The faceless assessment scheme under Section 144B of the Income Tax Act 1961, introduced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020, eliminates the interface between the taxpayer and the jurisdictional Assessing Officer. Assessments are conducted through the National Faceless Assessment Centre (NaFAC) using automated allocation, electronic communication and video-conferencing hearings.
Under Section 144B, the NaFAC receives assessment cases, allocates them to assessment units (which may be in any jurisdiction), and manages the proceedings electronically. The assessment unit issues notices and questionnaires through the NaFAC portal, the taxpayer responds electronically, and the draft assessment order is prepared by the assessment unit, reviewed by a review unit and finalised by the NaFAC. The taxpayer has the right to request a personal hearing through video conferencing before the assessment is completed — a right that is critical for complex cases. The Supreme Court and High Courts have emphasised that faceless assessment does not dilute the principles of natural justice.
AMLEGALS advises taxpayers on navigating faceless assessment proceedings — from responding to notices and information requests, through preparing and presenting submissions, to exercising the right to a video-conferencing hearing and challenging assessment orders that violate natural-justice principles.
Preparing comprehensive responses to NaFAC notices and questionnaires within the prescribed timelines.
Exercising and preparing for the right to a personal hearing through video conferencing under Section 144B(7).
Challenging faceless assessment orders that violate principles of natural justice — failure to consider submissions, denial of hearing, non-application of mind.
Reviewing and responding to draft assessment orders issued by the NaFAC.
Advising on appeals against faceless assessment orders before CIT(A) (also faceless) and ITAT.
Advising on applications for transfer of cases out of the faceless regime in exceptional circumstances.
Faceless assessment under Section 144B is a scheme where income tax assessments are conducted without any interface between the taxpayer and the Assessing Officer. The National Faceless Assessment Centre (NaFAC) allocates cases to assessment units across India, manages communication electronically through the income tax portal, and ensures that the identity of the assessing officer remains unknown to the taxpayer.
Yes. Section 144B(7) provides that the taxpayer may request a personal hearing through video conferencing before the assessment is finalised. The request should be made in writing, and the NaFAC is required to provide the hearing. High Courts have repeatedly held that denial of a hearing in faceless assessment violates principles of natural justice and vitiates the assessment order.
Faceless assessment orders can be challenged on procedural grounds (violation of Section 144B procedure, denial of hearing, failure to consider submissions, non-service of notice) and substantive grounds (incorrect application of law, factual errors, additions without evidence). The challenge is through appeal to the CIT(A) under Section 246A, or through writ proceedings under Article 226 for jurisdictional and natural-justice violations.
Yes. The faceless penalty scheme operates similarly to faceless assessment — penalty proceedings are conducted through the NaFAC without interface between the taxpayer and the penalty officer. The taxpayer has the right to respond electronically and request a hearing.
Certain categories are excluded from the faceless assessment scheme, including: search and seizure assessments under Section 153A, assessments of international transactions and specified domestic transactions requiring Transfer Pricing Officer involvement, and other categories notified by the CBDT from time to time.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
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