CA Final · Direct Tax Laws & International Taxation · Assessment Procedure
In a faceless assessment, the assessment unit handling the case of Mehta Pharma Ltd needs a valuation of an unlisted property and a determination of arm's length price. What does Rule 176(2) prescribe?
The assessment unit requests technical assistance through the National Faceless Assessment Centre. The centre assigns the request to a technical unit by automated allocation and forwards the technical unit's report to the assessment unit. Verification units handle enquiries, not technical matters such as valuation or arm's length price.
- AThe assessment unit directly calls a valuation officer and the assessee's representative
- BThe assessment unit makes a request through the NFAC, which assigns it through an automated allocation system to a technical unit, whose report is sent via the NFAC to the assessment unitCorrect
- CThe assessment unit refers it to a verification unit, which reports to the assessee directly
- DThe NFAC itself determines the valuation and passes the final order
Explanation
Rule 176(2)(d)(iii) allows the assessment unit to seek technical assistance, such as arm's length price or valuation of property, through the NFAC. Under (f)(ii) the NFAC assigns it to a technical unit by automated allocation, and under (g) the report is sent to the assessment unit via the NFAC. A verification unit conducts enquiry or verification, which is a different function.
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