New Faceless Appeal Scheme 2021 – 10 things to know

Editorial Team, dated 30-12-2021

During the petition before the Supreme Court in the case of Lakshya Budhiraja [2021] 131 taxmann.com 51 (SC), the Additional Solicitor General submitted that the Income-tax Dept. is considering the change in the Faceless Appeal Scheme, 2020. The Additional Solicitor General sought 3 months to change the law, which the Supreme Court duly granted.

Meeting the deadline, the Central Board of Direct Taxes (CBDT) has notified the Faceless Appeal Scheme 2021, effective from 28-12-2021. The new scheme is notified in supersession of the earlier Faceless Appeal Scheme, 2020.

We have identified 10 key changes in the new Faceless Appeal Scheme, which are listed below:

1. 1.  Compulsory to allow a personal hearing if requested;
   2.  No draft appeal order;
   3.  Role of Regional Faceless Appeal Centre is removed;
   4.  Cases will be assigned to the Commissioner (Appeals) ;
   5.  Appeal Unit will have only one Commissioner (Appeals);
   6.  No need to send a recommendation to NFAC to initiate penalty proceedings;
   7.  Penalty proceedings to be initiated by same Commissioner (Appeals);
   8.  No exemption from paying tax in case of a non-filer of return;
   9.  Orders passed by Commissioner (Appeals) to be digitally signed; an
   10.  National e-Assessment Centre renamed to National Faceless Assessment Centre

Read The Changes In Detail Here