{"id":8929,"date":"2021-03-27T12:34:24","date_gmt":"2021-03-27T07:04:24","guid":{"rendered":"https:\/\/itatonline.org\/articles_new\/?p=8929"},"modified":"2021-03-27T12:34:24","modified_gmt":"2021-03-27T07:04:24","slug":"faceless-appeal-improving-transparency-in-taxation-a-practical-guide","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/faceless-appeal-improving-transparency-in-taxation-a-practical-guide\/","title":{"rendered":"Faceless Appeal: Improving Transparency In Taxation &#8211; A Practical Guide"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/itatonline.org\/articles_new\/wp-content\/uploads\/Shivaram-Bekal.png\" alt=\"\" width=\"175\" height=\"102\" class=\"alignleft size-full wp-image-6521\" srcset=\"https:\/\/itatonline.org\/articles_new\/wp-content\/uploads\/Shivaram-Bekal.png 175w, https:\/\/itatonline.org\/articles_new\/wp-content\/uploads\/Shivaram-Bekal-100x58.png 100w, https:\/\/itatonline.org\/articles_new\/wp-content\/uploads\/Shivaram-Bekal-150x87.png 150w\" sizes=\"auto, (max-width: 175px) 100vw, 175px\" \/><strong>Dr. K. Shivaram, Senior  Advocate, and Mr. Shashi Bekal, Advocate, have explained in meticulous detail the entire law and practice relating to the newly introduced scheme of &#8216;Faceless Appeals&#8217;. The learned authors have also offered valuable suggestions on how the scheme can be improved. They have also prepared a check-list which will enable taxpayers and professionals to derive maximum advantage from the scheme<\/strong><\/p>\n<p align=\"left\"><em>Abstract<\/em><br \/>\n    <a href=\"https:\/\/www.youtube.com\/watch?v=8EHlFlcvpcA\">The Hon&rsquo;ble Prime Minister  on August 13, 2020 launched the platform for Honouring the Honest<\/a> which  included a Scheme for Faceless Appeals <em>inter alia <\/em>which has been  notified by the Central Board for Direct taxes (<strong>CBDT<\/strong>) vide <a href=\"https:\/\/www.incometaxindia.gov.in\/Communications\/Notification\/Notification_76_2020.pdf\"><strong><em>Notifications  dated September 25, 2020 bearing No. 76 of 2020<\/em><\/strong><\/a><a href=\"https:\/\/www.incometaxindia.gov.in\/Communications\/Notification\/notification_77_2020.pdf\"><strong><em>and  No. 77 of 2020<\/em><\/strong><\/a><em>. <\/em><a name=\"_Hlk49520327\" id=\"_Hlk49520327\"><\/a><a href=\"http:\/\/egazette.nic.in\/WriteReadData\/2020\/218938.pdf\">The Finance Act, 2020 <\/a><strong><em>(2020)  428 ITR 1 (St)<\/em><\/strong>vide amendment in section 250(6C) of the Income-tax Act,  1961 (<strong>Act<\/strong>) expanded the scope of e-assessment to include e-appeals.  This Article aims at explaining the provisions relating to the Scheme of Faceless  Appeals and addressing certain issues arising out of the Scheme.<strong><\/strong><\/p>\n<p><!--more--><\/p>\n<p>This  Article is relevant to every Lawyer, Charter Accountant, tax practitioner and  taxpayer. The Article provides an understanding of the future of tax litigation  before the first appellate authority under the Scheme of Income- tax Act. As  stated by the Hon&rsquo;ble Prime Minister these reforms will curb corruption and  ensure a free, fair, and transparent tax environment.<\/p>\n<p>India is among the first few  countries to adopt a system of dynamic jurisdiction. The Scheme is of Faceless  Appeals new and is undergoing pilot proceedings. Minor lacuna exists in the  scheme, few technical glitches and procedural issues will be faced in the  months ahead. However, these issues will be clarified and rectified by the  administration in due course. The Scheme of Faceless Appeals is a game changer.  It will definitely live up to the Honourable Prime Minister&rsquo;s vision of  improving transparency, efficiency, and accountability. Moreover, only  meritorious submissions will be upheld under this Scheme; that itself plays a  huge role in reducing tax terrorism and honouring the honest taxpayer.<\/p>\n<p><br clear=\"all\" \/><\/p>\n<p align=\"left\"><strong><u>Table of contents<\/u><\/strong><br \/>\n    <strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><br \/>\n    <em>Abstract<\/em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n    <strong>Part I &ndash; Introduction<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n    <strong>Part II &ndash; Faceless Appeal Scheme<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  1. Scope of the Scheme&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  2.  Faceless Appeal Centres&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  3.  Procedure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  4.  Penalty Proceedings &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  5.  Rectification Proceedings&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  6.  Personal Hearing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  7.  Miscellaneous Provisions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  <strong>Part III &ndash; Challenges&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><br \/>\n  1.  Constitutional Validity<br \/>\n  2. Natural Justice &ndash; Right to  inspect records<br \/>\n  3. Natural Justice &ndash; Speaking Order<br \/>\n  4.  Applicability of Jurisdictional Precedents&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  5.  Compromising the independence and judicial autonomy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  6.  Clarification on<em> Ex-parte<\/em> Orders&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  7.  Fragmentation of Quasi-Judicial Powers&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  8.  No provision for Early hearing&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  9.  Clarification on signing authority&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  10.  Clarification on sanction for initiation of prosecution &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  11.  Lack of Opportunity for  representation &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br \/>\n  <strong>Part IV &ndash; Check List<\/strong><br \/>\n  1.  