National Faceless Assessment Centre releases SOP for handling Writ Petitions against Assessments and Penalties passed

The National Faceless Assessment Centre released the Standard of Procedure (SOP) for handling writ petitions where assessment is made under the Faceless Assessment Scheme 2019 (FAS’ 19)/Section 144B of the Income Tax Act, 1961 or penalty is passed under Faceless Penalty Scheme (FPS), 2021, where NaFAC or Central Board of Direct Taxes (CBDT) is one of the respondents.

“It is being observed that NaFAC is one of the respondents in most of the writs because orders under FAS 2019 or u/s 144B of the Act are issued from NaFAC. As such NaFAC has no primary role in defending the writ except in cases where the scheme itself is challenged or a wider policy issue is involved. Hence, for this purpose, in each such case, the NaFAC shall authorize the Pr. CIT (Jurisdictional) as authority to defend the case before the Hon’ble High Courts,” the NaFAC said while addressing all the Principal Chief Commissioner said.

On receipt of a writ petition directly from the petitioner or the Standing Counsel or the High Court or the CIT (Judicial) concerned, a copy shall be forwarded to the PCIT (Jurisdictional), in case, proceedings are completed and to PCIT (ReFAC) (AU) where proceedings are pending [with a copy to PCIT (Jurisdictional)], within 5 days of receipt for necessary action as per Para A. In view of CBDTs communication dated August 14, 2020, the NaFAC shall authorize the PCIT (Jurisdictional) as the authority to defend the case before the High Courts.

“On receipt of the request from the PCIT (Jurisdictional) for the unmasking of AU, the NaFAC shall forward the request to the Directorate of Systems for the unmasking of the AU concerned and provide such details of the PCIT (RFAC) (AU) concerned to the PCIT (Jurisdictional),” NaFAC said.

On receipt of the request from the PCIT (Jurisdictional) for specific inputs on policy matters or provisions related to FAS 2019/section 1448 of the Act or FPS, 2021 being challenged, the NaFAC shall examine whether the request is accompanied by terms of reference for seeking comments of NaFAC as per prescribed template. Analyze the writ petition and respond on broad policy issues. If required, NaFAC may refer the petition to the CBDT and Directorate of Legal and Research and obtain comments from the relevant division before sending a response to the PCIT (Jurisdictional).

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