Section 142B of Income Tax Act, 1961 - Faceless Inquiry or Valuation Scheme

Section 142B of the Income Tax Act, 1961 provides the legal basis for a scheme for faceless inquiry or valuation. The provision enables the Central Government to establish a technology-based procedure through notification in the Official Gazette for efficient, transparent and accountable tax administration.

Meaning of Section 142B

Under Section 142B, the Central Government may prescribe a scheme for:

• Issuing notice under Section 142(1).
• Making inquiry before assessment under Section 142(2).
• Directing audit of accounts under Section 142(2A).
• Estimating value of any asset, property or investment by a Valuation Officer under Section 142A.

Objectives of Faceless Inquiry or Valuation

• Elimination of physical interface between income-tax authorities or Valuation Officers and taxpayers wherever technologically possible.
• Better utilisation of resources through economies of scale and functional specialisation.
• Team-based issuance of notices, inquiries and valuation proceedings.
• Greater efficiency, transparency and accountability.

Faceless Inquiry or Valuation Scheme, 2022

The Central Board of Direct Taxes notified the Faceless Inquiry or Valuation Scheme, 2022 for implementing the objectives of Section 142B through electronic procedures. References to valuation and inquiry are conducted through the prescribed faceless mechanism.

Summary of Section 142B