Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Wednesday, March 7, 2018

Intimation u/s 143(1)(a)(vi) & Response for Discrepancy

Sub: Processing of Income Tax Return under section 143(1) of Income Tax Act 1961 which were filed in forms ITR 1to 6 and Applicability of section 143(1)(a)(vi)

Finance Act 2016 has introduced clause (vi) to section 143(1)(a) w.e.f. 01.04.2017 which prescribes that while processing the Income Tax Return , Total Income and Loss shall be computed after addition of income appearing in Form 26AS or Form16 or Form16A not included in computation of total Income in ITR.

Intimations proposing adjustment in identified return under section 143(1)(a)(vi) of the Act would be shortly issued by the CPC ITR , Bangalore for AY 17-18

E-Mail/SMS    Communication of Variation/Reasons for Proposed Adjustment  

(a) Since section 143(1)(a)(vi) is being applied for first time, so before   issuing an intimation for proposed adjustment, taxpayer will be informed about potential reasons for making addition  in his/her total income under this clause by way of email or SMS communication.

(b) The Taxpayer receiving such communication has to submit his response to the variation within 1 month electronically.

Procedure for response to intimation u/s 143(1)(a)(vi) electronically

1)      For furnishing the response electronically, taxpayer is required to login in his account in the e-filing site and choose the option (View-Returns/Forms) .

2)      In a case where communication/intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as 'Response to communication/ intimation  u/s 143(1)(a)(vi) is pending'.

3)      The taxpayer can click on the same &  submit his response. See the diagram below :
ght:normal'>(b) The Taxpayer receiving such communication has to submit his response to the variation within 1 month electronically.

Note: File reconciliation statement  In the format provided by CPC -ITR on e-filing site.

Compiled by
Megha Bansal
CA Finalist
Sandeep Ahuja & Co.

Thursday, February 22, 2018

All discounts in normal trade practices are allowed as deduction in computing taxable turnover - Supreme Court

All trade discounts are allowed as deduction while computing taxable turnover if such discounts are given in normal course of business- Supreme Court.
In Maya Appliances P Ltd Case Supreme Court has clarified that assessee is allowed deduction of all trade discounts whether on targets or quantity for computing the taxable turnover.

The  Maya Appliances P Ltd had allowed discounts on quarterly basis to its dealers on the basis of turnover targets done by them and gave discounts in next quarter in sale invoices for the earlier quarter sales turnover and calculated the turnover after such discounts.

The Commercial Tax Department disallowed the quarterly discount given to its dealers on the plea that the discount was not directly related to the sales invoices raised in relevant quarter. The Company filed an appeal and was allowed in favour of Assessee Company but fighting with revenue at all stages went to Supreme Court.

The Supreme Court held that all trade discounts given following normal trade practices are allowed as deduction  while computing taxable turnover. So, all trade discounts were permissible deductions in case of Maya Appliances P Ltd and the appeal allowed in favor of Assessee Company.

Friday, February 16, 2018

TDS FROM SALARIES U/S 192 FOR FIN. YEAR 2017-18 FOR FEB and MARCarch, 2018 – CBDT CIRCULAR NO 29 /2017

Brief Summary of the aforesaid Circular issued by CBDT on the procedure and calculation method to be adopted for deduction of Tax at source from salaries of the employees and monetary and non monetary perquisites to employees and advance and arrears of salaries including salaries from earlier employer in case of two employers in a financial year. The employer must be careful while deducting the TDS in last quarter (Q4) as there might be lower deduction of TDS if the provisions are ignored.

So hereby we are giving :
- Method of Calculation of salaries and taxes if paid by employer.
- Taxes on Perquisites
- Taxes in case of more than one employer
- Relief in case of arrears of salaries received during the year.
- Computation of income under the head “Income from house property”
- Salaries in Foreign Currencies
- Furnishing of Certificate for Tax Deducted (Section 203)
- Other essential points regarding the filing of the Statement.
- TDS on Income from Pension.
- TDS in case of Non Resident.
-TDS On Payment Of Accumulated Balance from Recognized Provident Fund And Approved Superannuation Fund.
- Examples of Calculation of Income-Tax for deduction from Salary.

1. Method of Calculation of salaries and taxes if paid by employer:

Every person who is responsible for paying salaries shall deduct income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2017-18 and  income-tax is required to be calculated on the basis of the rates specified, subject to the provisions related to requirement to furnish PAN as per sec 206AA of the Act. & No tax will be required to be deducted at source if salary income including the value of perquisites, for the financial year exceeds the taxable limit i.e. Rs. 2.50 lacs  , or Rs. 3 Lacs  or Rs. 5 lacs as the case may be.

