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CBDT Notifies Prescribed Income Tax Authority for Section 143(2)

cbdt-notifies-prescribed-income-tax-authority-for-section-143-2

Central Board of Direct Taxes (“CBDT” or Board) vide Notification No. 25/2021 in S.O. 1437(E) dated 31.03.2021 authorises the Assistant Commissioner of Income-tax/Deputy Commissioner of Income-tax (NaFAC), Delhi, to act as the ‘Prescribed Income-tax Authority’ for the purpose of sub-section (2) of section 143.


Section 143(2) provides for the issue of notice for scrutiny assessment by the Assessing Officer in case a case is selected for assessment under the Income-tax Act, 1961 (“Act”).



Section 143(2) was amended by the Finance Act, 2016 to provide for a legal framework for automation of various processes and paperless assessment.


In order to ensure timely service of notice issued under sub-section (2) of section 143, it was amended to provide that notice under the said sub-section may be served on the assessee by the Assessing Officer or the prescribed income-tax authority, either to attend the office of the Assessing Officer or to produce or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return.


The expression ‘the prescribed income-tax authority’ after ‘Assessing Officer’ was inserted by the Finance Act, 2016 in section 143(2).


In this context, the prescribed income-tax authority is prescribed in Rule 12E of the Income Tax Rules, 1962. Rule 12E specifies that the prescribed authority under sub-section (2) of section 143 shall be an income-tax authority not below the rank of an Income-tax Officer who has been authorised by the Board to act as income-tax authority for the purposes of sub-section (2) of section 143.


Now, in terms of Rule 12E, the Board authorises the Assistant Commissioner of Income-tax/Deputy Commissioner of Income-tax (NaFAC) having her / his headquarters at Delhi, to act as the ‘Prescribed Income-tax Authority’ for the purpose of section 143(2) of the Act.


Read the full text of Notification No. 25/2021 dated 31.03.2021 on Prescribed Income Tax Authority


NOTIFICATION

New Delhi, the 31st March, 2021

(Income-tax)


S.O. 1437(E).—In exercise of powers conferred under sub-section (2) of section 143 of Income-tax Act, 1961 (43 of 1961) (the Act) read with Rule 12E of the Income-tax Rules, 1962, the Central Board of Direct Taxes hereby authorises the Assistant Commissioner of Income-tax/Deputy Commissioner of Income-tax (NaFAC) having her / his headquarters at Delhi, to act as the ‘Prescribed Income-tax Authority’ for the purpose of sub-section (2) of section 143 of the Act, in respect of returns furnished under section 139 or in response to a notice issued under sub-section (1) of section 142 of the said Act, or sub-section (1) of section 148 of the Act, for the purpose of issuance of notice under sub-section (2) of section 143 of the said Act.


2. This notification shall come into force from the 1st day of April, 2021. 


[Notification No. 25/2021/F. No. 187/3/2020-ITA-I]

PRAJNA PARAMITA, Director



Download Copy of Notification No. 25/2021 dated 31.03.2021 on Prescribed Income Tax Authority in pdf format

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