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I-T dept launches faceless appeals system; here's how it'll benefit taxpayers

As per CBDT, there are over 4.6 lakh appeals pending at level of commissioner (appeals) currently; of this, 4.05 lakh appeals, i.e., about 88%, will now be handled under Faceless Appeal mechanism

Only those related to serious frauds, major tax evasion, sensitive and search matters, international tax and Black Money Act related cases will not be a part of this system

The Income Tax Department has launched the Faceless Income Tax Appeals system today, under which most I-T appeals will be dealt with in a faceless manner. The I-T Department's new system is supposed to be more efficient, transparent and accountable. As per data with the CBDT, currently, there are over 4.6 lakh appeals pending at the level of the Commissioner (Appeals) in the I-T Department. Of this, 4.05 lakh appeals, i.e., about 88%, will now be handled under the Faceless Appeal mechanism.

Only those related to serious frauds, major tax evasion, sensitive and search matters, international tax and Black Money Act related cases will not be a part of this system.  

Prime Minister Narendra Mod i had launched the scheme on August 13 while launching the Faceless Assessment and Taxpayers' Charter under the government's efforts to encourage 'transparent taxation' in India.  

Also, in recent years, the I-T Department has carried out several reforms in direct taxes for the simplification of tax processes and for the ease of compliance for the taxpayers.

What is the Faceless Appeals system?

Under the Faceless Appeals system, I-T appeals such as e-allocation of appeal, serving of notice or questionnaire, verification or hearing and communication of the appellate order -- all will be online without the need of any physical interface between the appellant and the department.  

There will be no physical interface between the taxpayers or counsels and the Income Tax Department, and people can make submissions from home, saving time and resources.

How does the Faceless Appeals system work?

The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the dynamic jurisdiction, with central issuance of notices that'll have a Document Identification Number (DIN).  

As part of the dynamic jurisdiction, the draft appellate order will be prepared in one city and will be reviewed in some other city, resulting in an objective, fair and just order, says the government.