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CS Professional · Advanced Direct Tax Laws and Practice · Assessment

Under section 273 of the Income-tax Act, 2025, the assessment unit in a faceless assessment is NOT entrusted with which of the following functions?

Examining witnesses and recording statements is not the assessment unit's function; it belongs to the verification unit. The assessment unit makes the written assessment order after hearing the assessee, may initiate penalty proceedings, and determines the sum payable or refund.

  1. AMaking the assessment of total income or loss by an order in writing after giving the assessee an opportunity of being heard
  2. BInitiating penalty proceedings, if any
  3. CDetermining the sum payable by the assessee or the refund due
  4. DExamining witnesses and recording statements as part of verificationCorrect

Explanation

Examination of witnesses, recording of statements, enquiry and cross verification are functions of the verification unit under section 273(3)(c). The assessment unit makes the assessment order after hearing the assessee, may initiate penalty proceedings and determines the sum payable or refund under section 273(4)(b). Hence the last option is not the assessment unit's function.

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