Faceless Inquiry or Valuation
Introduction
The Faceless Inquiry or Valuation Scheme, 2022, was introduced to eliminate direct interaction between taxpayers and Income-tax authorities. It applies to notices under Section 142, special audits, inventory valuation, and valuation by a Valuation Officer under Section 142A.
Scope of the Scheme
Under Section 142B, the scheme covers:
- Issuance of notices underSection 142(1)& 142(2) for return filing and inquiries.
- Directing special audits or inventory valuation underSection 142(2A).
- Valuation of assets, properties, or investments by a Valuation Officer underSection 142A.
Objectives
The scheme aims to enhance:
- Transparency and accountability by eliminating personal interactions.
- Efficient resource utilization using economies of scale.
- Team-based processing and dynamic jurisdiction through automation.
Faceless Inquiry or Valuation Scheme, 2022
- The Central Government notified the scheme via Notification No. 19/2022, dated 30-03-2022.
- As per scheme, the following shall be issued or made in a faceless manner through an automated allocation system as per the procedure prescribed insection 144B:
- Notice underSection 142(1)to file return of Income,
- Notice underSection 142(2)for making inquiry before assessment,
- Notice underSection 142(2A)for directing the assessee to get his account audited or inventory valued, or
- Reference for estimating the value of any asset, property or investment by a Valuation Officer underSection 142A,
- All proceedings are conducted digitally using automated case allocation.
- Artificial intelligence and machine learning assist in case selection and processing.
Government Directions
The Central Government may modify the applicability of provisions through notifications, which must be tabled before Parliament.