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A Guide to Income-tax assessments and Faceless assessment scheme

The process of assessment begins after you file your income tax return. You need to file an income tax return if your income exceeds the basic exemption limit. Assessment is the process of assessing your income or loss (including deductions and exemptions claimed) as declared in your income tax return. Your tax return is checked, your claims and tax payments are verified and your return processed by the tax department.

1) Assessment – Section 143(1)

An assessment under section 143(1) is a preliminary assessment of the income tax return submitted by a taxpayer. It is a summary assessment based on preliminary data submitted in the return and that available with the tax department. The assessment is digitally carried out and intimation about adjustments is sent through an e-mail to the taxpayer.

In an assessment under section 143(1), the income or loss gets calculated by making the adjustments, as applicable to each case:

1. 1. Any arithmetical error in the return
   2. An incorrect claim in the return which is apparent from the return (incorrect claim apparent from any information in the return)
   3. A disallowance of loss claimed in a case where the tax return in which the loss was first claimed was filed after the due date
   4. A disallowance of expenditure disclosed in the audit report but not disallowed in calculating the total income in the tax return
   5. A disallowance of deductions claimed under section 10AA or 80IA to 80IE in case the return is filed after the due date
   6. Addition of income which appears in form 26AS or form 16A or form 16 which was not considered while filing the return. However, no such adjustment will be done on or after AY 2018-19.

The department will however not make any of the above adjustments to the returned income or loss without intimating the taxpayer. The response of the taxpayer in respect of the proposed adjustments will be considered before making any adjustment. This means that the taxpayer can file response within 30 days from the date of issue of intimation. In case the taxpayer fails to make a response within 30 days, the proposed adjustments will be made and the tax return processed accordingly. The taxpayer’s response is online through their income-tax login.

An ‘incorrect claim apparent from any information in the return’ means a claim the following claims made based on an entry in the return:

1. 1. A particular claim which is inconsistent with another entry of the same item or some other item in the return filed
   2. A claim for which the taxpayer has not furnished the information required to substantiate the claim
   3. A claim for a deduction where the claim exceeds the statutory limit prescribed under the law

After considering the response from the taxpayer, the return processing takes place:

1. 1. The total income calculated and the tax, interest and late filing fee calculated accordingly.
   2. The balance tax payable or refund due calculated.
   3. An intimation issued to the taxpayer summarizing the status of the processed tax return, indicating the tax payable or refund due.
   4. An intimation issued also in the case where adjustments are made to the returned loss.

In case where no adjustments are made or where there is no sum payable or refundable, the acknowledgement of the tax return is deemed to be the intimation.

Time-Limit

The time limit for assessment/sending an intimation under section 143(1) is nine months from the end of the financial year in which the tax return is filed. For example, in case of an income tax return filed for AY 2021-22, the time limit is 31 December 2022. However, the time limit was one year until AY 2020-21.

Thus, the maximum time for processing your income tax return or tax refunds is nine months from the end of the assessment year.

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2)  Assessment – Section 143(3)

Section 143(3) assessment referred to as the scrutiny assessment is a detailed review and assessment of your tax return. The assessing officer issues a notice under section 143(2) calling upon the taxpayer to furnish information, records or evidence in support of the income tax return filed. The assessing officer carries out a detailed scrutiny of the return to confirm the correctness, ascertain the genuineness of the claims made by the taxpayer.

The assessing officer will issue notice only where they consider it necessary or expedient to ensure that the taxpayer has not calculated excessive loss or understated the income or underpaid the tax, a notice is served for carrying out a scrutiny assessment.

The taxpayer should produce the documents, books of accounts, invoices, bills, ledgers, agreements, as may be necessary to prove the genuineness of the claims made in the tax return.

The assessing officer will scrutinize in detail the deductions and exemptions claimed, the disclosures of income and expenses considering the documents and information submitted by the taxpayer.
The assessing officer will pass an order after considering the submissions, information and documents produced by the taxpayer.

From 1 April 2021, scrutiny assessment would be through the faceless assessment scheme.

Time-Limit

The time-limit to issue notice for scrutiny assessment is three months from the end of the financial year in which tax return is filed. For example, in case of an income tax return filed for AY 2021-22, the time limit is 31 June 2022. However, the time limit was six months until AY 2020-21.

