The Apex Court has issued the notice in the transfer petition seeking transfer of cases challenging the Faceless Appeal Scheme, 2020 from High Courts to the Supreme Court.
The petitions before the High Courts are stated to be predicated on a challenge to the Faceless Appeal Scheme, 2020 on the ground that no “personal hearing” has been granted and that such a discretion may not be left to the Chief Commissioner or the Director General.
The division bench of Justices SK Kaul and MM Sundresh while posting the matter on October 1, 2021 issued the notice.
The Additional Solicitor General N. Venkataraman, appearing for the Central Board Of Direct Taxes (CBDT), submitted that the matters were pending in the High Court of Allahabad, Delhi, Telangana and Kerala.
The announcement of the Faceless Appeal Scheme, 2020 was made by the Finance Minister while presenting the Union Budget 2020 on 01.02.2020. The objective faceless appeal scheme is to eliminate the physical interface between the taxpayers and the income tax authorities. This will help in curbing corruption and the arms twisting tactics by the Income Tax department.
Details of Pending Matter in High Court
Bombay High Court
In the case of Central Board Of Direct Taxes Vs. Lakshya Budhiraja W.P.(C) 8044/2020, the petitioner contended that the mechanism is discriminatory and is against the settled principles of law and in violation of Article 14 of the Constitution of India. He further submits that the right to provide or not to provide a hearing in the matter is also against the principle of Audi alteram partem i.e. no person should be judged without a fair hearing in which each party is given an opportunity to respond to the evidence against them. The division bench of Justice Manmohan and Justice Sanjeev Narula issued notice to the Government.
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