Evolution of Faceless Proceedings
Faceless proceedings have evolved as part of the Department’s e-Governance efforts:
- Email-based Assessment (2015): Introduced on a pilot basis in select cities, using email as a medium for assessment.
- E-Proceedings: Enabled online communication between taxpayers and the Department through the e-filing portal.
- E-Assessment Scheme, 2019: Notified under Section 143(3A)-(3C) pursuant to the Finance Act, 2018.
- Expansion via Finance Act, 2020: Brought best judgment assessments (Section 144), penalty proceedings (Section 274), and appeals before CIT(A) (Section 250) within the faceless framework. Further, the CBDT notifies the Faceless Appeal Scheme, 2021 and Faceless Penalty Scheme, 2021.
- Transparent Taxation Platform:On August 13, 2020, the Prime Minister launched the “Transparent Taxation – Honoring the Honest” platform, encompassing Faceless Assessments, Faceless Appeals, and the Taxpayers’ Charter. The E-assessment Scheme, 2019, was renamed as the Faceless Assessment Scheme, 2019.
- Scope of Faceless Proceedings extended: The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 incorporated faceless assessments intoSection 144B, broadening the scope to include rectification, income escaping assessment, valuation, collection and recovery, and revision of orders.
- Scope of Faceless Proceedings further extended: Faceless appeals were extended to Joint Commissioner (Appeals) and ITAT. Additionally, the Dispute Resolution Committee, the Board for Advance Rulings (replacing the Authority for Advance Rulings), and Interim Boards (replacing the Settlement Commission) were all brought under the faceless regime.
Provisions for faceless assessments, appeals and proceedings
The following provisions are contained in the Income-tax Act for the faceless proceedings:
|
Section |
Description |
|
Section 92CA |
Determination of Arm’s Length Price by the Transfer Pricing Officer |
|
Section 130 |
Exercise of all or any of the powers and performance of all or any of the functions conferred on or assigned to income-tax authorities under Section 120, or Vesting the jurisdiction with the Assessing Officer under Section 124 |
|
Section 130 |
Exercise of power to transfer cases under Section 127, or Exercise of jurisdiction in case of change of incumbency under Section 129 |
|
Section 135A |
Calling or Collecting information under Section 133 or Section 133B or Section 133C, Exercising power to inspect register of companies under Section 134, or Exercising power of Assessing Officer under Section 135 |
|
Section 142B |
Issue of notice under Section 142(1), 142(2), or 142(2A) or Estimating the value of any asset, property or investment by a Valuation Officer under Section 142A |
|
Section 144B |
Assessment under Section 143(3) and Section 147 or Best Judgment Assessment under Section 144 |
|
Section 144C |
Faceless functioning of the DRP |
|
Section 151A |
Assessment, reassessment or recomputation under Section 147 or Issue of notice under Section 148, Conducting of enquiries, issuance of show-cause notice or passing of order under Section 148A, or Sanction under Section 151 for issue of notice under Section 148 |
|
Section 157A |
Rectification of mistake apparent from record under Section 154, Other amendments under Section 155, Issuance of notice of demand under Section 156, or Intimation of loss under Section 157 |
|
Section 231 |
Issue of certificate under Section 197 for deduction of tax at lower rates or for no deduction of tax, Treating an assessee in-default under Section 201(1) or Section 206C(6A), Issue of certificate for collection of tax at lower rate under section 206C(9), Passing an order under Section 210 requiring an assessee to pay advance tax, Reduction or waiver of interest paid or payable under Section 220(2A), Extending the time limit for payment or allowing payment by instalment under section 220(3), Treating the assessee not being in default under section 220(6) or section 220(7), Levy of penalty under section 221 for default in payment of tax, Drawing of certificate by the Tax Recovery Officer under Section 222, Jurisdiction of Tax Recovery Officer under Section 223, Stay of proceedings in pursuance of certificate and amendment or cancellation thereof by the Tax Recovery Officer under Section 225, Other modes of recovery under Section 226, or Issuance of tax clearance certificate under section 230. |
|
Section 245D |
Faceless functioning of Interim Board |
|
Section 245MA |
Faceless functioning of Dispute Resolution Committee |
|
Section 245R |
Faceless functioning of Board for Advance Rulings |
|
Section 245W |
Faceless appeal to High Court by AO against an Order or Ruling of Board for Advance Rulings |
|
Section 246 |
Disposal of appeal by JCIT(A) |
|
Section 250 |
Disposal of appeal by CIT(A) |
|
Section 253 |
Appeal to ITAT |
|
Section 255 |
Disposal of appeal by ITAT |
|
Section 264A |
Revision of orders prejudicial to the interest of revenue under Section 263 or other orders under Section 264 |
|
Section 264B |
Giving effect to the order passed by CIT (A) under Section 250, ITAT under Section 254, High Court under Section 260, Supreme Court under Section 262, or revision order passed under Section 263 or Section 264 |
|
Section 274 |
Imposition of penalty |
|
Section 279 |
Granting sanction for initiation of prosecution or Compounding of offence |
|
Section 293D |
Granting approval or registration by an Income-tax authority under any provision of the Income-tax Act |