Existence of a Draft Order <br \/>\n  2.  Response to Penalty Notice <br \/>\n  3.  Drafting Statement of Facts <br \/>\n  4.  Drafting Grounds of Appeal <br \/>\n  5.  Submissions before the NFAC <br \/>\n  6.  Seeking adjournments <br \/>\n  <strong>Part V &#8211; <em>D&eacute;nouement<\/em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><br clear=\"all\" \/><br \/>\n  <br \/>\n  <strong>Part I &#8211; Introduction<\/strong><\/p>\n<p><a href=\"https:\/\/www.indiabudget.gov.in\/doc\/Finance_Bill.pdf\">The Finance Bill,  2020<\/a><strong><em>(2020) 420 ITR&nbsp; 145\/ 221 (St)<\/em><\/strong> vide proposed  amendments under section 274 and 250 of the Act sought to expand the scope of  e-assessment by introducing provisions pertaining to e-penalty and e-appeals,  respectively. <\/p>\n<p>According  to the <a href=\"https:\/\/www.indiabudget.gov.in\/doc\/memo.pdf\">Memorandum to the  Finance Bill, 2020<\/a>,<strong><em>(2020) 420 ITR 249 (St)<\/em><\/strong> The filing of  appeals before Commissioner (Appeals) has already been enabled in an electronic  mode. However, the first appeal process under the Commissioner (Appeals), which  is one of the major functions\/ processes that is not yet in full electronic  mode. A taxpayer can file appeal through his registered account on the e-filing  portal. However, the process that follows filing of appeal is neither  electronic nor faceless. In order to ensure that the reforms initiated by the  Department to eliminate human interface from the system reach the next level,  it is imperative that an e-appeal scheme be launched on the lines of  e-assessment scheme. <\/p>\n<p>Accordingly,  it was proposed to insert sub-section (6A) in section 250 of the Act to provide  for the following:<\/p>\n<ul>\n<li><span dir=\"ltr\">Empowering Central Government  to notify an e-appeal scheme for disposal of appeal so as to impart greater  efficiency, transparency and accountability. <\/span><\/li>\n<li><span dir=\"ltr\">Eliminating the interface  between the Commissioner (Appeals) and the appellant in the course of appellate  proceedings to the extent technologically feasible. <\/span><\/li>\n<li><span dir=\"ltr\">Optimizing utilization of the  resources through economies of scale and functional specialisation. <\/span><\/li>\n<li><span dir=\"ltr\">Introducing an appellate system  with dynamic jurisdiction in which appeal shall be disposed of by one or more  Commissioner (Appeals).<\/span><\/li>\n<\/ul>\n<p>Further,  it was also proposed to empower the Central Government, for the purpose of  giving effect to the scheme made under the proposed sub-section, by  notification in the Official Gazette, to direct that any of the provisions of  this Act relating to jurisdiction and procedure of disposal of appeal shall not  apply or shall apply with such exceptions, modifications and adaptations as may  be specified in the notification<\/p>\n<p>In  lieu of the above, The Hon&rsquo;ble Prime Minister launched a platform for honouring  the honest taxpayers on August 13, 2020 wherein he launched three  initiatives viz. i. Faceless Assessment, ii. Faceless Appeals, and iii.  Taxpayer&rsquo;s Charter. The Faceless Appeal Scheme was made effective from September   25, 2020.<\/p>\n<p><strong>Part II &ndash; Faceless Appeal Scheme<\/strong><\/p>\n<p>On September   25, 2020,  The CBDT vide Notification bearing No. 76 &amp; 77 of 2020, launched the scheme  of faceless appeals <strong><em>(2020) 428 ITR 1 (St)<\/em><\/strong>. In this article wehave  made an attempt to explain the provisions of the said Scheme.<\/p>\n<p><strong>1.  Scope of the Scheme [<\/strong><strong>Para<\/strong><strong> 3 of  the Scheme]<\/strong><\/p>\n<p>The  appeal under this Scheme shall be disposed of in respect of such territorial  area or persons or class of persons or incomes or class of incomes or cases or  class of cases, as may be specified by the Board.<\/p>\n<p>The  Finance Ministry vide <a href=\"https:\/\/pib.gov.in\/PressReleseDetailm.aspx?PRID=1658982\">Press release  dated September 25, 2020<\/a> had stated that under Faceless Appeals, all Income  Tax appeals will be finalised in a faceless manner under the faceless ecosystem  with the exception of appeals relating to serious frauds, major tax evasion,  sensitive &amp; search matters, International tax and Black Money Act.<\/p>\n<p>As per data with  CBDT, as on date there is a pendency of almost 4.6 lakh appeals at the level of  the Commissioner (Appeals) in the Department. Out of this, about 4.05 lakh  appeals, i.e., about 88 per cent of the total appeals will be handled under the  Faceless Appeal mechanism and almost 85 per cent of the present strength of  Commissioners (Appeals) shall be utilised for disposing off the cases under the  Faceless Appeal mechanism. <\/p>\n<p><strong>2.  Faceless Appeal Centres [<\/strong><strong>Para<\/strong><strong> 4 of  the Scheme]<\/strong><\/p>\n<p>For  this Scheme, the Board has set up:<\/p>\n<ul>\n<li><span dir=\"ltr\">A National Faceless Appeal  Centre (<strong>NFAC<\/strong>) to facilitate the conduct of e-appeal proceedings in a  centralised manner. The NFAC will be vested with the jurisdiction to dispose  appeal in accordance with the provisions of this Scheme.<\/span><\/li>\n<\/ul>\n<p>The CBDT vide <a href=\"https:\/\/www.incometaxindia.gov.in\/Communications\/Notification\/notification_80_2020.pdf\">Notification dated September 25, 2020  bearing Notification No. 80 of  2020<\/a>has notified  income-tax authorities to facilitate conduct of Faceless Appeals under NFAC. <\/p>\n<ul>\n<li><span dir=\"ltr\">Regional Faceless Appeal  Centres (<strong>RFAC<\/strong>) to facilitate the conduct of e-appeal proceedings. The  RFAC shall be vested with the jurisdiction to dispose appeal in accordance with  the provisions of this Scheme.