Lower Deduction

If the jurisdictional TDS officer of the Taxpayer issues a certificate of "No Deduction or Lower    Deduction of Tax" under section 197 of the Act, in response to the application filed before him in Form No 13 by the Taxpayer; then the DDO should take into account such certificate and deduct tax on the salary payable at the rates mentioned therein.(see Rule 28AA). The Unique Identification Number of the certificate is required to be reported in Quarterly Statement of TDS (Form 24Q).
Rule 30 prescribes time and mode of payment of tax deducted at source to the account of Central Government.
The provisions of Section 192(3) allow the deductor to make adjustments for any excess or shortfall in the deduction of tax already made during the financial year, in subsequent deductions for that employee within that financial year itself.

2. Taxes on Perquisites:

An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee in which tax is to be determined at the average of income tax computed on the basis of rate in force for the financial year, on the income chargeable under the head "salaries", including the value of perquisites for which tax has been paid by the employer himself.

3. Taxes in case of more than one employer:

 Where an individual is working under more than one employer or has shifted from one employer to another ,the present/chosen employer will be required to deduct tax at source on the aggregate amount of salary(including salary received from the former employer). The employee has to furnish to the present/chosen employer details of the income under the head "Salaries" due or received from the former/other employer, in writing and duly verified by him and by the former/other employer.

4. Relief in case of arrears of salaries received during the year.
Under section 192(2A) where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body is entitled to the relief under Section 89(1) he may furnish to the person responsible for making the payment referred to in Para 1, such particulars in Form No. 10E duly verified by him, and thereupon the person responsible, as aforesaid, shall compute the relief on the basis of such particulars and take the same into account in making the deduction under Para1 above.
With effect from 1/04/2010 (AY 2010-11), no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in section 10(10C)(i) (read with Rule 2BA), a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under section 10(10C) in respect of such, or any other, assessment year.
5. Computation of income under the head “ Income from house property”:

While taking into account the loss from House Property, the DDO shall ensure that the employee files the declaration referred to above and encloses therewith a computation of such loss from house property. Following details shall be obtained and kept by the employer in respect of loss claimed under the head “ Income from house property” separately for each house property:
a) Gross annual rent/value
b) Municipal Taxes paid, if any
c) Deduction claimed for interest paid, if any
d) Other deductions claimed
e) Address of the property

The DDO shall also ensure furnishing of the evidence or particulars in Form No. 12BB in respect of deduction of interest as specified in Rule 26C read with section 192 (2D).

6. Salaries in Foreign Currencies:

For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at the “Telegraphic transfer buying rate” of such currency as on the date on which tax is required to be deducted at source.
7. Furnishing of Certificate for Tax Deducted (Section 203):
Section 203 requires the DDO to furnish to the employee a certificate in Form 16 detailing the amount of TDS and certain other particulars. Rule 31 prescribes that Form 16 should be furnished to the employee by 15th June (W.E.F. 02.06.2017) after the end of the financial year in which the income was paid and tax deducted. Even the banks deducting tax at the time of payment of pension are required to issue such deducted.

Further as per Circular 04/2013 dated 17-04-2013 all deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, duly authenticating and verifying it, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. 'Part B (Annexure)' of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification along with the Part A of the Form No. 16. If the DDO fails to issue these certificates to the person concerned, as required by section 203, he will be liable to pay, by way of penalty, under section 272A(2)(g), a sum which shall be Rs.100/- for every day during which the failure continues.

8. Other essential points regarding the filing of the Statement:

(a)The employer should quote the gross amount of salary (including any amount exempt under section 10 and the deductions under chapter VI A) in column 321 (Amount paid/credited) of Annexure I of Form 24Q as per NSDL RPU (hereafter Return Preparation Utility).

(b) The employer should quote the amount of salary excluding any amount exempt under section 10 in column 333 (Total amount of salary) of Annexure II of Form 24Q as per NSDL RPU.

(c) TDS on Income (including loss from House Property) under any Head other than the head ‘Salaries’ offered for TDS (shown in column 339) can be shown in column 350 (Reported amount of TDS by previous employer, as per NSDL RPU.

(d) Employer is advised to quote Total Taxable Income (Column 346) in Annexure II without rounding-off and TDS should be deducted and reported accordingly i.e. without rounding-off of TDS also.

 If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.

