CBDT Launched Faceless Income Tax Appeals

The Central Board of Direct Taxation (CBDT) has launched the faceless income tax appeals today on September 25, 2020. The Announcement was made by the Prime Minister Narendra Modi on the birth anniversary of Pandit Deen Dayal Upadhayay. He made his statement during the launch of Faceless Assessment and Taxpayers’ Charter under the “Transparent Taxation – Honoring the Honest” platform. Under the new mechanism all appeals will be finalized in a faceless manner. However, it will be barring the cases of major tax evasion, black money act, serious frauds and international tax to follow the same mechanism.

Key Facts

  • All income tax appeals including e-allocation of appeal, e-communication of notice or questionnaire, e-verification or e-enquiry, e-hearing and  e-communication will be done online.
  • Taxpayers can now make submissions from the comfort of their home.
  • Now, there will be no physical communication between people, their counsel and the income tax department.
  • The Faceless Appeal system includes allocation of cases through Data Analytics and AI.
  • The appeals would remain in the jurisdiction of central issuance of notices with Document Identification Number (DIN).
  • Under this jurisdiction, the draft appellate will be prepared in one city while the reviewing of the order will be done in another city.

Significance

The faceless appeal will provide convenience to the taxpayer by ensuring that there is just the appeal orders on the platforms. It will minimizing the litigations for the ease of taxpayers. the new mechanism also seeks to ensure greater transparency and accountability.