CBDT to set up a National Faceless Appeal Centre to facilitate the conduct of e-appeal proceedings
The Central Board of Direct Taxes has notified the Faceless Appeal Scheme, 2021 via Notification No. 139/2021 - Income Tax on 28th December 2021.
Scope of the Scheme
The appeal under this Scheme shall be disposed of in respect of such territorial area or persons or class of persons or incomes or class of incomes or cases or class of cases, as may be specified by the Board.
Constitution of a National Faceless Appeal Centre
For the purposes of this Scheme, the Board may set up-
(i) a National Faceless Appeal Centre to facilitate the conduct of e-appeal proceedings in a centralised manner; and
(ii) Appeal units, as it may deem necessary to facilitate the conduct of e-appeal proceedings by the Commissioner (Appeals).
(2) All communication between the Commissioner (Appeals) and the appellant or any other person or the Assessing Officer with respect to the information or documents or evidence or any other details, as may be necessary under this Scheme shall be through the National Faceless Appeal Centre.
(3) The appeal unit referred to in clause (ii) of sub-paragraph (1) shall have the following authorities, namely:-
(a) one Commissioner (Appeals);
(b) such other income-tax authority, ministerial staff, executive or consultant to assist the Commissioner (Appeals) as considered necessary by the Board.
Procedure in Appeal
(1) The appeal referred to in paragraph 3 shall be disposed of under this Scheme as per the following procedure, namely:
(i) the National Faceless Appeal Centre shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit through an automated allocation system;
(ii) On assignment of an appeal, the Commissioner (Appeals), -
(a) may condone the delay in filing appeal if the appeal is filed beyond the time permitted under section 249 of the Act and record the reasons for such condonation or otherwise in the appeal order passed under clause (x);
(b) shall through the National Faceless Appeal Centre give notice to the appellant asking him to file his submission within the date and time specified in such notice and also send a copy of such notice to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be;
(c) may through the National Faceless Appeal Centre obtain such further information, document or evidence from the appellant or any other person, as the case may be;
(d) may through the National Faceless Appeal Centre obtain a report of the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, on grounds of appeal or information, document or evidence furnished by the appellant;
(e) may, through the National Faceless Appeal Centre, request the Assessing Officer directly or through the National Faceless Assessment Centre, as the case may be, for making further inquiry under sub-section (4) of section 250 of the Act and submit a report thereof;
(f) shall, through the National Faceless Appeal Centre serve a notice upon the appellant or any other person, as the case may be, or the Assessing Officer directly or through the National Faceless Assessment Centre, as the case may be, to submit such information, document or evidence or report, as the case may be, as may be specified by the Commissioner (Appeals) or relevant to the appellate proceedings, on a specified date and time;
(iii) the appellant or any other person, as the case may be, shall furnish a response to the notice referred to in sub-clauses (b), (c) or (f) of clause (ii), within the date and time specified therein, or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(iv) the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish a report in response to the notice referred to in sub-clauses (d), (e) or (f) of clause (ii), within the date and time specified therein or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(v) the appellant may file additional grounds of appeal to the Commissioner (Appeals) through the National Faceless Appeal Centre, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein the reason for omission of such ground in the appeal filed by him;
(vi) where the additional ground of appeal is filed-
(a) the Commissioner (Appeals) shall, through the National Faceless Appeal Centre, send the additional ground of appeal to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for providing comments, if any;
(b) the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish their comments, within the date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(c) the National Faceless Appeal Centre, on receipt of comments from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall send such comments to the Commissioner (Appeals), and where no such comments are furnished, inform the Commissioner (Appeals) accordingly;
(d) the Commissioner (Appeals) shall, after taking into consideration the comments, if any, received from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, -
(A) if is satisfied that the omission of additional ground from the form of appeal was not wilful or not unreasonable, admit such ground; or
(B) in any other case, not admit the additional ground, for reasons to be recorded in writing in the appeal order passed under clause (x);
(vii) the appellant may furnish additional evidence, other than the evidence produced by him during the course of proceedings before the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, to the Commissioner (Appeals), through the National Faceless Appeal Centre, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein as to how his case is covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the Rules;
(viii) where the additional evidence is furnished, -
