CBDT notifies Faceless Appeal Scheme, 2021; CIT(A) is bound to allow request for personal hearing

Notification No. 139/2021, dated 28-12-2021

The CBDT has notified the Faceless Appeal Scheme 2021 applicable w.e.f. 28-12-2021. The new scheme has been notified in supersession of the earlier Faceless Appeal Scheme, 2020. The Board has brought several changes in the Faceless Appeal Scheme 2021, and some of the key changes are listed below:

(a) RFAC removed; Cases will assign to Commissioner (Appeals)

The concept of Regional Faceless Appeal Centre (RFAC) has been removed under the new scheme. The National Faceless Appeal Centre (NFAC) shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit. Earlier, the appeals were assign to a specific appeal unit in any one RFAC.

(b) Compulsion on CIT(A) to grant personal hearing if requested

The new scheme has replaced the word ‘may’ with ‘shall’ with respect to allowing requests for a personal hearing. Thus, it would be mandatory for the Commissioner (Appeals) to grant a personal hearing if requested by the taxpayer during e-proceedings.

(c) No draft appeal order

In the previous scheme, the appeal unit was required to prepare a draft order. The said draft order was then sent to another Appeal Unit for review. This was used to be done in cases where the aggregate amount of tax, penalty, interest or fee, including surcharge and cess, payable in respect of disputed issues, exceeds the specified amount.

There is no concept of a draft order in the new appeal scheme. Commissioner (Appeals) prepares appeal order and send to National Faceless Appeal Centre after signing the same digitally. Thereafter, the National Faceless Appeal Centre communicates such order to the appellant.

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