CBDT Improves Transparency In Tax Administration By Introducing Mandatory Electronic Proceeding For Scrutiny Assessments

The Central Board of Direct Taxes (CBDT) has taken a huge leap towards transparency in its tax administration by announcing (through a recently issued Circular ¹) that the communication between the taxpayer and tax authorities in relation to Scrutiny Assessments (Revenue Audits) shall be carried out electronically. This will equally apply to Limited Scrutinies, Complete Scrutinies and Manual Scrutinies.

The Circular indicates that taxpayers will receive notices and communication from the tax authorities through an electronic mode. An even more significant implication is that the response to these notices is also required to be given electronically and no personal appearance before the tax authorities shall be required. The online information submission portal has already been activated by the CBDT.