<\/span><\/li>\n<\/ul>\n<p>The CBDT vide <a href=\"https:\/\/www.incometaxindia.gov.in\/Communications\/Notification\/notification_81_2020.pdf\">Notification dated September 25, 2020  bearing Notification No. 81 of  2020<\/a> has notified  income-tax authorities to facilitate conduct of Faceless Appeals under RFAC. <\/p>\n<ul>\n<li><span dir=\"ltr\">Appeal units (<strong>AU<\/strong>), as it  may deem necessary to facilitate the conduct of e-appeal proceedings, to  perform the function of disposing appeal, which includes admitting additional  grounds of appeal, making such further inquiry as thinks fit, directing the  NeAC or AO, as the case may be, for making further inquiry, seeking information  or clarification on admitted grounds of appeal, providing opportunity of being  heard to the appellant, analysis of the material furnished by the appellant,  review of draft order, and such other functions as may be required for the  purposes of this Scheme.<\/span><\/li>\n<\/ul>\n<p>An AU may contain one or more Commissioner  (Appeals), and such other income-tax authority, ministerial staff, executive or  consultant to assist the Commissioner (Appeals) as considered necessary by the  Board.&nbsp; <\/p>\n<p>All  communication between the appeal unit and the appellant or any other person or  the National e-Assessment Centre (<strong>NeAC<\/strong>) or the Assessing Officer with  respect to the information or documents or evidence or any other details, as  may be necessary under this Scheme shall be through the NFAC. <\/p>\n<p><strong>3.  Procedure [<\/strong><strong>Para<\/strong><strong> 5 of  the Scheme]<\/strong><\/p>\n<p><strong>3.1.  Assignment<\/strong><\/p>\n<p>The NFAC assigns the appeal to  any specific AU in any one RFAC through an automated allocation system. The  Automated allocation is randomised by using technological tools, artificial  intelligence and machine learning for optimal usage of resources. <\/p>\n<p><strong>3.2.  Admission<\/strong><\/p>\n<p><strong>Condonation of delay<\/strong>: Where  a taxpayer has filed an appeal after the expiration of time specified in  section 249(2) of the Act, the AU may admit such appeal if it is satisfied that  the appellant had sufficient cause for not filing the appeal within the said  time. In any other case, it may reject the appeal. The AU is required to  intimate about such acceptance or rejection to the NFAC.<\/p>\n<p><strong>Exemption under section 249(4)  of the Act<\/strong>: Under the Act, where a taxpayer has not filed the return  of income, the Commissioner (Appeals) shall not admit appeal unless the  prescribed of tax has been paid. However, the Commissioner (Appeals) is  empowered to exempt the tax payer on account of good and sufficient reasons  which have to be recorded in writing. Where the taxpayer has applied for such  an exemption under section 249(4) of the Act, the AU is empowered with the  power to exempt. The AU shall intimate about the acceptance and rejection of  the appeal to the NFAC.<\/p>\n<p>Pursuant thereto, the NFAC  shall intimate the admission or rejection of appeal by the Appeal Unit, as the  case may be, to the appellant.<\/p>\n<p><strong>3.3.  Request for Details<\/strong><\/p>\n<p>Once an appeal is admitted by  the AU, it may request the NFAC to gather such further information, document or  evidence from the taxpayer\/ appellant or any other 3rd person, as it  may specify.<\/p>\n<p><strong>Remand report<\/strong>: The  AU can also request to NFAC to obtain a report of the NeAC or the AO on grounds  of appeal or information, document or evidence filed by the appellant.<\/p>\n<p>Further, AU may request NFAC to  direct the NeAC or the AO for making further inquiry under Section 250(4) of  the Act and submit a report thereof.<\/p>\n<p><strong>3.4.  Issuance of Notice<\/strong><\/p>\n<p>the NFAC shall serve a notice  upon the appellant or any other person, or the NeAC or the Assessing Officer,  as the case may be, to submit such information, document or evidence or report,  as the case may be, as may be specified by the AU to the appellate proceedings,  on a specified date and time.<\/p>\n<p><strong>3.5.  Response to Notice<\/strong><\/p>\n<p>The  appellant or any other person, NeAC or the AO, shall furnish a response\/ report  in response to the notice, as the case may be, within the date and time  specified therein or such extended date and time as may be allowed on the basis  of an application made in this behalf, to the NFAC.<\/p>\n<p>Where  response is to be filed by the appellant or any other person, as the case may  be, or a report is furnished by the NeAC or the Assessing Officer, the NFAC  shall send such response or report to the AU, and where no such response or  report is filed, inform the AU<\/p>\n<p><strong>3.6.  Filing of Additional Ground<\/strong><\/p>\n<p>The appellant may file  additional ground of appeal in such form, as may be specified by the NFAC,  specifying therein the reason for omission of such ground in the appeal filed  by him; <\/p>\n<p>Where the additional ground of  appeal is filed- <\/p>\n<ul>\n<li><span dir=\"ltr\">The NFAC shall send the  additional ground of appeal to the NeAC or the AO, as the case may be, for  providing comments, if any, and to the AU; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NeAC or the AO, as the case  may, shall furnish their comments, within the date and time specified or such  extended date and time as may be allowed on the basis of an application made in  this behalf, to the NFAC; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">Where comments are filed by the  NeAC or the AO, as the case may be, the NFAC shall send such comments to the  AU, and where no such comments are filed, inform the AU; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The AU shall, after taking into  consideration the comments, if any, received from the NeAC or the AO, as the  case may be&mdash; <\/span><\/li>\n<\/ul>\n<p>(A) if it is satisfied that the omission of  additional ground from the form of appeal was not wilful or unreasonable, admit  such ground; or <br \/>\n  (B) in any other case, not admit the  additional ground, for reasons to be recorded in writing and intimate the NFAC; <\/p>\n<p>The NFAC shall intimate the  admission or rejection of the additional ground, as the case may be, to the  appellant.