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3) Best judgment assessment – Section 144

The assessing officer makes an assessment to the best of his judgment in the absence of furnishing of details or income tax return by the taxpayer. A best judgment assessment is carried out in following scenarios:

1. 1. Taxpayer fails to furnish an income tax return under section within the due date and a belated return or a revised return, as the case may be.
   2. Taxpayer fails to comply with notice issued under section 142(1) or direction for audit issued under section 142(2A)
   3. Taxpayer fails to respond to a notice for scrutiny issued under section 143(2).

In a best judgment assessment, the assessing officer considers all the material gathered and also provides the taxpayer an opportunity of being heard. For this purpose, the officer issues a notice regarding the carrying out of a best judgment assessment. However, there is no requirement for issuing such notice where a notice under section 142(1) was already issued.

The assessing officer may consider the information and documents submitted by the taxpayer and complete the assessment to the best of his judgment. The officer passes an order under section 144 calculating the total income and tax payable.

Time-Limit

The time limit to complete a best judgment assessment under section 144 is nine months from end of the assessment year in which the income was first assessable. This time limit is applicable from AY 2021-22 onwards. Prior to this, for AY 2020-21 and AY 2019-20, the time limit for section 144 is one year from end of the assessment year in which the income was first assessable.

In the case of a reference to a TPO, above time limit gets extended by another twelve months.

From 1 April 2021, scrutiny assessment would be through the faceless assessment scheme.

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4) Assessment and Re-assessment – Section 147

An assessing officer can make assessment or re-assessment in case of a taxpayer whose income has escaped assessment. The assessing officer can assess or re-assess income or loss or allowance or deductions. A re-assessment involves re-opening of an assessment where income of a taxpayer escapes assessment.

The assessing officer should issue a notice on the taxpayer before making an assessment or reassessment.

However, under the new scheme effective 1 April 2021, an assessing officer cannot issue notice unless there is information with the assessing officer to suggest that income has escaped assessment. The officer should also conduct an enquiry, provide opportunity for being heard to the taxpayer and seek approval of the specified authority before issuing the notice. The meaning of ‘specified authority’ is with reference to the time-limit for issue of notice (see paras below).

Income escaping assessment

The following piece of information is enough to issue a notice for cases other than search, survey or requisition:

1. 1. Information flagged in respect of the assessee in accordance with the risk management strategy formulated by the CBDT from time to time;
   2. Any final objection raised by the Comptroller and Auditor General of India (C&AG) to the effect that assessment in the case of the assessee was not made in accordance with the provisions of the Income Tax Act

Also, in the following search, survey or requisition cases, the assessing officer is deemed to have information to suggest that income has escaped assessment for the three assessment years immediately preceding the assessment year for which the search, survey or requisition was made:

1. 1. A search is initiated under section 132 or books of accounts, other documents or other assets are requisitioned under section 132A, on or after 1 April 2021, in the case of the assessee; or
   2. A survey is conducted under section 133A on or after 1 April 2021; or
   3. The assessing officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned under section 132 or section 132A in case of any other person on or after 1 April 2021, belongs to the assessee; or
   4. The assessing officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books of account or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after 1 April 2021, pertains or pertain to, or any information contained therein, relate to, the assessee.

Procedure before issuing notice under section 148:

An assessing officer should follow the below procedure before issuing a notice under section 148 for cases other than search, survey or requisition:

1. 1. Conduct an enquiry, if required, with the prior approval of the specified authority with respect to the information which suggests that income chargeable to tax has escaped assessment
   2. Grant an opportunity by way of hearing to the assessee, with the prior approval of the specified authority. The opportunity is through issue of a show-cause notice to the assessee requiring to show cause why a notice should not be issued under section 148. The assessee should reply within a maximum of 30 days from the date on which the notice was issued.
   3. Consider the reply, if any furnished by the assessee in response to the show-cause notice.
   4. The assessing officer shall decide, based on the material available on record and the reply of the assessee, whether it is a fit case for issue of notice under section 148. The officer shall pass an order to this effect with the approval of the specified authority. The officer should pass the order within one month from the end of the month in which they receive the assessee’s reply; Or within one month from the end of the month in which the time allowed to furnish a reply expires.