Quarterly Statement of TDS:

 The person deducting the tax (employer in case of salary income), is required to file duly verified Quarterly Statements of TDS in Form 24Q for the periods [details in Table below] of each financial year, to the TIN Facilitation Centres authorized by DGIT (System’s) which is currently managed by M/s National Securities Depository Ltd (NSDL) or at after registering as Deductor. Particulars of e-TDS Intermediary at any of the TIN Facilitation Centres are available at and portals. The requirement of filing an annual return of TDS has been done away with W.E.F. 1.4.2006. The quarterly statement for the last quarter filed in Form 24Q (as amended by Notification No. S.O.704(E) dated 12.5.2006) shall be treated as the annual return of TDS.

The statements furnished in paper form or electronically under digital signature or along with verification of the statement in Form 27A of verified through an electronic process in accordance with the procedures, formats and standards specified by the Director General of Incometax (Systems).
All Returns in Form 24Q are required to be furnished electronically except in case where the number of deductee records is less than 20 and deductor is not an office of Government, or a company or a person who is required to get his accounts audited under section 44AB of the Act. [Notification No. 11 dated 19.02.2013].

Rectification of mistake in filing TDS Statement:

DDO can also file a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered earlier.

9. TDS on Income from Pension:

In the case of pensioners who receive their pension (not being family pension paid to a spouse) from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to salary-income. The deductions from the amount of pension under section 80C on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, may be allowed. Necessary instructions in this regard were issued by the Reserve Bank of India to the State Bank of India and other nationalized Banks vide RBI's Pension Circular(Central Series) No.7/C.D.R./1992 (Ref. CO: DGBA: GA (NBS) No.60/GA.64 (11CVL)-/92) dated the 27th April 1992, and, these instructions should be followed by all the branches of the Banks, which have been entrusted with the task of payment of pensions. Further all branches of the banks are bound u/s 203 to issue certificate of tax deducted in Form 16 to the pensioners also vide CBDT circular no. 761 dated 13.1.98.

10. TDS in case of Non Resident:

A. Where Non-Residents are deputed to work in India and taxes are borne by the employer, if any refund becomes due to the employee after he has already left India and has no bank account in India by the time the assessment orders are passed, the refund can be issued to the employer as the tax has been borne by it [Circular No. 707 dated 11.07.1995].

B. In respect of non-residents, the salary paid for services rendered in India shall be regarded as income earned in India. It has been specifically provided in the Act that any salary payable for rest period or leave period which is both preceded or succeeded by service in India and forms part of the service contract of employment will also be regarded as income earned in India.

11. Tds On Payment Of Accumulated Balance Under Recognised Provident Fund And Contribution From Approved Superannuation Fund:

A. The trustees of a Recognized Provident Fund, or any person authorized by the regulations of the Fund to make payment of accumulated balances due to employees, shall in cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule to the Act applies, at the time when the accumulated balance due to an employee is paid, make there from the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.
The accumulated balance is treated as income chargeable under the head “Salaries”.

B. Where any contribution made by an employer, including interest on such contributions, if any, in an approved Superannuation Fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the Fund to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.
The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any) even if a fund or part of a fund ceases to be an approved Superannuation fund.

C. As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8 of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000/-. In case the employee does not provide his/her PAN or provides an invalid PAN then the deduction will have to be made at maximum marginal rate.

The Rule-8 of Part-A of fourth schedule excludes the following accumulated balance due and becoming payable to the employee from the total income;
(i) If, he has rendered continuous service with his employer for a period of five years or more, or

(ii) If, though he has not rendered such continuous service, the service has been terminated by reason of -
• the employees ill health, or
• by the contraction or discontinuance of the employer’s business or
• other cause beyond the control of employee, or

(iii) if, on cessation of his employment, the employee obtains employment with any other employer, to the extent amount of such accumulated balance is transferred to his individual account in any recognized provident fund maintained by such other employer, or

(iv) if the entire balance standing to the credit of employee is transferred to his account under a pension scheme referred to in section 80 CCD and notified by the central Government.
When the accumulated balance due and becoming payable to an employee includes any amount transferred from his individual account in any other recognized provident fund(s) maintained by his former employer(s), then in computing the period of continuous service the period or periods of continuous services rendered under former employer(s) shall be counted for the purposes of (i) and (ii) above.
Under the above four situations at (i) to (iv), the accumulated balance due and payable to the employee is not liable for TDS under section 192 A.