<strong><\/strong><\/p>\n<p><strong>3.7.  Filing of Additional Evidence<\/strong><\/p>\n<p>The  appellant may file additional evidence, other than the evidence produced by him  during the course of proceedings before the NeAC or the AO, as the case may be,  in such form, as may be specified by the NFAC, specifying therein as to how his  case is covered by the exceptional circumstances specified in Rule 46A of the  Income tax Rules, 1962 (<strong>Rules<\/strong>).<\/p>\n<p>Where  the additional evidence is filed:<\/p>\n<ul>\n<li><span dir=\"ltr\">The NFAC shall send the  additional evidence to the NeAC or AO, as the case may be, for furnishing a  report within the specified date and time on the admissibility of additional  evidence under rule 46A of the Rules; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NeAC or AO, as the case may  be, shall furnish the report to the NFAC within the date and time specified, or  such extended date and time as may be allowed on the basis of an application  made in this behalf, by the NFAC. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">Where the report is furnished by  the NeAC or AO, as the case may be, the NFAC shall send such report to the AU,  and where no such report is furnished, inform the AU; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The appeal unit may, after  considering the additional evidence and the report, if any, furnished by the  NeAC or AO, as the case may be, admit or reject the additional evidence, for  reasons to be recorded in writing, and intimate the NFAC; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NFAC shall intimate the  admission or rejection of additional evidence, as the case may be, to the  appellant and the NeAC or AO, as the case may be;<strong><\/strong><\/span><strong>&nbsp;<\/strong><\/li>\n<\/ul>\n<p><strong>3.8.  Admission of Additional Evidence<\/strong><\/p>\n<p>If  the additional evidence filed by the appellant is admitted by the AU, the  following procedure shall be followed:<\/p>\n<ul>\n<li><span dir=\"ltr\">The AU shall, before taking  such evidence into account in the appellate proceedings, prepare a notice to  provide an opportunity to the NeAC or AO, as the case may be, within the date  and time specified there into examine such evidence or to cross-examine such  witness, as may be produced by the appellant, or to produce any evidence or  document, or any witness in rebuttal of the evidence or witness produced by the  appellant, and furnish a report thereof, and send such notice to the NFAC; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NFAC shall serve the notice  upon the NeAC or AO, as the case may be; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NeAC or AO, as the case may  be, shall furnish the report, to the NFAC, within the date and time specified,  or such extended date and time as may be allowed on the basis of an application  made in this behalf, by the NFAC; <\/span><\/li>\n<\/ul>\n<ul>\n<li><span dir=\"ltr\">The NFAC shall send the report  furnished by the NeAC or AO, as the case may be, to the AU or where no such  report is furnished, inform the appeal unit; <\/span><\/li>\n<\/ul>\n<p>The  NeAC or AO may request the NFAC to direct the production of any document or  evidence by the appellant, or the examination of any witness, as may be  relevant to the appellate proceedings.<\/p>\n<p>The Hon&rsquo;ble Bombay High Court in the case of <strong><em>CIT v. <\/em><\/strong><strong><em>Prabhu Steel Industries  Ltd[2014] 265 CTR 581 <\/em><\/strong><strong><em>(Bom.)(HC)<\/em><\/strong> held that where the valuation report is involved the CIT (A) and Tribunal is  bound to give notice to valuation officer. <\/p>\n<p>Even as per the&nbsp; faceless appeal scheme, it may be mandatory  to the AU to issue notice of hearing via the NFAC to the Valuation Officer  where the&nbsp; issue is decided by the  Assessing Officer on the basis of report of the valuation officer. <\/p>\n<p><strong>3.9.  Production of Evidences<\/strong><\/p>\n<p>NeAC  or AO may request the NFAC to direct the appellant to produce any document or  evidence or to examine any witness relevant to the appellate proceedings. If  such request is received form the appellant, NFAC shall send such request to  the AU.<\/p>\n<p>The  AU, after considering such request, may prepare a notice directing the  appellant to produce such document or evidence or for examination of any other  person being a witness. Such notice shall be sent to the NFAC.<\/p>\n<p>NFAC  shall serve the notice received from AU to appellant or any other person being  a witness. Person to whom such notice is served shall file his response within  the date and time specified in the notice or such extended date and time as may  be allowed based on application made in this behalf.<\/p>\n<p>Response  received from person shall be sent to AU. In case no response is received, NFAC  shall inform the appeal unit.<\/p>\n<p><strong>3.10.  Enhancement or reduction<\/strong><\/p>\n<p>If the  AU intends to enhance an assessment or a penalty or reduce the amount of refund  available to appellant, it shall prepare a show-cause notice containing the  reasons for such enhancement or reduction and forward such notice to the NFAC.<\/p>\n<p>NFAC  shall issue such a notice to appellant. The appellant shall file his response  within the date and time specified in the notice or such extended date and time  as may be allowed based on application made in this behalf. <\/p>\n<p>NFAC  shall send the response received from appellant to Appeal Unit. In case no  response is received, NFAC shall inform the AU.<\/p>\n<p><strong>3.11.  