CBDT notifies procedure for handling assessment if case is transferred by NFAC to Jurisdictional AO

Notification F. No. 225/97/2021/ITA-II, dated 06-09-2021

Section 144B(8) empowers the Principal Chief Commissioner or the Principal Director General in charge of the National Faceless Assessment Centre (NFAC) to transfer the case to the Assessing Officer (AO) having jurisdiction over such case, with the prior approval of the CBDT. Similarly, Clause 5(2) of the Faceless Penalty Scheme, 2021, has empowered the Principal Chief Commissioner or the Principal Director General, in charge of the National Faceless Penalty Centre, to transfer penalty proceedings to the income-tax authority or the National Faceless Assessment Centre having jurisdiction over the assessee or any other person, in whose case the penalty proceedings are initiated, with the prior approval of the CBDT.

Now, the CBDT has prescribed the following procedure for handling of assessment by Jurisdictional AO in respect of such transferred cases:

(a) All processes in transferred cases may be conducted electronically to the extent technically feasible, except in those cases where the assessee does not have an e-filing account/registered e-mail to communicate electronically with Jurisdictional AO. For cases without digital footprint, the Jurisdictional AO shall endeavour to get the e-filing account of the assessee registered and then electronically conduct the proceedings;

(b) The request for personal hearings shall generally be allowed to assessee with the approval of Range Head, mainly after assessee has filed written submission to the show cause notice. The personal hearing may be allowed to assessee preferably through Video Conference. If Video Conference is not technically feasible, personal hearings may be conducted in a designated area in Income Tax Offices. The hearing proceedings may be recorded;

(c) Use of Faceless processes such as Verification Unit for online verification, Technical Unit for Technical inputs, etc. may also be considered for the non-faceless regime to the extent technically feasible;

(d) To have consistency with the unit concept in a faceless regime, the Range Head may compulsorily be involved in the finalization of assessment of such cases transferred to Jurisdictional AO, for which the provisions of Section 144A may suitably be invoked. In penalties, the approval of Range Head is already embedded in Section 274(2), over a specific monetary ceiling of ‘penalty imposable’. The same may be adhered to.

It is also clarified that in respect of such transferred cases, Jurisdictional AO shall consider the proceedings conducted so far under the faceless regime and proceed further as per the provisions of the Act and broad contours of modalities as indicated above.

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