12. Calculation Of Income-Tax To Be Deducted:

Salary income for the purpose of section 192 shall be computed as follow:-
(a) First compute the gross salary
(b) Allow deductions(DEDUCTIONS U/S 16 OF THE ACT FROM THE INCOME FROM SALARIES) & compute the amount to arrive at Net salary of the employee
(c) Add income from all other heads- ‘House property’, ‘Profits & gains of Business or Profession’, Capital gains and Income from other Sources to arrive at the Gross Total Income.
However it may be remembered that no loss under any such head is allowable by DDO other than loss under the Head “Income from House property” to the extent of Rs. 2.00 lakh.
(d) Allow deductions (DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT)ensuring that the relevant conditions are satisfied. The aggregate of the deductions subject to the threshold limits shall not exceed the amount at (b) above and if it exceeds, it should be restricted to that amount.
This will be the amount of total income of the employee on which income tax would be required to be deducted. This income should be rounded off to the nearest multiple of ten rupees.
Income-tax on such income shall be calculated at the rates prescribed keeping in view the age of the employee and subject to the provisions of sec.206AA. Rebate as per Section 87A up to Rs 2500/- to eligible persons may be given. Surcharge shall be calculated in cases where applicable .

The amount of tax payable so arrived at shall be increased by educational cess as applicable (2% for primary and 1% for secondary education) to arrive at the total tax payable.

The amount of tax as arrived should be deducted every month in equal installments. Any excess or deficit arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions during the same financial year.

                                                     SOME ILLUSTRATIONS

Example 1
          For Assessment Year 2018-19
(A) Calculation of Income tax in the case of an employee (Male or Female) below the age of sixty years and having gross salary income of:

i) Rs.2,50,000/- ,
ii) Rs.5,00,000/- ,
iii) Rs.10,00,000/-
iv) Rs.55,00,000/-. and
v) Rs. 1,10,00,000/-

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Gross Salary Income (including allowances)
Contribution of G.P.F.

Computation of Total Income and tax payable thereon
Gross Salary
Less: Deduction U/s 80C
Taxable Income

(A) Tax thereon




(i) Education Cess @ 2%.
(ii) Secondary and Higher
Education Cess @1%
Total tax payable
* After rebate of Rs 2500 u/s 87A


Compulsory filing of Statement by PAO, Treasury Officer, etc. in case of payment of TDS by Book Entry.

1. Procedure of preparation and furnishing Form 24G at TIN-Facilitation Centres (TIN-FCs):

The Form 24G should be prepared by the PAO/DTO/CDDO (hereinafter referred to as AOs) as per the data structure (File format) prescribed by the DIT (Systems), Delhi which is available on TIN website
After preparation of form 24G, the AO is required to validate the same by using the Form 24G File Validation Utility (FVU) which is freely available on TIN website.
Once file is validated through FVU, ‘.fvu file’ in CD/DVD/Pen Drive along with physical Statement Statistic Report (SSR) signed by the AO, to be furnished at TIN-FCs. On successful acceptance of Form 24G at the TIN-FC, an acknowledgement containing 15 digit Token no. is provided to the AO. The AO can view the status of Form 24G on TIN website.
Book identification Number (BIN) is generated for each ‘DDO record with valid TAN’ reported in Form 24G, which is further disseminated to the AOs on email ID mentioned in Form 24G. AOs need to communicate the BIN details to respective DDOs. BIN is to be quoted by the DDOs in quarterly e-TDS/TCS statements. BIN consists of receipt number of Form 24G. DDO serial number and date of transfer voucher.
The AO is required to furnish Form 24G within ten days from the end of the month in respect of tax deducted by the deductors and reported to him for that month. Only one regular Form 24G for a ‘month-FY’ can be submitted.

2.Correction in Form 24G:

AO can file a correction Form 24G for any modification or cancellation of Form 24G accepted at TIN central system. Preparation and validation of correction Form 24G is in line with regular form 24G. The validated Form 24G correction file (.fvu file) copied on a CD/pen drive is to be submitted along with the provisional receipt of original Form 24G and SSR to TIN-FC. On successful acceptance of correction Form 24G at the TIN-FC, an acknowledgement containing 15 digit Token no. is provided to the AO.

3. Online uploading of correction Form 24G at TIN website:

AO can file a correction Form 24G for any modification or cancellation of Form 24G accepted at TIN Central System. Preparation and validation of correction form 24G is in line with regular form 24G. The validated Form 24G correction file (.fvu file) can be uploaded online through AO account at TIN website. For correction Form 24G accepted at TIN central system, an online acknowledgement containing a 15 digit token number is generated and displayed to the AO. The format of the acknowledgement is identical to the one issued by the TIN-FC. There is no need to submit SSR and provisional receipt of original form 24G in online upload.

4. Relevant PAO/CDDO/DTO who is liable for filing Form 24G?

A relevant PAO/CDDO/DTO is that office to whom the Deductor/DDO (TAN holder) reports remittance of TDS/TCS through book adjustment. Generally, the Central Government DDOs report TDS through book entry to their respective Pay and Accounts Officers (PAOs) and the State Government DDOs report TDS through book entry to their respective District Treasury Officers(DTOs). Such PAOs and DTOs are required to file Form 24G on monthly basis.
There are also cases of Cheque Drawing and Disbursing Officers (CDDOs) who report TDS through book entry directly to State AG. For example, PWD, Forest Department etc. Such CDDOs are also required to file Form 24G on monthly basis.

