The authorities’s faceless tax evaluation scheme, an try to take away particular person tax officers’ discretion and potential harassment for revenue tax payers, has managed to ship about 24,000 final orders since its introduction in August 2020, Finance Secretary Ajay Bhushan Pandey stated.
Indicating that the scheme was up and operating robustly, Mr. Pandey stated that as many as 800 instances have additionally concluded the faceless appeals course of because it was carried out on September 25, 2020.
“The system has now stabilised. Even though the last date for passing orders in scrutiny cases is March 31, we have already passed final orders more than 24,000 cases.
The faceless appeals systems are now in place and after hearing parties, more than 800 cases have seen orders being passed through the faceless manner,” he stated.
Responding to considerations of some tax specialists that a completely faceless course of for tax assessments and appeals might make it troublesome at occasions to elucidate nuances of the involved transactions, the Finance Secretary stated that the scheme permits for hearings in sure conditions.
“The scheme allows for appropriate cases where a certain hearing is necessary, so then after following protocols, a hearing is given. The very fact that more than 24,000 final orders have been passed through the faceless system demonstrates that the system has stabilised,” Mr. Pandey asserted.
‘May miss nuances’
“In the faceless regime, the main objective is to remove physical interaction as much as possible, and hence, the taxpayers may not have the opportunity to explain (in person) business-related complexities and explain various positions they have taken while filing their income-tax returns. These facilities are available in the existing system,” PwC India had famous final month in a report titled ‘Faceless Interface — a paradigm shift in administration of the income tax law’.
“A limited facility of video conferencing and telephony is being made available after extensive written submissions are filed with the Income-tax department,” it added, advising taxpayers to make sure that applicable paperwork with factual matrix can be found and filed, and their written submissions are complete.