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CS Professional · Advanced Direct Tax Laws and Practice · Assessment

In a faceless assessment under section 273 of the Income-tax Act, 2025, an assessment unit sends a reference suggesting that section 268(5) be invoked, and the head of the National Faceless Assessment Centre considers it appropriate. What follows?

The head of the National Faceless Assessment Centre forwards the reference to the jurisdictional Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, who then directs the jurisdictional Assessing Officer to invoke section 268(1). This follows section 273(9)(a) and 273(10); the assessment unit does not issue the direction.

  1. AThe assessment unit itself directs the jurisdictional Assessing Officer to proceed
  2. BThe reference is forwarded to the jurisdictional Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, who directs the jurisdictional Assessing Officer to invoke section 268(1)Correct
  3. CThe assessment is automatically dropped and the assessee is refunded
  4. DThe verification unit completes the assessment without further reference

Explanation

Under section 273(9)(a) the head of the Centre forwards the reference to the jurisdictional senior authority and informs the assessment unit. Under section 273(10) that authority then directs the jurisdictional Assessing Officer to invoke section 268(1). The assessment unit cannot direct this itself.

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