Draft Order<\/strong><\/p>\n<p>The  Appeal Unit shall prepare draft order in accordance with the provisions of  section 251 of the Act after considering all the relevant material available on  the record,response filed by the appellant or any other person,report furnished  by the NeAC or AO; andany matter arising out of the proceedings in which the  order appealed against was passed, notwithstanding that such matter was not  raised in the appeal.<\/p>\n<p>The  draft order prepared by the Appeal Unit shall be sent to NFAC along with  details of the penalty proceedings, if any, to be initiated therein.<\/p>\n<p><strong>3.12.  Review of Draft Order<\/strong><\/p>\n<p>Under  the Scheme the draft order from AU, shall be sent to another AU for review in  case where the aggregate amount of tax, penalty, interest or fee, including  surcharge and cess, payable in respect of disputed issues, exceed specified  amount.<\/p>\n<p>In any  other case, the NFAC may:<br \/>\n  (a)  Finalise the order after examining it in accordance with the risk management  strategy specified by the Board, including by way of an automated examination  tool; or<\/p>\n<p>(b)  Send the draft order for conducting review to an appeal unit, other than the  unit which prepared it, through an automated allocation system.<\/p>\n<p>The AU  which received the draft order shall review it and may decide to:<\/p>\n<p>(a)  Concur with the draft order and intimate the NFAC about such concurrence; or<\/p>\n<p>(b)  Suggest such variation, as it may deem fit, to the draft order and send its  suggestions to the NFAC.<\/p>\n<p><strong>3.13.  Assignment of appeal to another AU<\/strong><\/p>\n<p>NFAC  shall finalise the appeal as per the draft order if it has received concurrence  of the Appeal Unit. However, if it has received any suggestion for variation  then it shall again assign the appeal to another Appeal Unit in any one RFAC  through an automated allocation system. This Appeal Unit shall be the unit  other than the unit which has prepared or reviewed the draft order.<\/p>\n<p>In  case where the suggestion for variation intend to enhance an assessment or a  penalty or reduce the amount of refund, the Appeal Unit to whom the appeal is  assigned shall prepare a revised draft order as per the procedure laid down.  The AU shall also be required to follow the same laid down procedure.In any  other case, the AU shall prepare a revised draft order.<\/p>\n<p>The  Appeal Unit shall send its order to NFAC along with details of the penalty  proceedings, if any, to be initiated therein.<\/p>\n<p>It is  pertinent to understand that the review of the draft order and its assignment  to another AU, is with a view to impart greater efficiency and quality of  Order. The draft Order of the first AU is not undermined or revised by a  superior authority; it is merely reviewed by another AU to ensure robustness.  The independence of the quasi-judicial authority is not interfered with, as the  final order is issued by the NFAC.<\/p>\n<p><strong>3.14.  Final Order<\/strong><\/p>\n<p>The  NFAC shall finalise the appeal, pass the appeal order and communicate such  order to: the Appellant, the Principal Chief Commissioner or Chief Commissioner  or Principal Commissioner or Commissioner as per section 250(7) of the Act; and  NeAC or AO for such action as may be required under the Act.<\/p>\n<p>In  case where initiation of penalty has been recommended in the order, NFAC shall  serve a notice on the appellant calling upon him to show cause as to why  penalty should not be imposed upon him under the relevant provisions of the  Act.<\/p>\n<p><strong>3.15.  Transfer of Appeal<\/strong><\/p>\n<p>If it  is considered necessary, the Principal Chief Commissioner or the Principal  Director General, in charge of NFAC, may transfer the appeal with the prior  approval of the Board to such Commissioner (Appeals) as may be specified in its  order. The appeal can be transferred at any stage of the appellate proceedings.<\/p>\n<p><strong>4.  Penalty Proceedings [<\/strong><strong>Para<\/strong><strong> 6of  the Scheme]<\/strong><\/p>\n<p>Appeal  unit may, in the course of appeal proceedings, for non-compliance of any  notice, direction or order issued under this Scheme on the part of the  appellant or any other person, as the case may be, send recommendation for  initiation of any penalty proceedings to the NFAC.<\/p>\n<p>The NFAC  shall, upon receipt of recommendation, serve a notice on the appellant or any  other person, as the case may be, calling upon him to show cause as to why  penalty should not be imposed upon him under the relevant provisions of the  Act. <\/p>\n<p>The  appellant or any other person, as the case may be, shall file a response to the  show-cause notice within the date and time specified in such notice, or such  extended date and time as may be allowed on the basis of an application made in  this behalf, to the NFAC. <\/p>\n<p>The NFAC  shall assign the recommendation for initiation of penalty proceedings, along  with the response filed, if any, by the appellant or any other person, as the  case may be, to a specific appeal unit in any one Regional Faceless Appeal  Centre through an automated allocation system. <\/p>\n<p>The  appeal unit shall, after taking into account all the relevant material  available on the record, including the response filed, if any, by the appellant  or any other person, as the case may be, prepare a draft order and send a copy  of such order to the NFAC; or drop the penalty after recording reasons, under  intimation to the NFAC. <\/p>\n<p>Where  the appeal unit has dropped the penalty, the NFAC shall send an intimation  thereof, or where the appeal unit sends a draft order, the NFAC shall pass the  order for imposition of penalty as per such draft, and communicate such order,  to the appellant or any other person, as the case may be; and&nbsp; the NeAC or AO for such action as may be  required under the Act.<\/p>\n<p><strong>5.  