5. Where should Form 24G be submitted?

Form 24G is to be furnished only in electronic form in a CD/pen drive at TIN-FCs or online through AO Account at web portal. The facility to submit Form No. 24G online is available free of cost. Provisional Receipt Number (PRN) is issued as an acknowledgement of the receipt of Form 24G.

6. Can the same office/officer also act as DDO and AO?

Ordinarily, the PAO office is the one to whom the DDO reports the TDS and therefore, both should be from different offices. However, where the DDO and AO are the same, as in the case of CDDOs, the statistics report of Form 24G should be counter signed by his superior officer.

7. What is AIN and who should apply?

Accounts Office Identification Number (AIN) is a unique seven digit which is allotted by the Directorate of Income Tax (Systems), Delhi, to every AO. Each AO is uniquely identified in the system by this number. AOs are required to apply for AIN with jurisdictional TDS office. The AIN application can be downloaded from TIN site. Every AIN holder is required to file Form 24G.

Compiled by :
Kritika Modi ( CA Finalist at Sandeep Ahuja & co)

Tuesday, February 13, 2018

CBDT gives procedure for E Assessment for Fin. Year 2017-18

The CBDT on 12th of February, 2018 has issued important instructions to the conduct of proceedings in scrutiny cases electronically.

Section 2 (23C) of Income-tax Act, 1961 applicable from 01.06.2016, provides that “hearing” includes communication of data and documents through electronic mode.

CBDT had issued a revised format for Notices under Section 143(2) and in Para 3 of the notice provides that assessment proceedings in cases selected for scrutiny would be conducted electronically in ‘E-Proceeding’ facility through E-filing website of Income-tax Department.

The procedure as per revised guidelines for conduct of proceedings electronically, except for search related assessments; proceedings in other pending scrutiny assessment cases shall be conducted only through the ‘E-Proceeding’ functionality in IT website.

However, where the concerned assessee objects to conduct of the ‘E- Proceeding’ facility, such cases, for the time-being, may be kept on hold.
The stations with limited capacity where bandwidth is in the process of being upgraded, it has been decided that till 31.03.2018 may undertake and complete only 10% scrutiny cases getting barred by limitation on 31.12.2018 and having the potential to effect recovery during the current year.

All the stations, till 31.03.2018, the assessment proceedings may be conducted manually if e-assessment is not possible and at all other stations with exceptions as given by CBDT, the assessments would be conducted electronically only.
Important procedural aspects for ‘E-Proceeding’ assessment are as under:
1. Enquiry before assessment in electronic mode: For enquiries before assessment in terms of section 142(l)(ii) of the Act, notice shall be issued electronically and delivered upon the assessee in his ‘E-Filing’ account.

2. While filing the response electronically in compliance with notice under section 142(l)(ii) of the Act, the concerned assessee shall verify it in the manner prescribed under Rule 14 of Income-tax Rules, 1962.

3. Use of digital signature by Assessing Officer: All notices will be issued to the assessee through the ‘e-Proceeding’ facility under DSC of the officer.

4. Time for compliance: Online submissions may be filed till the office hours on the date stipulated for compliance.

5. Availability of facility for electronic submission of documents:

- In time barring situation the facility for electronic submission of documents through ‘E- Proceeding’ shall be automatically closed seven days before the time barring date.

- In other situations, upon completion of proceedings, before passing the final order, concerned Assessing Officer, on his volition, shall close the e-submission facility after mentioning in electronic order sheet that ‘hearing has been concluded’

- In exceptional circumstances, the concerned Assessing Officer may enable further filing of submissions electronically under intimation to the Range Head in ITBA.

6. In assessment proceedings being carried out through the ‘E-Proceeding’ facility, a particular proceeding may take place manually in following situation(s):

- where manual books of accounts or original documents have to be examined;
- where Assessing Officer invokes provisions of section 131 of the Act or a notice is issued for carrying out third party enquiries/investigations;
- where examination of witness is required to be made by the concerned assessee or the Department;
- where a show-cause notice contemplating any adverse view is issued by the Assessing Officer and assessee requests for personal hearing to explain the matter.

7. Maintenance of ‘Record’ in the context of ‘E-Proceeding’: 

The cases being assessed through ‘E-Proceeding’ the case-records and note sheet of proceedings shall be maintained electronically.