The faceless tax system delivers 24,000 last orders: Pandey

The government’s faceless tax assessment system, an attempt to remove the discretion of individual tax officials and potential nuisance to income taxpayers, has delivered around 24,000 final orders since it was launched in August 2020, Treasury Secretary Ajay Bhushan Pandey said.

Mr Pandey pointed out the system is working robustly and said up to 800 cases have completed the faceless appeal process since its implementation on September 25, 2020.

“The system has now stabilized. Although the last date for the transfer of orders in examination cases is March 31, we have already finally ordered more than 24,000 cases.

The faceless appeal systems are now in place, and after hearing the parties, more than 800 cases have been passed on in a faceless manner, ”he said.

Responding to concerns from some tax experts that a completely faceless tax assessment and redress process could sometimes make it difficult to explain the nuances of the transactions involved, the finance secretary said the system allows hearings in certain situations.

“The system allows appropriate cases where a specific hearing is required. A hearing is held after the protocols are followed. The fact that more than 24,000 final orders have been filled through the faceless system shows that the system has stabilized, ”explained Pandey.

“Can miss nuances”

“In the faceless regime, the main goal is to eliminate physical interaction as much as possible. As a result, taxpayers may not have the opportunity to explain business complexities (in person) and explain various positions they have taken in filing their income tax refunds. These facilities are available in the existing system, ”PwC India stated last month in a report entitled“ Faceless Interface – A Paradigm Shift in the Management of Income Tax Law ”.

“Limited videoconferencing and telephony will be made available after extensive written filings are submitted to the Income Tax Department,” she added, advising taxpayers to ensure that appropriate fact-matrix documents are available and filed and that their written filings are comprehensive .

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