Rectification Proceedings [<\/strong><strong>Para<\/strong><strong> 7of  the Scheme]<\/strong><\/p>\n<p>With a  view to rectifying any mistake apparent from the record the NFAC may amend any  order passed by it, by an order to be passed in writing. <br \/>\n  An  application for rectification of mistake may be filed with the NFAC by the,<br \/>\n  (a)  appellant or any other person, or<br \/>\n  (b)  appeal unit preparing or reviewing or revising the draft order; or <br \/>\n  (c)  the National e-Assessment Centre or the Assessing Officer, as the case may be. <\/p>\n<p>Where  any application is received by the NFAC, it shall assign such application to a  specific AU in any one RFAC through an automated allocation system. The AU  shall examine the application and prepare a notice for granting an opportunity:<br \/>\n  (a) To  the appellant or any other person where the application has been filed by the NeAC  or AO; or <br \/>\n  (b) To  the NeAC or AO where the application has been filed by the appellant or any  other person; or <br \/>\n  (c) To  the appellant or any other person and the NeAC or AO where the application has  been filed by an AU. <br \/>\n  and  send the notice to the NFAC. <\/p>\n<p>The NFAC  shall serve the notice upon the appellant or any other person, as the case may  be, or the NeAC or the AO, as the case may be, calling upon him to show cause  as to why rectification of mistake should not be carried out under the relevant  provisions of the Act. <\/p>\n<p>The  appellant or any other person, as the case may be, or the NeAC or the AO, as  the case may be, shall file a response to the notice, within the date and time  specified therein, or such extended date and time as may be allowed on the basis  of an application made in this behalf, to the NFAC. <\/p>\n<p>Where  a response, is filed by the appellant or any other person, as the case may be,  or the NeAC or the AO, as the case may be, the NFAC shall send such response to  the appeal unit, or where no such response is filed, inform the appeal unit. <\/p>\n<p>The  appeal unit shall, after taking into consideration the application and  response, if any, filed by the appellant or any other person, as the case may  be, or the NeAC or the AO, as the case may be, prepare a draft order, for  rectification of mistake; or for rejection of application for rectification,  citing reasons thereof; and send the order to the NFAC. <\/p>\n<p>The NFAC  shall upon receipt of draft order, pass an order as per such draft and  communicate such order to the appellant or any other person, as the case may  be; and to the NeAC or the AO, as the case may be, for such action as may be  required under the Act.<\/p>\n<p><strong>6.  Personal Hearing [<\/strong><strong>Para<\/strong><strong> 12of  the Scheme]<\/strong><\/p>\n<p>An appellant or his authorized representative is not required to appear  before the income-tax authority at the NFAC or RFAC or AU set up under this  Scheme in connection with any proceedings. However, the appellant or his  authorized representative may request for personal hearing so as to make his  oral submissions or present his case before the AU.<\/p>\n<p>The Chief Commissioner or the Director General, in charge of the RFAC  under which the concerned appeal unit is set up, may approve the request for  personal hearing if he is of the opinion that the request is covered under  specified circumstances.<\/p>\n<p>Where the request is approved, personal hearing shall be conducted  exclusively through video conferencing or video telephony, including use of any  telecommunication application software which supports video conferencing or  video telephony, in accordance with the procedure laid down by the Board.<\/p>\n<p>Further, any examination or recording of the statement of the appellant  or any other person shall be conducted by CIT(Appeals) in any appeal unit,  exclusively through video conferencing or video telephony, including use of any  telecommunication application software which supports video conferencing or  video telephony in accordance with the procedure laid down by the Board.<\/p>\n<p>The Board shall establish suitable facilities for video conferencing or  video telephony including telecommunication application software which supports  video conferencing or video telephony at such locations as may be necessary, so  as to ensure that a person is not denied the benefit of this Scheme merely on  the ground that such person does not have access to video conferencing or video  telephony at his end.<\/p>\n<p>It is pertinent to note that Section 250 of the Act i.e. Procedure in  appeal refers to a &ldquo;hearing&rdquo;. It appears that the Scheme has not provided for a  hearing as a matter of right rather as a matter of discretion. On this point  the scheme appears to not be in consonance with the provisions of the Act. It  is desired that the before passing the final order the NFAC may give an  opportunity of virtual hearing to the appellant or its representativesor the  Assessing Officer. The methodology adopted by the Appellate Tribunal may be  adopted.&nbsp; This will enhance transparency  in the proceedings.<\/p>\n<p><strong>7.  Miscellaneous Provisions<\/strong><\/p>\n<p><strong>7.1.  