(a) the Commissioner (Appeals) through the National Faceless Appeal Centre shall send the additional evidence to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for furnishing a report on the admissibility of additional evidence in accordance with rule 46A of the Rules;
(b) the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall furnish the report, as referred to in sub-clause (a), within such date and time as specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(c) the National Faceless Appeal Centre, on receipt of the report from the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, shall send such report to the Commissioner (Appeals), and where no such report is furnished, inform the Commissioner (Appeals);
(d) the Commissioner (Appeals) may, after considering the additional evidence and the report, if any, furnished by the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, admit or reject the additional evidence, for reasons to be recorded in writing, and the same shall form a part of the appeal order passed under clause (x);
(e) the Commissioner (Appeals) shall, if he admits such evidence, before taking such evidence into account in the appellate proceedings, prepare a notice to provide an opportunity through the National Faceless Appeal Centre to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, to examine such evidence or to cross-examine such witness, as may be produced by the appellant, or to produce any evidence or document, or any witness in rebuttal of the evidence or witness produced by the appellant, and furnish a report thereof and send such notice, through the National Faceless Appeal Centre, to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be;
(f) the Assessing Officer shall either directly or through the National Faceless Assessment Centre, as the case may be, furnish the report within the date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(g) the National Faceless Appeal Centre shall send the report furnished by the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, to the Commissioner (Appeals) or where no such report is furnished, inform the Commissioner (Appeals);
(h) the Assessing Officer, either directly or through the National Faceless Assessment Centre, as the case may be, may request the Commissioner (Appeals) through the National Faceless Appeal Centre to direct the production of any document or evidence by the appellant, or the examination of any witness, as may be relevant to the appellate proceedings;
(i) the Commissioner (Appeals) for the purpose of making enquiries in the appeal proceedings as referred to in sub-clause (e) of clause (ii) or where the request referred to in sub-clause (h) is received, may, if it deems fit, prepare a notice -
(A) directing the appellant to produce such document or evidence, as it may specify; or
(B) for examination of any other person, being a witness; and send such notice to the National Faceless Appeal Centre;
(j) the National Faceless Appeal Centre shall serve the notice referred to in sub-clause (i) upon the appellant or any other person, being a witness, as the case may be;
(k) the appellant or any other person, as the case may be, shall furnish his response to the notice referred to in sub-clause (j), within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre;
(l) the National Faceless Appeal Centre, on receipt of response from the appellant or any other person, as the case may be, shall send such response to the Commissioner (Appeals) or where no such response is furnished, inform the Commissioner (Appeals) accordingly;
(ix) where the Commissioner (Appeals) intends to enhance an assessment or a penalty or reduce the amount of refund, –
(a) the Commissioner (Appeals) shall prepare a show-cause notice containing the reasons for such enhancement or reduction, as the case may be, and send such notice through the National Faceless Appeal Centre;
(b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon the appellant;
(c) the appellant shall, within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, furnish his response to the National Faceless Appeal Centre;
(d) where a response is furnished by the appellant, the National Faceless Appeal Centre shall send such response to the Commissioner (Appeals), or where no such response is furnished, inform the Commissioner (Appeals) accordingly.
(x) The Commissioner (Appeals) shall, thereafter:-
(a) prepare in writing, an appeal order in accordance with the provisions of section 251 of the Act stating the points for determination, the decision thereon and the reason for decision; and
(b) send such order after signing the same digitally to the National Faceless Appeal Centre along with the details of the penalty proceedings, if any, to be initiated therein;
(xi) the National Faceless Appeal Centre shall upon receipt of the order, as referred to in sub-clause (b) of clause (x), —
(a) communicate such order to the appellant;
(b) communicate such order to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as per sub-section (7) of section 250 of the Act;
(c) communicate such order to the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for such action as may be required under the Act;
(d) where initiation of penalty has been recommended in the order, serve a notice on the appellant calling upon him to show cause as to why penalty should not be imposed upon him under the relevant provisions of the Act;
(2) Notwithstanding anything contained in sub-paragraph (1), the appeal, may be transferred at any stage of the appellate proceedings, if considered necessary, by an order in accordance with section 120 of the Act, to such Commissioner (Appeals) as may be specified in the order.
To read the official notification, click here.
CAclubindia
