ix) - Issue of SCN u/s 144
u/s 144?
• Under Section 144B(1)(xii)(b) – Issue of SCN where
any variation prejudicial to assessee is proposed.
9.
What should be done if due to any
To meet the ends of principles of natural justice, if due to
technical reasons the time provided to
any technical reasons the time provided to the assessee
the assessee to respond falls short of
to respond falls short of the time mentioned in the SOP,
the time mentioned in the SOP?
the AU may give additional time to comply, subject to the
overall time barring date.
10.
Issue relating to withholding of refund
Para S.1 of the SOP for AU deals with the role of AU with
u/s 241A
reference to Sec 241A. It has been stated in Para S.1.4 that
the power to withhold refund till the date of assessment
vests with JAO. Further, Para S.1.2 requires that
communication on the matter with respect to the relevant
AY be made by the AU with the approval of the
PCIT of the AU.
11.
How to handle cases where provisions
Cases where provisions of GAAR are proposed to be
of GAAR are to be invoked by AU?
invoked may be referred to NaFAC for transfer out to JAO
u/s 144B(8).
12.
What needs to be done in cases of NRI,
Such cases are to be transferred out of faceless u/s
Search & Seizure, Survey or partly set
144B(2).
aside?
Pending deployment of functionality on ITBA, following
process is to be followed:
• The list of cases must be duly verified by PCIT of
the AU, and
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• The proposal is to be sent from the designation
based email of PCIT of the AU, only to the
following email ID:
delhi.dcit2.2.neac@incometax.gov.in.
13.
Which
case
will
fall
within
the
This category refers to cases where assessee expired
exceptional category of legal heirs?
after the issue of notice u/s 143(2), and assessment is to
be completed by bringing the legal heir on record.
14.
This category refers to cases where the assessee
exceptional category of Strike off
company has been Struck-off by MCA.
companies?
15.
This category refers to cases where:
exceptional category of de-duplication
• The assessee replies that it is using PAN other
of PAN?
than the one on which notice was issued, or
• The AU ascertains that the assessee is using PAN
other than on which notice was issued.
16.
Which case will fall under exceptional
This category refers to cases where the order for
category of
Business Restructuring/
business restructuring affects merger/splitting of
Amalgamation/ Merger/ Demerger
accounts of the assessee for the financial year relevant to
the Assessment Year under scrutiny before AU.
17.
Action to be taken in cases falling in
Such cases are to be transferred out to JAO u/s 144B(8)
exceptional categories -Legal heir/
by NaFAC with the approval of Board.
Business
Restructuring/
Strike
Off/
Following process is to be followed:
De-duplication of PAN
• The data of such cases is to be consolidated after
due verification, at the level of CCIT, in the format
shared by NaFAC.
• Upon receipt of email from NaFAC, the
consolidated list of cases in the format shared by
NaFAC, is to be sent from the designation based
email of CCIT, only to the following email ID
delhi.dcit2.1.neac@incometax.gov.in.
18.
How
are
cases
with
no digital
Such cases are handled from backend by NaFAC. AU is not
footprint handled?
required to share list of such cases.
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19.
How to handle a case where, due to
Details of such case, along with specific comments of PCIT
technical reasons, faceless assessment
of the AU and concerned CCIT, are to be shared on:
is not possible?
delhi.cit.neac@incometax.gov.in
and copy to
delhi.addlcit1.neac@incometax.gov.in,
delhi.dcit1.2.neac@incometax.gov.in,
delhi.dcit2.1.neac@incometax.gov.in
20.
How to handle cases where emails
Where emails bounce and assessee is non-responsive, AU
have bounced?
is to take action as per Para D.3 of SOP of AU.
In addition, in non-responsive case, a periodic
centralized communication will be sent by Insight on
directions of NaFAC as per Para G.3 of SOP of AU.
Note: These cases do not fall in category of non-digital
footprint cases because service is valid if notice is
delivered on the registered account of assessee on the e-
filing portal followed by a real time alert.
21.
Are AU required to report non-
No. NaFAC will identify non-responsive cases and run
responsive cases for centralized
periodic cycles of such communication through Insight.
communication under Para G.3 of SOP
All attributes of communication will be made available on
of AU?
the database accessible to AU on Insight.
22.
Is AU required to make reference to
No. As per Para J.1 of SOP of AU, reference may be made
VU, under Para J.1.1 & J.1.2 of SOP of
only in cases where it is considered necessary.
AU, in all cases where third party that
does not have digital footprint or is
non-responsive?
23.
