CA Final · Direct Tax Laws & International Taxation · Assessment Procedure
In a faceless assessment of Kaveri Exports Ltd, the assessment unit needs a valuation of a property and a determination of arm's length price. Under the Income-tax Rules, 2026, how is this technical assistance obtained?
The assessment unit makes a request through the National Faceless Assessment Centre, which assigns it to a technical unit through an automated allocation system. The technical unit's report then comes back via the Centre to the assessment unit. Units do not communicate directly.
- AThe assessment unit directly contacts a technical officer by phone
- BThe assessment unit requests, through the National Faceless Assessment Centre, technical assistance from a technical unit, to which the request is assigned through an automated allocation systemCorrect
- CThe assessee is required to appoint a valuer and appear before the assessment unit
- DThe review unit prepares the valuation on its own
Explanation
Rule 176(2)(d)(iii) lets the assessment unit seek technical assistance, including on arm's length price and valuation of property, through the National Faceless Assessment Centre. Under (2)(f) the Centre assigns the request to a technical unit through an automated allocation system, and under (2)(g) it sends the report back to the assessment unit.
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