The Central Board of Direct Taxes has notified the Faceless Appeal Scheme 2021 vide notification dated December 28, 2021. The new scheme has been notified in supersession of the earlier Faceless Appeal Scheme, 2020.
- The Government has introduced procedure of hearing to be conducted through Video Conferencing under the Scheme, on request of the assessee to CIT (Appeals) and when such request is made the same shall be allowed by CIT (Appeals). No discretion with the CIT (Appeals) to refuse such request of oral hearing through VC.
- The concept of Regional Faceless Appeal Centre (RFAC) has been removed under the new scheme. The National Faceless Appeal Centre (NFAC) shall assign the appeal for disposal to a Commissioner (Appeals) of a specific appeal unit. Earlier, the appeals were assigned to a specific appeal unit in any one RFAC.
- It is mandatory for the Commissioner (Appeals) to grant a personal hearing if requested by the taxpayer during e-proceedings.
- There is no concept of a draft order in the new appeal scheme. Commissioner (Appeals) prepares appeal order and send to National Faceless Appeal Centre after signing the same digitally. Thereafter, the National Faceless Appeal Centre communicates such order to the appellant. In the previous scheme, the appeal unit was required to prepare a draft order. The said draft order was then sent to another Appeal Unit for review. This was used to be done in cases where the aggregate amount of tax, penalty, interest or fee, including surcharge and cess, payable in respect of disputed issues, exceeds the specified amount.
- The Scheme has also notified procedures for the following:
- Disposal of appeal.
- Penalty proceedings.
- Rectification proceedings.
- Appellate proceedings.
- Mode of Exchange of communication.
- Authentication of electronic record.
- Delivery of electronic record.
*Tanvi Singh, Editorial Assistant has reported this brief.