How is cross examination to be
Cross examination may be conducted through VC.
conducted in case of witness having
Summons may be issued to the witness with a copy to the
digital footprint?
assessee. In the event of no response by the witness, AU
may take action J.1.2 of SOP of AU.
24.
Whether it is mandatory to refer legal
No. Para L.3.2 of SOP of AU states that legal issues
issues to TU?
covered by Jurisdictional HC or Supreme Court are not to
be referred to TU. Legal references may be made to TU as
per Para L.3 of SOP of AU.
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25.
What should be done if the
Another SCN may be issued, keeping in view the limitation date for
assessee fails to request for VC
completing the assessment. The SCN must specifically mention that
through the button on e-filing?
it is being issued to enable the assessee to seek VC through the
button on e-filing
portal.
26.
Can AU make changes to
No changes can be made to ILDP once it has been
ILDP once
generated.
generated?
27.
Can reference be made to
Yes. If required and subject to the limitation date for
TU/VU where RU has
completing the assessment, the AU may make a reference
proposed modification?
to TU/VU.
28.
The limitation date on ITBA
The limitation date will change automatically only after TU
has not changed even though
forwards the reference to TPO through TP reference
the case was
tab on ITBA.
referred to TU for TP
reference.
29.
Limitation date for passing the Final Order in case of eligible
does not automatically change
assessee u/s 144C will change on ITBA only when the AU captures
even when the draft order is
the response or no-response of the assessee.
passed in case of eligible
Where the assessee files objections before DRP, date of receipt of
assessee.
DRP order is to be captured to get the final
limitation date.
30.
Does AU need to attach any
No. VU will generate appropriate notice, as required, for
notice
conducting verification.
while making reference to VU?
31.
Can the pre-set notice on
VU can edit the mode of reply mentioned in the pre-set notice, so
Insight be edited by VU to
that the assessee/third party can reply on designation based email
change
mode
of
of the VU or at the specified
compliance / reply?
office address, instead of replying on the e-filing portal.
32.
When all physical verification
Since the functionality for grant of approval of PCIT of the AU is
references are now approved
functional and operational in Insight portal:
online by PCIT on Insight,
• AU may not obtain the approval of PCIT of the AU separately
whether there is still a
on e-mail;
requirement of
mentioning
• AU may no longer communicate the date and time when
the approval details (date and
approval of PCIT of the AU was taken.
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time) of PCIT of the AU in the
The requirement in Annexure AU-2 of the SOP for AU/VU/TU/ RU
references to VU by AU?
dated 03.08.2022 and PU-3 & PU-4 of the SOP for PU/PRU/VU/TU
dated 06.09.2022, to communicate date and time of e-mail by which
approval of PCIT of the AU was taken by AU/ PU (as the case
maybe), will no longer be operational.
33.
Whether VU may return the
references
to
AU,
in the
functional and operational in Insight portal, VU may not return the
absence of communication of
references to AU on this ground.
the date and time of approval
FAQ No. 7 stands modified to this extent.
by PCIT of the AU?
34.
What process is to be followed
AU must follow the following process:
by AU to obtain further
a.
In the first instance, AU must examine the material available
documents/information from
in the work item and also the electronic records available in
JAO?
the System and then identify specific information required
from JAO.
b.
Thereafter, communication for the missing essential
information may be issued only to the JAO and the Range
head.
In the event of no response from JAO/Range head, the matter may be
escalated to the PCIT of JAO
35.
How should
response, other
Apart from uploading the response received from TPO through
than the final report, received
DIN/PAN-AY document uploading functionality, Inter Unit
from TPO be communicated
Communication channel may also be used by the TU.
by TU to AU?
36.
What are the precautions to be
•
To initiate the Video Conference, the AU must log in with the
taken
while
conducting
‘Host’ link received in Case History Notings or via SMS, and not
personal
hearing
through
with the ‘Attendee’ link available in the notice sent to the
Video Conferencing?
taxpayer. The host link will have the word 'host' within the
link.
The AU must ensure that all identifiers are masked/hidden
before initiating the Video Conference.
Conclude the VC in ITBA functionality after completion.
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37.
What steps are required to be
The AU must ensure that all additions proposed in the ILDP are duly
by
AU and
RU
reflected in the Computation of Income before submitting the same
for RMS.
regard to the Computation of
Income?
The AU must invariably unfreeze the earlier computation done
during Dry Run and recompute after making appropriate entries in
the computation sheet in accordance with the ILDP.
Computation must be done again even when no variation is
proposed in the ILDP.
RU must, in addition to the ILDP, check the prima facie correctness
of the computation. Issue, if any, must be flagged in the Review
Report.
