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

In a faceless assessment of Kaveri Exports Pvt Ltd, the assessment unit wants a valuation of an immovable property and a determination of arm's length price on an international transaction. Under Rule 176 of the Income-tax Rules, 2026, what is the correct course?

The assessment unit makes a request through the NFAC, which then assigns it by automated allocation to a technical unit. Technical matters such as arm's length price and property valuation go to the technical unit, while verification units handle enquiries, and communication runs through the NFAC.

  1. AThe assessment unit directly asks an outside valuer, with no involvement of the NFAC
  2. BThe assessment unit makes a request through the NFAC, which assigns it through an automated allocation system to a technical unitCorrect
  3. CThe assessment unit sends the matter to a verification unit, which must give technical assistance
  4. DThe assessment unit asks the assessee to appear in person before a technical officer

Explanation

Under Rule 176(2)(d)(iii) the assessment unit may seek technical assistance, for arm's length price, valuation of property and similar matters, through the NFAC. Under Rule 176(2)(f)(ii) the NFAC assigns such a request to a technical unit by automated allocation. A verification unit handles enquiry or verification, not technical assistance, and personal appearance is barred by Rule 176(3)(f).

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