Time-Limit

The time-limit to issue a notice under section 148:

 

Particulars	Time Limit	Prescribed authority
No notice issue	After expiry of three years from the end of the assessment year	Not Applicable
Notice issue	Issued in any case (satisfying the conditions) up to three years from the end of the relevant assessment year	Principal Commissioner or Principal Director or Director in cases where notice issue is within three years.
The assessing officer has evidence which reveals that the income escaping assessment amounts to Rs 50 lakh or above	Officer can issue notice up to 10 years from the end of the relevant assessment year	Principal Chief Commissioner or Principal Director General / Chief Commissioner or Director General for issuing notice after the expiry of three years and up to a period of 10 years.

 

If the time-limit to issue notice under the erstwhile section 148 expired, the officer cannot issue a notice under the new provisions effective 1 April 2021.

The time allowed to an assessee for providing an opportunity of being heard or period during which such proceedings are stayed by an order or injunction of any Court, such period shall be excluded from the time-limit. In case if after excluding such time, the time available to the officer for passing order about the fitness of the case is less than seven days, the remaining time shall be extended by another seven days.

Faceless assessment under section 144B

The faceless assessment scheme was notified on 12 September 2019. Subsequently, the scheme was modified vide notification dated 13 August 2020. The faceless scheme later got incorporated into a new Section 144B specifying the procedure under the faceless assessment effective 1 April 2021.

A National Faceless Assessment Centre will centrally control, co-ordinate and facilitate the faceless assessments under the faceless scheme.

Faceless assessment will include scrutiny assessment under section 143(3) and summary assessment under section 144. The below cases fall under faceless assessment:

1. 1. A notice under section 143(2) for scrutiny assessment was issued by National Faceless Assessment Centra (NFAC);
   2. In case where the assessee filed an income tax return within assessment year or in response to a notice issued under section 142(1) or section 148(1); and in respect of which a notice under section 143(2) was issued
   3. In case where a notice under section 142(1) was issued and the assessee did not furnish an income tax return in response to such notice
   4. In case where the assessee did not furnish an income tax return under section 148(1) and a notice was issued under section 142(1).

Features of the scheme are:

1. 1. A National Faceless Assessment Centre to facilitate the conduct of faceless assessment proceedings in a centralised manner;
   2. Regional Faceless assessment Centres are set up to facilitate the conduct of faceless assessment proceedings in each region under the control of a Principal Chief Commissioner. They can make an assessment in accordance with the provisions of this Scheme.
   3. Assessment units set up to actually make the assessment. They will identify the material issues, seek information and analyse the information furnished by the assessee.
   4. Verification units to conduct enquiry, cross verification, examination of books of accounts, examination of witnesses and recording of statements, and such other functions as may be required for the purposes of verification.
   5. Technical units to provide technical assistance which includes any assistance or advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management or any other technical matter which may be required in a particular case or a class of cases, under this Scheme; and
   6. Review units to perform the function of review of the draft assessment order, which includes checking whether the relevant and material evidence has been brought on record, whether the relevant points of fact and law have been duly incorporated in the draft order, whether the issues on which addition or disallowance should be made have been discussed in the draft order, whether the applicable judicial decisions have been considered and dealt with in the draft order, checking for arithmetical correctness of modifications proposed, if any, and such other functions as may be required for the purposes of review.

All the communication between the among the assessment unit, review unit, verification unit or technical unit or with the assessee or any other person with respect to the information or documents or evidence or any other details, as may be necessary for the purposes of making an assessment under this Scheme shall be through the National Faceless Assessment Centre.

The assessment unit, review unit, verification unit or technical unit will consist of (a) Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, as the case may be; (b) Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Income-tax Officer, as the case may be; (c) such other income-tax authority, ministerial staff, executive or consultant, as considered necessary by the Board.

Issue of Notice:

A notice under section 143(2) would be served by the National Faceless Assessment Centre specifying the issues for selection of taxpayer’s case for assessment. The taxpayer has a period of fifteen days for filing a response with the National Faceless Assessment Centre.

Assignment of case by NFAC:

The National Faceless Assessment Centre will assign the case selected for the purposes of Faceless assessment to a specific ‘assessment unit’ in any one ‘Regional Faceless Assessment Centre’ through an automated allocation system.

The assessment unit can make a request to the NFAC for – obtain further information, documents or evidence from the taxpayer or any other person, as it may specify; Conducting of certain enquiry or verification by verification unit; Seeking technical assistance from the technical unit. The NFAC will issue a notice to the assessee for the same. Also, the NFAC will assign the request for enquiry or verification to a verification unit, and the NFAC will assign the request for technical assistance to a technical unit.

