CBDT vide Notification No. 109/2021 dated 13.09.2021 in G.S.R. 627(E) notified that for the purpose of the second proviso to section 142(1)(i) the prescribed income-tax authority is Income-tax Officer. The Income-tax (29th Amendment) Rules, 2021 has also inserted a new Rule 12F in the Income Tax Rules, 1962 for this purpose.
The second proviso to Section 142(1)(i) states that a notice under this sub-section may also be served by the prescribed income-tax authority.
Prior to the amendment, clause (i) of sub-section (1) of Section 142 empowers only the Assessing Officer to serve notice to an assessee requiring him to file return of income.
Finance Act, 2021 has inserted a second proviso in clause(i) so as to empower the prescribed income-tax authority also to serve notice under clause (i) of sub-section (1) of section 142 for the purposes of that clause i.e for filing return of income.
This amendment takes effect from 1st day of April, 2021
Section 142 of the Act provides for conduct of inquiry before assessment. Clause (i) of sub section (1) of the said section gives the Assessing Officer the authority to issue notice to an assessee, who has not submitted a return of income, asking for submission of return. This is necessary to bring into the fold of taxation non-filers or stop filers who have transactions resulting in income. However, this power was invoked only by the Assessing Officer.
The Central Government is following a conscious policy of making all the processes under the Act, where physical interface with the assessee is required, fully faceless by eliminating person to person interface between the taxpayer and the Department. In line with this policy, and in order to enable centralized issuance of notices etc. in an automated manner, it has amended the provisions of clause (i) of the sub-section (1) of section 142 to empower the prescribed income-tax authority besides the Assessing Officer to issue the notice under the said clause.
In this context, the CBDT has now notified the prescribed income-tax authority for the purpose of sending notices to file return of income to non-filers under section 142(1). The prescribed income-tax authority as per the Notification shall be not below the rank of Income-tax Officer.
For this purpose, a new rule 12E is inserted in the Income-tax Rules, 1962 to prescribe that the prescribed income-tax authority under second proviso to clause (i) of sub-section (1) of section 142 shall be an income-tax authority not below the rank of Income-tax Officer who has been authorised by the Central Board of Direct Taxes to act as such authority for the purposes of that clause.
Read the full text of Notification No. 109/2021 dated 13.09.2021 on Prescribing Income-tax Officer as Prescribed Authority u/s 142(1)
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th September, 2021
G.S.R. 627(E).—In exercise of the powers conferred by second proviso to clause (i) sub-section (1) of section 142 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-
1. Short title and commencement. - (1) These rules may be called the Income-tax (29th Amendment) Rules, 2021.
(2) They shall come into force from the date of its publication in the Official Gazette.
2. In the Income-tax Rules, 1962, after rule 12E, the following rule shall be inserted, namely:-
“12F. Prescribed income- tax authority under second proviso to clause (i) of sub-section (1) of section 142. - The prescribed income-tax authority under second proviso to clause (i) of sub-section (1) of section 142 shall be an income-tax authority not below the rank of Income-tax Officer who has been authorised by the Central Board of Direct Taxes to act as such authority for the purposes of that clause.”.
[Notification No. 109/2021/F. No. 370142/27/2021-TPL (Part I)]
SHEFALI SINGH, Under Secy., Tax Policy and Legislation
Note : The principal rules were published vide notification S.O. 969(E), dated the 26th March, 1962 and last amended vide notification GSR 623(E), dated the 10th September, 2021.
Download CBDT Notification No. 109/2021 dated 13.09.2021 on Prescribing Income-tax Officer as Prescribed Authority u/s 142(1) in pdf format
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