Faceless tax assessment: 60% of allocated cases settled in a year, says CBDT’s Mody

“Where there was a case to raise tax demand, it was done and where there was no need to raise demand, no tax claim was made,” Mody stated.

After the faceless evaluation scheme was rolled out about a year in the past, the Income Tax division has settled about 1.15 lakh evaluation orders or 58% of the cases allocated for such decision, Central Board of Direct Taxes (CBDT) chairman PC Mody stated.

According to him, after the scheme was launched in August 2020, 57,985 legacy cases and 1,36,001 new cases have been allocated in faceless evaluation scheme. Out of these, 46,822 legacy cases and 59,552 new cases have been disposed of.

“Where there was a case to raise tax demand, it was done and where there was no need to raise demand, no tax claim was made,” Mody stated.

In these cases, further tax calls for have been there solely in round 8% of the cases, (in opposition to 60% throughout the earlier system) that concerned personal interface and resultant factor of subjectivity, Mody stated. The quantity concerned in tax disputes have been over `11 lakh crore in FY19 finish, as per official knowledge, up 23% over the year-ago degree; the Centre’s gross tax receipts in FY19 was Rs 20.8 lakh crore.

Out of the entire 4,12,046 cases assigned to National Faceless Assessment Centre (NFAC) after the faceless enchantment scheme was launched in September 2020, notices have been issued in 3,64,389 cases and last orders have been issued in 14,743 cases.

Faceless assessments have been initiated for the needs of making evaluation of whole revenue or loss of the assessee below part 143(3) or 144 of the Income Tax Act, 1961. The thought is to impart better effectivity, transparency and accountability by eliminating the interface between the Assessing Officer and the assesses in the course of proceedings to the extent technologically possible. The system is seen to permit optimum utilisation of the resources by way of economies of scale and practical specialisation. It is team-based evaluation with dynamic jurisdiction.

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