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Published on 6 April 2025

CBDT Issues New Order on Verification Functions Under Income-tax Act Section 144B

CBDT Order on Verification Functions Under Section 144B of the Income-tax Act

On August 1, 2024, the Central Board of Direct Taxes (CBDT) issued an important order concerning the Verification Unit's enquiry and verification functions under the Income-tax Act, 1961. This order, which takes immediate effect, details specific conditions guiding these functions.

Key Conditions for Verification

As per the order issued under the proviso to sub-section (5) of Section 144B of the Income-tax Act, the Verification Unit may engage in enquiry or verification under the following conditions:

  1. Absence of Digital Footprint: There is no digital trace available for the assessee or any related individuals.

  2. No Response to Notices: Electronic or online verification cannot occur due to a lack of response from the assessee or other concerned parties to issued notices.

  3. Need for Physical Verification: Even with a digital footprint, there may be instances requiring physical verification of assets or individuals.

Implementation of the Order

This directive outlines the necessary circumstances for the Verification Unit to act effectively under Section 144B(3)(iii) of the Income-tax Act. Its provisions ensure a clear framework for when physical verification is warranted.

F. No. 187/7/2024-ITA-I
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
North Block, New Delhi-110001

Order Under Proviso to Sub-section (5) of Section 144B of the Income-tax Act, 1961

In accordance with the above-mentioned provisions, the Central Board of Direct Taxes delineates the following scenarios for enquiry or verification functions by the Verification Unit:

  1. Non-availability of a digital footprint for the assessee or other individuals.
  2. Inability to conduct electronic verification due to non-response from the assessee or other parties.
  3. Requirement for physical verification of assets, premises, or individuals despite the existence of a digital footprint.

Distribution List

The order has been disseminated to the following:

  1. PS to FM/OSD to FM/PS to MoS(R)/OSD to MoS(R)
  2. PS to Revenue Secretary
  3. Chairman, CBDT & All Members, CBDT
  4. All Principal Chief Commissioners of Income-tax/Principal Director General of Income-tax
  5. Chief Controller of Accounts, New Delhi
  6. All Joint Secretaries of Accounts, New Delhi
  7. Web Manager, 0/o Pr. DGIT (Systems) for website upload
  8. Commissioner of Income-tax (Media & TP) and Official Spokesperson, CBDT, New Delhi
  9. Secretary General, IRS Association/ITGOA/All-India Income Tax SC & ST Employees’ Welfare Association/Income Tax Employees Federation (ITEF)
  10. JCIT, Data-Base Cell for uploading on irsofficersonline.org
  11. ADG (Systems)-4 for uploading on the website of Incometaxindia.gov.in
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