The Central Board of Direct Taxes (CBDT) has issued the procedure for handling of assessment by a Jurisdictional Assessing Officer in respect of assessments or penalties transferred out of Faceless Assessment under section 144B(8) of the Income-tax Act,1961 or Faceless Penalty Scheme, 2021 respectively.
The CBDT has accorded approval for transfer of assessments or penalties to Jurisdictional Assessing Officers (PAN based), as found necessary, on case-to-case basis in terms of Section 144B(8) of the Income-taxAct, 1961 (Act) or clause 5(2) of Faceless Penalty Scheme, 2021.
The Jurisdictional Assessing Officer (JAO) shall complete the assessments/penalties in such cases as per the various broad contours to the extent technically feasible.
To begin with, all processes ill cases transferred under section 144B(8) of the Act or clause 5(2) of Faceless Penalty Scheme, 2021 may be conducted electronically to the extent technically feasible, except in those cases where the assesseedoes not have e- filing account/registered emailto communicate electronically with JAO. For cases without digital footprint, the JAO shall endeavorto get the e-filing account of the assesseeregistered and then conduct the proceedings in an electronic manner.
In addition, the request for personal hearings shall generally be allowed to the assesseewith the approval of Range Head, mainly after the assesseehas filled written submission to the show cause notice. Personal hearing may be allowed to the assesseepreferably through Video Conference. If Video Conference is not technically feasible, personal hearings may be conducted in a designated area in Income Tax Offices. The hearing proceedings may be recorded.
Furthermore, use of Faceless processes such as VU for online verification, TU for Technical inputs etc. may also be considered for non-faceless regimes to the extent technically feasible.
In conclusion, in order to have consistency with the unit concept in faceless regime,the Range Head may compulsorily be involved in the formalization of assessment of such cases transferred to JAO, for which the provisions of Section 144A of the Act may suitably be invoked. In penalties, the approval of Range Head is already embedded in Section 274(2) of the Act, over a specific monetary ceiling of ‘penalty imposable’. Same may be adhered to.
It is also clarified that in respect of such cases transferred, the JAO shall take into account the proceedings conducted so far under the faceless regime and proceed further as per the provisions of the Act and broad contours of modalities.
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