At the Draft/Final Order stage also, AU must check the correctness of
the computation. Issue, if any, must be taken up with ITBA/CPC.
38.
can
AU/VU
use
Systems has communicated that ‘Information Request’ functionality is
‘Information
Request’
available only to AU in cases which have been selected on the basis of
functionality in Insight to get
information received from a Reporting entity. The AU can use the
information
from
Reporting
functionality only to get additional information in respect of the original
Entity (SFT Filers)?
information received from the Reporting Entity.
The functionality is not available to VU.
39.
How can AU access the case
AU can navigate to ‘Verification’ module at Insight Portal to view the cases
packets in Insight?
assigned to them.
What information is available in
For each assigned case, case details screen is available which contains
the case packets?
details like, PAN, F.Y., case type, verification issues etc.
For each verification issue, ‘View’ hyperlink is available to view third party
information e.g., SFT information
40.
How can AU access 148A
AU can access Section 148A proceedings through “Status Monitor” of ITBA.
proceedings in ITBA?
The AU can see all communications with the assessee related to 148A
proceedings on e-filing BO portal.
41.
How will PU come to know when
PU gets an alert in ITBA when an order is passed in a case by CIT(A).
an order is passed by CIT(A) in a
PU has access to 360-degree view through which form 35 & CIT(A) order,
particular case?
if any, are visible.
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42 What is the rule of allocation of Since all VU have been mapped pin-code wise on Insight, reference by
References to VU by AU?
AU to VU will be made to the specific unit-head of the concerned VU
in all instances.
43. What are the rules of
The unit head of VU shall assign the References to the subordinate
assignment of References by
AC/DC and ITO in accordance with the following parameters:
the Unit Head of VU amongst
i. The unit head of VU shall assign the reference to the
the subordinate DC/AC/ITO?
subordinate AC/DC and ITO in accordance with the following
parameters:
Assignment shall be on the basis of geographical proximity of
the officer to the subject of verification to ensure efficiency
and prompt verification.
It shall be ensured that, as far as possible, all the subordinate
AC/DC and ITO have equitable workload.
c.
References requiring physical verification of the same
address/person shall be assigned to the same officer, as far as
possible, to avoid
• multiple officers getting the verifications done on the
same address/person and,
• multiple persons visiting the same address/person.
ii. Assignment of References amongst subordinate AC/DC and
ITO shall require prior approval of the PCIT VU, which shall be
obtained using the designation-based e-mail, until
functionality for the same is built in the System.
iii. Fortnightly report on Assignment of References shall be
submitted to the PCIT VU, using the designation-based e-mail,
as per the following format:
Report on Assignment of References
By Unit-head ___________________ To PCIT VU __________________
Fortnight I/II in the Month of ___________________ , Year
____________
Officers of
Opening
No. of
Total
the VU
Balance of
References
number of
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assigned
taken out
during the
upon Re-
for Re-
at the end
at the
fortnight
assignment
of the
beginning
AC/DC
ITO VU 1
ITO VU 2
ITO VU 3
ITO VU 4
ITO VU 5
with VU
44.
How to view and address
Adjournment request made through the prescribed button on e-
adjournment request made by
filing portal, is visible to the AU through the “Hearing” button in the
the assessee
during faceless
case work-item. Before submitting the ILDP, AU may ensure that
assessment
request for adjournment has been duly addressed. The detailed
proceedings?
ITBA instruction may be referred in this regard.
45.
Need to mention the details of In non-responsive cases where Centralized Communication has
Centralized
Communication,
been issued through NaFAC, the FAU must specifically include a
including the delivery status of
separate paragraph in the assessment order, stating the following:
• The date on which communication was sent through speed
communication sent by speed-
post to the taxpayer;
post, in a separate para while
• The address on which the communication was sent;
• The detail of Speed Post consignment number;
passing the assessment order.
• Delivery status of the Consignment number as per the
website of the Department of Post.
46. How to deal with the situation,
In such cases, VU to:
where in non-responsive
• send the communication in format PU-3A, by speed post;
penalty cases, VU carries out
• include in the verification report, the reason for not being able to
address verification, but is
physically deliver the said communication.
unable to physically deliver the
communication in format PU-
3A, as per Para D.1.4 of the SOP
for VU?
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47.
Required action by VU where
VU should send an interim report to AU, using Internal
there is delay of more than 15
Communication functionality in Insight, to intimate:
days in sending verification
• the reasons for delay, and
report relating to physical
• the likely date by which final report will be sent.
verification, to AU.