CBDT Notified exclusion of certain cases from Faceless Penalty Scheme

Order F.no. 187/4/2021-ITA-I, dated 10-03-2022

The Central Board of Direct Taxes (CBDT) vide notification S.O. 117(e), dated 12-1-2021 had notified the Faceless Penalty Scheme, 2021 on similar lines with the Faceless Assessment Scheme, 2020 and Faceless Appeal Scheme, 2020.

The Faceless Penalty Scheme was made applicable w.e.f. 12-01-2021 and the CBDT vide Order F. No. 187/4/2021-ITA-1, dated 26-2-2021 & 20-1-2021, had notified that this scheme would not be applicable to the following cases:

(a) Penalty proceedings arising/pending in the Investigation Wing, the Directorate of I&CI, erstwhile DG (Risk-Assessment) or by any prescribed authority;
(b) Penalty proceedings arising out of any statute other than the Income-tax Act, 1961;
(c) All the penalties imposable by the officers of the level of Commissioner/Director/Commissioner (Appeals/Appeal Unit);
(d) Penalty proceedings in cases assigned to Central Charges;
(e) Penalty proceedings in cases assigned to International Tax Charges; and
(f) Penalty proceedings arising in TDS charges.

The board has notified another class of penalties that shall not be covered by the Faceless Penalty Scheme 2021.

It has been specified that penalty proceedings in cases where pendency could not be created on ITBA because of technical reasons or cases not having a PAN shall be out of the purview of the Faceless Penalty Scheme 2021.

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