The Bombay High Court directed the Central Board of Direct to clarify the government’s stand on the ‘Faceless Appeal Scheme’, after a public interest litigation (PIL) challenged its constitutional validity.
The Chamber of Tax Consultants has challenged the constitutional validity of provisions dealing with the ‘Faceless Appeal Scheme’.
The primary contentions raised by the consultants’ chamber in its Public Interest Litigation (PIL) is that the ‘Faceless Appeal Scheme’ will affect the independence of judicial power of the CIT (Commissioner of Income Tax) Appeal.
The other issue raised by the chamber is that if even at the first appellate stage, an opportunity for a personal hearing is not granted, then the assessee would stand to miss out on two chances or oral hearing in stages.
Anil Singh, Additional Solicitor General informed the court that the total pending cases are 4.74 lakh and out of the total appeals, about 56,104 appeals had been disposed of so far under the new scheme, without any request for a personal hearing.
“So far, in 581 cases, assessees have asked for personal hearing and those cases have been kept aside,” said Singh.
Arvind Datar, appearing for the petitioner, the Chamber of Tax Consultants informed the court that the Supreme Court has clarified that it is not taking up any matter because the government has said that they are going to bring the changes in the laws.
The division bench of Chief Justice Dipankar Datta and Justice MS Karnik has posted the hearing of the case to December 14 and has asked the Central Board of Direct Taxes (CBDT) to clarify if the government’s stand to make changes in the ‘Faceless Appeal Scheme’.
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