The Central Board of Direct Taxes (CBDT), on Wednesday introduced the Faceless Penalty Scheme 2021 which will digitise issuing of penalties on assessees under the faceless taxation regime.
The government for the purpose of the Faceless Penalty Scheme 2021 shall set up a National Faceless Penalty Centre, Regional Faceless Penalty Centres to facilitate the conduct of faceless penalty proceedings and vest it with the jurisdiction to impose penalty in accordance with the provisions of this Scheme.
The penalty units shall be set up by the CBDT to perform the function of drafting penalty orders, which includes identification of points or issues for imposition of penalty under the Income Tax Act, 1961 seeking information or clarification on points or issues so identified, providing opportunity of being heard to the assessee or any other person, analysis of the material furnished by the assessee or any other person, and such other functions as may be required for the purposes of imposing penalty.
The penalty unit and the penalty review unit shall have the various authorities, namely Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Incometax Officer and other income tax authority, ministerial staff, executive or consultant, as may be considered necessary.
It has been provided that for the purposes of the Scheme all communications between the National Faceless Penalty Centre and the assessee or any other person, as the case may be, or his authorised representative, shall be exchanged exclusively by electronic mode;and all internal communications between the National Faceless Penalty Centre, National Faceless Assessment Centre, Regional Faceless Penalty Centres, any incometax authority, the penalty unit or the penalty review unit shall be exchanged exclusively by electronic mode.
For the purposes of this Scheme, an electronic record shall be authenticated by digital signature if the assessee is required under the Rules to furnish his return of income under digital signature, and in any other case by affixing digital signature or under electronic verification code.
Every notice or order or any other electronic communication under this Scheme shall be delivered to the assessee by way of placing an authenticated copy in the registered account or to the registered email address or his authorised representative; or uploading an authenticated copy on the assessee’s or any other person’s Mobile App and followed by a real time alert.
The assessee shall not be required to appear either personally or through authorised representative in connection with any proceedings under this Scheme before the incom tax authority at the National Faceless Penalty Centre or Regional Faceless Penalty Centre or penalty unit or penalty review unit set up under this Scheme.
However, the assessee, his authorised representative, may request for personal hearing so as to make his oral submissions or present his case before the penalty unit under this Scheme.Subscribe Taxscan AdFree to view the Judgment