Under this arrangement, taxpayers can present all the documents from their home. This will save time and resources. (Representational)
The government started the ‘Faceless Income Tax Appeal’ system on Friday. The purpose of this system is to honour the honest taxpayers of the country and encourage tax collection transparency. According to the statement issued by the Ministry of Finance, under the ‘Faceless Appeals,’ all income tax appeals will be disposed of in a faceless (not necessarily the personal presence of the taxpayer before the tax officer) manner in a faceless environment. However, these do not include cases related to serious fraud, widespread tax evasion, sensitive and searched cases, international tax and appeals related to the Blackman Act. Gazette notifications have been issued to make it effective.
According to the Finance Ministry, faceless appeals will not only help the taxpayers greatly but also ensure fair and equitable appeal orders. With this further litigation will also be reduced. The new system will also be very helpful in ensuring greater efficiency, transparency and accountability in the functioning of the Income Tax Department.
According to the data of the Central Board of Direct Taxes (CBDT), as on date, about 4.6 lakh appeals are pending at the level of Commissioner (Appeals) in the Department. Out of these, about 4.05 lakh appeals, i.e. about 88% of the total appeals will be disposed of under the faceless appeals system and around 85% of the total current number of commissioners (appeals) will be used for disposal of cases under the faceless appeals regime Will be done.
How will faceless appeals be?
From now on under ‘faceless appeals’, everything from e-allocation of appeals, e-communication of notices/questions, e-verification / e-inquiry to e-hearing and finally e-communication of appellate orders under Income Tax Appeal. That is, the entire process of appeal will be online. Under which no personal presence will be required between the appellant and the department. Under this, there will be no face-to-face conversation between the taxpayers or their consultants or lawyers and the Income Tax Department. Taxpayers can present all the documents from their home and thus save their time and resources.
According to the Ministry of Finance, the ‘faceless appeals’ system will involve the allocation of cases through data analytics and AI under dynamic jurisdiction. In addition, there will be an arrangement to issue notices in a centralized manner, on which the Document Identification Number (DIN) will be written. The city in which the draft appellate order will be prepared as part of dynamic jurisdiction will be reviewed not in the same city but in another city, which will result in the issuance of fair, fair and equitable orders.
PM announced on August 13
Prime Minister Modi launched the Faceless Assessment and Taxpayers Charter on August 13, 2020, as part of the ‘Transparent Taxation – Honor of Honesty’ platform. During this, he announced the launch of ‘Faceless Appeals’ on September 25, 2020, on the birth anniversary of Pandit Deendayal Upadhyay. In recent years, the Income Tax Department has implemented several reforms in Direct Tax to simplify tax procedures and ensure compliance for taxpayers.