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CA Final · Direct Tax Laws & International Taxation · Assessment Procedure

In a faceless assessment of Kaveri Agro Pvt Ltd, the assessment unit needs a valuation of an immovable property and a determination of arm's length price. Under Rule 176 of the Income-tax Rules, 2026, how is this to be handled?

The assessment unit makes a request through the National Faceless Assessment Centre for technical assistance. The Centre assigns it to a technical unit through an automated allocation system. Valuation of property and arm's length price are specifically listed technical matters, whereas a review unit only reviews the determination proposal.

  1. AThe assessment unit may directly summon a valuation officer and the assessee to its own office
  2. BThe assessment unit requests, through the National Faceless Assessment Centre, technical assistance from a technical unit, and the Centre assigns the request through an automated allocation systemCorrect
  3. CThe assessment unit refers the matter to a review unit, which must determine the value and the arm's length price
  4. DThe assessee must be asked to appear before the verification unit for a personal hearing on valuation

Explanation

Rule 176(2)(d)(iii) lets the assessment unit seek technical assistance for matters such as arm's length price and valuation of property. The request goes through the National Faceless Assessment Centre. Under rule 176(2)(f)(ii) the Centre assigns it to a technical unit through an automated allocation system. The review unit's role is different: it reviews the income or loss determination proposal.

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