CENTRALIZED VERIFICATION SCHEME, 2019

[Mr. M. GOVINDARAJAN]

Power to call for information

Section 133C (1) of the Income Tax Act, 1961(‘Act’ for short)  provides that the prescribed income-tax authority, may for the purposes of verification of information in its possession relating to any person, issue a notice to such person requiring him, on or before a date to be specified therein, to furnish information or documents verified in the manner specified therein, which may be useful for, or relevant to, any inquiry or proceeding (‘proceeding’ means any proceeding under this Act in respect of any year which may be pending on the date on which the powers under this section are exercised or which may have been completed on  or before such date and includes also all proceedings under this  Act which may be commenced after such date in respect of any  year) under this Act.

Section 133C(2) of the Act provides that where any information or document has been received in response to a notice issued the prescribed income-tax authority may process such information or document and make available the outcome of such processing to the Assessing Officer.

Power to make a scheme

Section 133 C (3) of the Act provides that the Board may make a scheme for centralized issuance of notice and for processing of information or documents and making available the outcome of the processing to the Assessing Officer. 

Scheme

Vide Notification No. S.O.771(E), dated 22.02.2018 made the ‘Centralized Communication Scheme, 2018’ which came into effect from 22.02.2018.  Now, vide Notification No.05/2019, dated 30.01.2019 made, in supersession of the scheme made vide notification No. S.O.771(E), dated 22.02.2018, a scheme called as ‘the Centralized Verification Scheme, 2019’ which came into effect from 30.01.2019.

Applicability of the scheme

This scheme shall be applicable to any information or documents-

• in possession of the Centre; or
• made available to the Centre, by –

• the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems);
• the Director General of Income-tax (Risk Assessment);
• the Director of Income-tax (Intelligence and Criminal Investigation);
•  the Commissioner of Income-tax in charge of the Centralized Processing Centre for processing of returns;
• the Commissioner of Income-tax in charge of the Centralized Processing Cell for processing of statements of tax deducted at source; or
• any other authority, body or person,

in accordance with the orders issued by the Board under section 119 of the Act.   

Issue and service of notice

•  The Centre may issue a notice to any person requiring him to furnish information or documents for the purposes of verification of the information or documents.
• The notice shall be issued under digital signature of the Designated Authority.
• The notice shall be served by delivering a copy by electronic mail or by placing a copy in the registered account on the portal followed by intimation by Short Message Service.
• The information or documents called for, shall be furnished on or before the date specified in the notice.
• The response to the notice issued shall be furnished in a machine readable format, in accordance with the procedures and processes.
• No person shall be required to appear personally or through authorized representative before the Designated Authority at the Centre in connection with any proceedings.

Processing of information and documents

• The Centre shall process the information or documents furnished by the person in response to the notice issued, in accordance with the procedures and processes.
• The Centre shall make available the outcome of the processing to the Assessing Officer, in accordance with the orders issued by the Board under section 119 of the Act.

Procedures and processes

The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify from time to time, procedures and processes in regard to the following matters, for effective functioning of the Centre,-

• format and procedure for issuance of the notice;
• receipt of any information or document from the person in response to the notice;
• mode and formats for issue of acknowledgment of the response furnished by the person;
• provision of web portal facility including login facility, tracking status of verification, display of relevant details, and facility of download;
• accessing, processing and verification of information and response including documents submitted during the verification process;
• format and data structure for making available the outcome of verification to the Assessing Officer;
•  call centre to answer queries and provide support services, including outbound calls and inbound calls seeking information or clarification;
• receipt, scanning, data entry, storage and retrieval of information or documents in a centralized manner;
• grievance redressal mechanism in the Centre.