The National faceless assessment Centre will send the report it receives from the verification unit or technical unit to the concerned assessment unit.

Best judgment assessment u/s 144 if assessee fails to respond:

In case a taxpayer fails to file response to the notice, the National faceless assessment centre will issue a notice under section 144 for making a best judgment assessment. The taxpayer can file a response to the notice issued under section 144. However, if the taxpayer does not file a response, the National faceless assessment centre will inform the assessment unit who in turn will prepare a draft assessment order under best judgment assessment (section 144).

Passing draft assessment order

The ‘assessment unit’ shall, after taking into account all the relevant material gathered as above, pass a draft assessment order either accepting the returned income of the taxpayer or modifying the returned income of the taxpayer, as the case may be, and send a copy of such order to the National Faceless Assessment Centre. The assessment unit shall also provide for the details of penalty proceedings.

Examination of the draft assessment order

The National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the CBDT, including by way of an automated examination tool, whereupon it may decide to:

• • Finalise the assessment as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, on the taxpayer, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to the taxpayer on the basis of such assessment;
  • Provide an opportunity to the taxpayer, in case a modification is proposed, by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the draft assessment order; or
  • Assign the draft assessment order to a review unit in any one Regional Faceless Assessment Centre, through an automated allocation system, for conducting review of such order.

The review unit shall conduct review of the draft assessment order, referred to it by the National Faceless Assessment Centre, whereupon it may decide to:

1. 1. Concur with the draft assessment order and intimate the National faceless Assessment Centre about such concurrence; or
   2. Suggest such modification, as it may deem fit, to the draft assessment order and send its suggestions to the National Faceless Assessment Centre.

The National Faceless Assessment Centre shall, upon receiving suggestions for modifications from the review unit, assign the case to an assessment unit, other than the assessment unit which has made the draft assessment order, through an automated allocation system.

The assessment unit shall, after considering the modifications suggested by the review unit, send the final draft assessment order to the National Faceless Assessment Centre.

Finalisation of draft assessment order

The National Faceless Assessment Centre shall, upon receiving concurrence of the review unit, finalise the draft assessment order or provide an opportunity to the taxpayer in case a modification is proposed.

The taxpayer may, in a case where notice is issued for making submissions against the draft assessment order, furnish his response to the National Faceless Assessment Centre on or before the date and time specified in the notice.

In case no response is received, the NFAC will finalise the assessment as per the draft assessment order. In other cases, the NFAC will send the response received from the taxpayer to the assessment unit.

The assessment unit prepares a revised draft assessment order and sends it to the National Faceless Assessment Centre. In case no modification against the interest of the taxpayer is proposed with reference to the draft assessment order, the NFAC will finalise the draft assessment. However, if any modification against the interest of the assessee is proposed, the NFAC provides an opportunity to the assessee for hearing and making submissions. The response furnished by the taxpayer shall be dealt with by the National Faceless Assessment centre and the draft assessment order finalized.

In case eligible assessee files his objections with the Dispute Resolution Panel

If the eligible assessee files his objections with the Dispute Resolution Panel, the National Faceless Assessment Centre shall forward such directions received from Dispute Resolution Panel to the concerned assessment unit.

The assessment unit shall prepare a draft assessment order in conformity of the directions issued by the Dispute Resolution panel and send a copy of order to the National Faceless Assessment Centre.

The National Faceless Assessment Centre shall finalise draft assessment order received from assessment unit and serve a copy of order and notice for initiating penalty proceedings, if any, to the assessee. It shall issue a demand notice, specifying the sum payable by, or refund of any amount due to the assessee on the basis of such assessment.

Request for personal hearing

An assessee served with a show cause notice with respect to a draft assessment order or finalise draft order or revised draft assessment order, such assessee or their authorised representative may request for a personal hearing for making oral submissions. The discretion to approve the request for personal hearing vests with the Chief Commissioner or the Director General who is in charge of the RFAC. In case of approved request, the personal hearing should be exclusively through video conferencing or video telephony or through use of any other telecommunication software for such video call/conferencing.

