PROVIDING LEGAL FRAMEWORK FOR AUTOMATION OF VARIOUS PROCESSES AND PAPERLESS ASSESSMENT

In order to enhance efficiency and reduce the compliance burden, the following proposals are made:-

It is proposed to amend sub-section (1) of Section 282A so as to provide that no mandatory signature of the authority in manuscript shall be required to issue notice or other document and the same shall be issued either in paper form duly signed or communicated in electronic form in accordance with procedures as may be prescribed

It is further proposed to amend Section 143 (2) to provide that notice shall be issued by the prescribed authority, either to attend the office of the authority or produce any evidences before the authority on which the assessee may rely in support of the return. However, no notice shall be issued after the expiry of 6 months from the end of financial year in which return is furnished

It is proposed to amend Section 2 by inserting new clause 23C to define the word “hearing” to include communication of data and documents through electronic mode

It is proposed to expand the scope of adjustments that can be made under Section 143(1), which are as follows:-

– Disallowance of loss claimed, if return of the previous year for which set off of loss is claimed is furnished beyond the due date specified under sub-section (1) of Section 139;

– Disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return

– Disallowance of deduction claimed under Sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or Section 80-IE, if the return is furnished beyond the due date specified under Section 139(1).

– Addition of income appearing in Form 26AS or Form 16A or Form 16 but not included in computing the total income in the return.

However, the above adjustments shall be made only after intimating assessee and on intimations, response, if any, given by assessee shall be considered while making the adjustments, only if it is received within 30 days of intimation.

These amendments will take effect from the 1st day of June, 2016