Appellate Proceedings<a name=\"_Hlk56448897\" id=\"_Hlk56448897\">[<\/a><\/strong><strong>Para<\/strong><strong> 8 of the Scheme]<\/strong><strong> <\/strong><\/p>\n<p>An  appeal against an order passed by the NFAC under this Scheme shall lie before  the Income Tax Appellate Tribunal (<strong>ITAT<\/strong>) having jurisdiction over the  jurisdictional Assessing Officer. Subject to the provisions of the scheme,  where any order passed by the NFAC or Commissioner (Appeals) is set-aside and  remanded back to the NFAC or Commissioner (Appeals) by the ITAT or High Court  or Supreme Court, the NFAC shall pass the order in accordance with the  provisions of this Scheme. <\/p>\n<p><strong>7.2. <\/strong><strong>Exchange  of communication exclusively by electronic mode [<\/strong><strong>Para<\/strong><strong> 9 of  the Scheme]<\/strong><\/p>\n<p>For  the purposes of this Scheme, all communications between the NFAC and the  appellant, or his authorised representative, shall be exchanged exclusively by  electronic mode; and all internal communications between the NFAC, the RFAC,  the NeAC, the AO and the AU shall be exchanged exclusively by electronic mode. <\/p>\n<p>As per  section 282 of the Act, dealing with service of notice generally, the  Explanation &ndash; For the purposes of this section , the expressions &ldquo;Electronic  mail&rdquo; and &ldquo;Electronic mail message&rdquo; shall have the meanings as assigned to them  in Explanation to section 66A of the Information Technology Act,2000 (21 of  2000).Explanation to 66A reads as under &ldquo; Explanation &ndash; For the purpose of this  section , terms &ldquo; electronic mail&rdquo; and &ldquo; Electronic message&rdquo;&nbsp; means a message or information created or  transmitted or received on a computer, computer system, computer resource or  communication device including attachments in text, image, audio, video and any  other electronic record which may be transmitted with the message&rdquo; <\/p>\n<p>It is  pertinent to mention that the Finance Act, 2016 introduced clause (23C) to  section 2 of the Act to define &quot;hearing&quot; and the same includes  communication of data and documents through electronic mode.<\/p>\n<p>Reference  is drawn to the decision of the Hon&rsquo;ble Supreme Court in the case of <strong><em>Suo  Moto WP No. 3 of 2020 July 10, 2020 (SC)<\/em><\/strong> wherein it was held that two  blue ticks on a legal notice or summon sent via WhatsApp would legally  demonstrate under the Indian Evidence Act that the intended recipient has seen  the document.<\/p>\n<p>The  Hon&rsquo;ble High Court of Bombay in the case of <strong><em>Kross Television India Pvt  Ltd vs. Vikhyat Chitra Production dated March 23, 2017 Suit (L) No. 162 of 2017  (Bom) (HC)<\/em><\/strong>held that the purpose of service is put the other party to  notice and to give him a copy of the papers. The mode is irrelevant. The rules  and procedure are not so ancient or rigid that only antiquated methods of  service through a bailiff or by beat of drum is acceptable. E-Mail &amp;  Whatsapp are not formally approved but if service is shown to be effected and  is acknowledged it cannot be said that the Defendants had &lsquo;no notice&rsquo;.  Defendants who avoid and evade service by regular modes cannot be permitted to  take advantage of that evasion.<\/p>\n<p><strong>7.3.  Authentication of electronic record [<\/strong><strong>Para<\/strong><strong> 10 of  the Scheme]<\/strong><\/p>\n<p>An  electronic record shall be authenticated by the NFAC by affixing its digital  signature. The appellant or any other person, by affixing his digital signature  if he is required under the Rules to furnish his return of income under digital  signature, and in any other case by affixing his digital signature or under  electronic verification code. &ldquo;Electronic verification code&rdquo; shall have the  same meaning as referred to in rule 12 of the Rules.<\/p>\n<p><strong>Part III &ndash; Challenges<\/strong><\/p>\n<p><strong>1.  Constitutional Validity &ndash; Natural Justice<\/strong><\/p>\n<p>The Hon&rsquo;ble  Delhi High Court in the case of&nbsp;<a href=\"https:\/\/itatonline.org\/articles_new\/lakshya-budhiraja-uoi\/#blurbdl\"><strong><em>Lakshya  Budhiraja v. UOI &amp; Anr<\/em><\/strong><\/a><strong><em>. W.P.(C) 8044 of 2020 (Del) (HC) <\/em><\/strong>has  issued notice on October 16, 2020, on the grounds of the Petitioner that the  mechanism where the approval of the Chief Commissioner or the Director General  of Income-tax is required for video conference facility is discriminatory in  nature and is against the settled principles of law and in violation of the  Article 14 of the Constitution of India, as it gives them the discretion to  deny the same and that no person should be judged without a fair hearing in which  each party is given an opportunity to respond to the evidence against them. <\/p>\n<p>Similarly,  the Hon&rsquo;ble Orrisa High Court in the case of&nbsp;<a href=\"https:\/\/itatonline.org\/info\/wp-content\/uploads\/2021\/03\/CTBA-OHC-ORDER-FACELESS-APPEAL-SCHEME.pdf\"><strong><em>Cuttack  Tax Bar Association v. UOI W.P.(C) No. 33457 of 2020 dated March 09, 2021<\/em><\/strong><\/a>has  challenged the Central Government Notification for Faceless Appeal on various  grounds. The matter is admitted.&nbsp; <\/p>\n<p><strong>2. Natural Justice &ndash; Right to inspect records<\/strong><\/p>\n<p>In the case of <strong><em>Suraj Mall Mohta and Co. v. A. V.  Viswanatha Sastry (1954) 26 ITR 1 (SC)<\/em><\/strong>, the Hon&rsquo;ble Supreme Court has  ruled that assessment proceedings before the Income-tax Officer are judicial  proceedings and all the incidents of such judicial proceedings have to be  observed before the result is arrived at. The assessee has a right to inspect  the record and all relevant documents before he is called upon to lead evidence  in rebuttal. This right has not been taken away by any express provision of the  Income-tax Act. The Supreme Court in the case <strong><em>Suresh Chandra Nanhorya v.  Rajendra Rajak &amp; Ors. (2006) 7 SCC 800 (SC)<\/em><\/strong> held that Natural  justice is an inseparable ingredient of fairness and reasonableness. It is even  said that the principles of natural justice must be read into unoccupied  interstices of the statute unless there is a clear mandate to the contrary. <\/p>\n<p>Accordingly, the Authorities are bound to follow the  principle of natural justice while deciding the appeal though under the  faceless scheme.<\/p>\n<p><strong>3. Natural Justice &#8211; Speaking  order<\/strong><strong> <\/strong><\/p>\n<p>As per  section 250(6) of the Act it is the duty of the Commissioner (Appeals) to state  point in dispute, record the reasons and pass a speaking order.