Transfer the case to the jurisdictional Assessing Officer by the NFAC

The National Faceless Assessment Centre may at any stage of the assessment, if it considers necessary, transfer the case to the Assessing Officer having jurisdiction over such case with the prior approval of the Board.

Transfer all the electronic records of the case to the jurisdictional Assessing Officer

The National Faceless Assessment Centre shall, after completion of assessment, transfer all the electronic records of the case to the Assessing Officer having jurisdiction over such action as may be required under the law. The transfer will facilitate the post assessment work such as collection and recovery of demand, preparation for appeals etc.

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5) Faceless assessment under section 144B

The faceless assessment scheme was notified on 12 September 2019. Subsequently, the scheme was modified vide notification dated 13 August 2020. The faceless scheme later got incorporated into a new Section 144B specifying the procedure under the faceless assessment effective 1 April 2021.

A National Faceless Assessment Centre will centrally control, co-ordinate and facilitate the faceless assessments under the faceless scheme.

Faceless assessment will include scrutiny assessment under section 143(3) and summary assessment under section 144. The below cases fall under faceless assessment:

1. 1. A notice under section 143(2) for scrutiny assessment was issued by National Faceless Assessment Centra (NFAC);
   2. In case where the assessee filed an income tax return within assessment year or in response to a notice issued under section 142(1) or section 148(1); and in respect of which a notice under section 143(2) was issued
   3. In case where a notice under section 142(1) was issued and the assessee did not furnish an income tax return in response to such notice
   4. In case where the assessee did not furnish an income tax return under section 148(1) and a notice was issued under section 142(1).

Features of the scheme are:

1. 1. A National Faceless Assessment Centre to facilitate the conduct of faceless assessment proceedings in a centralised manner;
   2. Regional Faceless assessment Centres are set up to facilitate the conduct of faceless assessment proceedings in each region under the control of a Principal Chief Commissioner. They can make an assessment in accordance with the provisions of this Scheme.
   3. Assessment units set up to actually make the assessment. They will identify the material issues, seek information and analyse the information furnished by the assessee.
   4. Verification units to conduct enquiry, cross verification, examination of books of accounts, examination of witnesses and recording of statements, and such other functions as may be required for the purposes of verification.
   5. Technical units to provide technical assistance which includes any assistance or advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management or any other technical matter which may be required in a particular case or a class of cases, under this Scheme; and
   6. Review units to perform the function of review of the draft assessment order, which includes checking whether the relevant and material evidence has been brought on record, whether the relevant points of fact and law have been duly incorporated in the draft order, whether the issues on which addition or disallowance should be made have been discussed in the draft order, whether the applicable judicial decisions have been considered and dealt with in the draft order, checking for arithmetical correctness of modifications proposed, if any, and such other functions as may be required for the purposes of review.

All the communication between the among the assessment unit, review unit, verification unit or technical unit or with the assessee or any other person with respect to the information or documents or evidence or any other details, as may be necessary for the purposes of making an assessment under this Scheme shall be through the National Faceless Assessment Centre.

The assessment unit, review unit, verification unit or technical unit will consist of (a) Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, as the case may be; (b) Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Income-tax Officer, as the case may be; (c) such other income-tax authority, ministerial staff, executive or consultant, as considered necessary by the Board.

Issue of Notice:

A notice under section 143(2) would be served by the National Faceless Assessment Centre specifying the issues for selection of taxpayer’s case for assessment. The taxpayer has a period of fifteen days for filing a response with the National Faceless Assessment Centre.

Assignment of case by NFAC:

The National Faceless Assessment Centre will assign the case selected for the purposes of Faceless assessment to a specific ‘assessment unit’ in any one ‘Regional Faceless Assessment Centre’ through an automated allocation system.

The assessment unit can make a request to the NFAC for – obtain further information, documents or evidence from the taxpayer or any other person, as it may specify; Conducting of certain enquiry or verification by verification unit; Seeking technical assistance from the technical unit. The NFAC will issue a notice to the assessee for the same. Also, the NFAC will assign the request for enquiry or verification to a verification unit, and the NFAC will assign the request for technical assistance to a technical unit.

The National faceless assessment Centre will send the report it receives from the verification unit or technical unit to the concerned assessment unit.

