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WHY IS THE GOVT'S FACELESS ASSESSMENT PLAN FACING CHALLENGES?




The government's faceless income tax assessment method, which was implemented two years ago to bring transparency to the process, is encountering a number of issues from the people it was supposed to assist.


Hundreds of writ petitions have been filed by taxpayers seeking relief for issues ranging from insufficient time to prepare responses to ambiguous and arbitrary notices. The constitutional legitimacy of the programme, which tries to eliminate the physical link between assessing officers and taxpayers, has also been contested in the petitions. The scheme's goal was to replace tax officers' discretion with a team-based approach.


A tax official, who requested anonymity, indicated that dozens of writs have been filed by taxpayers disputing the faceless assessment scheme. According to tax experts, the number of such cases has increased because the new system has failed to provide taxpayers with an opportunity to be heard, thereby breaching their rights.


In instances involving complex issues and large sums, the lack of a personal hearing creates serious challenges. Another issue is that final assessment orders are issued without first issuing draft orders, and in certain circumstances, the statutory procedure of issuing a show cause notice is not followed.

"There is a lack of communication between assessing officers and the Central Processing Centre of the income tax department. Large corporations are particularly facing difficulties," said a tax practitioner, requesting anonymity.



The faceless assessment measure was implemented to make the system more user-friendly for taxpayers. The revenue has continued without following the rules of natural justice, so this has been panning/turning out the reverse of what was intended. There is a lack of communication between assessing officers and the Central Processing Centre of the income tax department. Large corporations are in great need of help.


Although the faceless assessment scheme is a great concept, there are significant real-world challenges, primarily in the areas of administration and communication. Large corporations are being impacted. To address the concerns of the taxpayers, the officers should get directives from above, and it may be possible to investigate a grievance redressal procedure.


The regime's constitutional validity has been questioned in high courts as arbitrary and contrary to the established principles of natural justice and administrative law.




YKG Corp

CA Mukul Gupta

+91 9910220566

info@ykgcorp.com

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