Faceless Assessments, Rectifications and E-Advance Rulings (As Amended by the Finance Act, 2022)

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Description
Tryst Turns Triumph'. New section 144B is now virtual faceless. One draft sans "too many cooks" converts spoil to fine broth that too on time. Faceless procedure in assessment, rectifications, penalty and e-advance ruling are the present day innovations. Hitherto, the tax proceedings have been conducted manually on notice, by one officer, with fixed territorial jurisdiction and by following principles of natural justice i.e., affording opportunity of hearing to the assessee in person or through his authorised representatives and by rebutting the material used against him. Over the last few years, from 2012 to 2022 tryst measures have been taken to reform the Direct Tax regime. These measures include rationalisation of tax rates, simplification of income tax return forms, faster processing of refunds, speedy resolution of grievances and the recent introduction of faceless processes to ease the compliance burden on taxpayers and minimise the physical interface between the taxpayer and the tax authorities; with a dynamic overturning but retained territorial jurisdiction for cases of search and seizure and, now requiring special audit cases, keeping records for rectification and other functions after the processes are final and over. Making a comparison between the faceless assessment system and the current traditional system, an income or loss determination proposal, draft order is introduced over a single order of assessment. There would be no discretion in selection of assessment cases, while earlier, case selection used to be manually or computer based. The new system has automated random allocation of cases in place of single territorial jurisdiction with interaction between taxpayer and authorities inter se through a central mechanism National Faceless Assessment Centre in electronic mode. There shall be no physical indulgence between taxpayers and officers. Wide discretion and subjective assessment by single Assessing Officer is being replaced by team-based assessment and a pruned system in accordance with standard guidelines issued by CBDT, Risk Management Strategy and Automated Examination Tool.
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Table of Contents
Chapter 1         Introduction
Chapter 2         Tax Proceedings So Far
Chapter 3         Faceless Procedure Schemes
Chapter 4         Old Faceless Assessment
Chapter 5         New Faceless Assessment
Chapter 6         Comparative Faceless Assessment
Chapter 7         Faceless Penalty Scheme, 2021
Chapter 8         Faceless Rectification
Chapter 9         E-Advance Rulings Scheme, 2022
Chapter 10       Faceless Other Procedures
Appendix 1       Taxpayers’ Charter Sensitising on Faceless Assessment Scheme
Appendix 2       E-Portal for Filing Complaints
Appendix 3A    Faceless Assessment Scheme, 2019
Appendix 3B    General Directions for Giving effect to Faceless Assessment Scheme, 2019
Appendix 4       Faceless - Other proceedings
Appendix 5       Order on Jurisdiction
Appendix 6       Setting up of NFAC
Appendix 7       Setting up of RFACs
Appendix 8       SOP Personal Hearing
Appendix 9       SOP: AU, VU, TU, RU
Appendix 10     SOP Assessment Units
Appendix 11     SOP for Verification unit
Appendix 12     SOP for Review Unit
Appendix 13     SOP for Technical unit
Appendix 14     Faceless Penalty Scheme, 2021
Appendix 15     Faceless Penalty Scheme, 2021 Order
Appendix 16     Order for Assignment and Disposal of Penalty Cases
Appendix 17     Penalty levy Procedure
Appendix 18     Instruction No. 08/2011, dated 11-8-2011
Appendix 19     Authorisation of PCIT/Addl. Commissioners
Appendix 20     Prescribed Income-tax Authority u/s 142(1)
SUBJECT INDEX
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Author Details
R.P. Garg
Sunita Garg