Best judgment assessment u/s 144 if assessee fails to respond:

In case a taxpayer fails to file response to the notice, the National faceless assessment centre will issue a notice under section 144 for making a best judgment assessment. The taxpayer can file a response to the notice issued under section 144. However, if the taxpayer does not file a response, the National faceless assessment centre will inform the assessment unit who in turn will prepare a draft assessment order under best judgment assessment (section 144).

Passing draft assessment order

The ‘assessment unit’ shall, after taking into account all the relevant material gathered as above, pass a draft assessment order either accepting the returned income of the taxpayer or modifying the returned income of the taxpayer, as the case may be, and send a copy of such order to the National Faceless Assessment Centre. The assessment unit shall also provide for the details of penalty proceedings.

Examination of the draft assessment order

The National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the CBDT, including by way of an automated examination tool, whereupon it may decide to:

• • Finalise the assessment as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, on the taxpayer, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to the taxpayer on the basis of such assessment;
  • Provide an opportunity to the taxpayer, in case a modification is proposed, by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the draft assessment order; or
  • Assign the draft assessment order to a review unit in any one Regional Faceless Assessment Centre, through an automated allocation system, for conducting review of such order.

The review unit shall conduct review of the draft assessment order, referred to it by the National Faceless Assessment Centre, whereupon it may decide to:

1. 1. Concur with the draft assessment order and intimate the National faceless Assessment Centre about such concurrence; or
   2. Suggest such modification, as it may deem fit, to the draft assessment order and send its suggestions to the National Faceless Assessment Centre.

The National Faceless Assessment Centre shall, upon receiving suggestions for modifications from the review unit, assign the case to an assessment unit, other than the assessment unit which has made the draft assessment order, through an automated allocation system.

The assessment unit shall, after considering the modifications suggested by the review unit, send the final draft assessment order to the National Faceless Assessment Centre.

Finalisation of draft assessment order

The National Faceless Assessment Centre shall, upon receiving concurrence of the review unit, finalise the draft assessment order or provide an opportunity to the taxpayer in case a modification is proposed.

The taxpayer may, in a case where notice is issued for making submissions against the draft assessment order, furnish his response to the National Faceless Assessment Centre on or before the date and time specified in the notice.

In case no response is received, the NFAC will finalise the assessment as per the draft assessment order. In other cases, the NFAC will send the response received from the taxpayer to the assessment unit.

The assessment unit prepares a revised draft assessment order and sends it to the National Faceless Assessment Centre. In case no modification against the interest of the taxpayer is proposed with reference to the draft assessment order, the NFAC will finalise the draft assessment. However, if any modification against the interest of the assessee is proposed, the NFAC provides an opportunity to the assessee for hearing and making submissions. The response furnished by the taxpayer shall be dealt with by the National Faceless Assessment centre and the draft assessment order finalized.

In case eligible assessee files his objections with the Dispute Resolution Panel

If the eligible assessee files his objections with the Dispute Resolution Panel, the National Faceless Assessment Centre shall forward such directions received from Dispute Resolution Panel to the concerned assessment unit.

The assessment unit shall prepare a draft assessment order in conformity of the directions issued by the Dispute Resolution panel and send a copy of order to the National Faceless Assessment Centre.

The National Faceless Assessment Centre shall finalise draft assessment order received from assessment unit and serve a copy of order and notice for initiating penalty proceedings, if any, to the assessee. It shall issue a demand notice, specifying the sum payable by, or refund of any amount due to the assessee on the basis of such assessment.

Request for personal hearing

An assessee served with a show cause notice with respect to a draft assessment order or finalise draft order or revised draft assessment order, such assessee or their authorised representative may request for a personal hearing for making oral submissions. The discretion to approve the request for personal hearing vests with the Chief Commissioner or the Director General who is in charge of the RFAC. In case of approved request, the personal hearing should be exclusively through video conferencing or video telephony or through use of any other telecommunication software for such video call/conferencing.

Transfer the case to the jurisdictional Assessing Officer by the NFAC

The National Faceless Assessment Centre may at any stage of the assessment, if it considers necessary, transfer the case to the Assessing Officer having jurisdiction over such case with the prior approval of the Board.

Transfer all the electronic records of the case to the jurisdictional Assessing Officer

The National Faceless Assessment Centre shall, after completion of assessment, transfer all the electronic records of the case to the Assessing Officer having jurisdiction over such action as may be required under the law. The transfer will facilitate the post assessment work such as collection and recovery of demand, preparation for appeals etc.

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