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CS Professional · Advanced Direct Tax Laws and Practice · Assessment

In a faceless assessment under the Income-tax Act, 2025, what safeguard must the assessment unit observe before making the assessment order for the total income or loss?

The assessment unit must give the assessee an opportunity of being heard. Section 273(4)(b)(i) requires a written order made after considering all relevant material gathered and after hearing the assessee. Review by a review unit is not mandatory in every case.

  1. AIt must obtain prior approval of the Board for every order
  2. BIt must give the assessee an opportunity of being heard, after taking into account all relevant material gatheredCorrect
  3. CIt must refer every case to a review unit before the order is made
  4. DIt must conduct a physical hearing at the assessee's premises

Explanation

Section 273(4)(b)(i) requires the assessment unit to make the assessment by a written order after taking into account all relevant material it has gathered and after giving the assessee an opportunity of being heard. Review units act only where the National Faceless Assessment Centre considers it necessary, so referral is not mandatory in every case. Proceedings are electronic, so no physical hearing is required.

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