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

In a faceless assessment of Narmada Pharma Ltd, the assessment unit needs a valuation of a property and an arm's length price determination. Under Rule 176 of the Income-tax Rules, 2026, what is the correct procedure?

The assessment unit makes the request through the National Faceless Assessment Centre. The Centre assigns it to a technical unit by automated allocation and then forwards the technical unit's report to the assessment unit. Units do not communicate directly, and no personal appearance is needed.

  1. AThe assessment unit directly writes to a technical unit and receives the report without any involvement of the National Faceless Assessment Centre
  2. BThe assessment unit makes a request through the National Faceless Assessment Centre, which assigns it through an automated allocation system to a technical unit and then sends the report back to the assessment unitCorrect
  3. CThe assessment unit refers the matter to a review unit, which prepares the valuation report
  4. DThe assessment unit asks the assessee to appear before the technical unit in person

Explanation

Rule 176(2)(d)(iii) lets the assessment unit seek technical assistance (arm's length price, valuation of property etc.) through the National Faceless Assessment Centre. Under (f) the Centre assigns it to a technical unit by automated allocation, and under (g) it forwards the report to the assessment unit. Option A bypasses the Centre.

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