<\/p>\n<p>The Hon&rsquo;ble  Supreme  Court inthe case of<strong><em>Kranti Associates Pvt. Ltd. v. Masood Ahmed Khan  (2010) 9 SCC 496 <\/em><\/strong>and<strong><em> Canara Bank v. V. K. Awasthy (2005) SC 2090 <\/em><\/strong>has  held that non speaking orders by Tribunal as well as Commissioner (Appeals) is  violate the principle of natural justice and liable to be set aside.<\/p>\n<p>Accordingly, under the faceless appeal scheme the Authorities are bound  to pass the speaking order.<\/p>\n<p><strong>4. Applicability of  Jurisdictional Precedents<\/strong><\/p>\n<p>As per  the Article 227 of the Constitution of India, every High Court shall have<br \/>\n  superintendence  over all courts and Tribunals throughout the territories in relation towhich it  exercises jurisdiction. The Hon&rsquo;ble Supreme Court in the case of <strong><em>East  India Commercial Co Ltd v. Collector of Customs, AIR 1962 SC 1893<\/em><\/strong>held  that the law declared by the highest court in the State is binding  onauthorities or Tribunals under its superintendence and they cannot ignore it  either ininitiating a proceeding or deciding on the rights involved in such a  proceeding. Therefore, where the action of the authority is contrary to the law  laid down by the High Court would be invalidand the proceedings themselves  would be without jurisdiction.<\/p>\n<p>Similarly,  the AU is bound by the decision of the Tribunal which has jurisdiction over the  appellant. <\/p>\n<p>Therefore,  irrespective of dynamic jurisdiction, the judicial precedents applicable to the  appellant should be applied by the AU on an appellant to appellant basis.<\/p>\n<p><strong>5. Compromising the  independence and judicial autonomy &#8211; Review of Draft Order<\/strong><\/p>\n<p>The  Hon&rsquo;ble Bombay High Court had quashed this offending part of the central action  plan in order to preserve the independence of the Commissioner of Income Tax  (appeals) in the case of&nbsp;<strong><em>Chamber of Tax Consultants v. CBDT [2019]  416 ITR 21 (Bom)(HC)<\/em><\/strong><\/p>\n<p>The  review of draft order by another AU is compromising of the quasi juridical  functions of the Commissioner (Appeals) <\/p>\n<p><strong>6. Clarification on<em> Ex-parte<\/em> Orders &#8211; To be passed on merit<\/strong><\/p>\n<p>The  scheme does not envisage an incidence of <em>ex-parte<\/em> hearing. The Hon&rsquo;ble  High Court of Bombay in the case of <strong><em>CIT v. Premkumar Arjundas Luthra  (HUF) [2017] 297 CTR 614 (Bom) (HC)&nbsp; <\/em><\/strong>held  that Commissioner (Appeals) is required to apply his mind to all issues which  arise from impugned order before him whether or not same had been raised by  appellant before him. The law does not empower Commissioner (Appeals) to  dismiss appeal for non-prosecution.<\/p>\n<p><strong>7.  Fragmentation of Quasi-Judicial Powers &ndash; Power to Stay Demand<\/strong><\/p>\n<p>The  decision of the Hon&rsquo;ble Bombay High Court in case of <strong><em>UTI<\/em><\/strong><strong><em> Mutual Fund v. Income-tax  Officer [2012] 345 ITR 71 (Bom)(HC) ,&nbsp;KEC International Ltd. v. B.R.  Balakrishnan and others 251 ITR 158 (Bom) (HC), <\/em><\/strong>and <strong><em>Coca Cola India P.  Ltd. vs. ACIT (2006) 285 ITR 419 (Bom) (HC) <\/em><\/strong>have held that&nbsp; that there is no memorandum or legislative  sanction mandating a pre deposit of 20 percent of the demand for a stay on  demand and directed the Department to follow the guidelines prescribed in these  decisions viz. Merit of the case, financial position of the appellant, high  pitch assessment etc.<\/p>\n<p>Evaluation  of these parameters were the function of the Commissioner (Appeals) before whom  the appeal is pending. Now, the Scheme has not envisaged the provisions  pertaining to a stay of demand. This creates a fragmentation of functions and  also does not uphold the spirit of faceless appeals.<\/p>\n<p><strong>8.  No specific provision for Early hearing<\/strong><\/p>\n<p>The  Scheme has not laid down any procedure for an appellant to apply for an early  hearing. However, the Commissioner (Appeals) has the inherent power to give an  early hearing due to urgency of the matter. In an appropriate case the appellant  can make an application for an early hearing of the appeal. In case the  application is rejected or not responded the appellant can approach the High  Court by filing Writ Petition. It is desired that the CBDT throws some  clarification with respect to an application for early hearing vis-&agrave;-vis the  Scheme.<\/p>\n<p><strong>9. Clarification on signing  authority <\/strong><\/p>\n<p>The  Scheme states that NFAC will pass the final appeal order and communicate such  order to: the Appellant, the Principal Chief Commissioner or Chief Commissioner  or Principal Commissioner or Commissioner as per section 250(7) of the Act; and  NeAC or AO for such action as may be required under the Act.<\/p>\n<p>The  Scheme is silent about the signing authority of the Order. Ideally, the same  should be done by the Commissioner having jurisdiction over the appellant.<\/p>\n<p><strong>10. Clarification on sanction  for initiation of Prosecution<\/strong><\/p>\n<p>Section  279 of the Act deals with power to sanction the prosecution. Section 279(1) of  the Act also refers to the Commissioner (Appeals) as a sanctioning authority.The  Income-tax department&rsquo;s manual deals with various guidelines to be followed  before launching prosecution proceedings. According to the same,&nbsp;The  Assessing Officer based on the records of the assessee sends the proposal to  the respective Commissioner.The Commissioner issues the show cause notice to  the assessees.If Commissioner is satisfied with the reply of the assessee he  may not grant sanction to the Assessing Officer to file complaint before the  Court, and vice versa. <\/p>\n<p>There  is no clarity with respect to the powers of the AU or NFAC to issue a Notice to  the assessee on the basis of reasons recorded by the assessment unit or NeAC.<\/p>\n<p>Further,  when a matter is contested before the Magistrate Court the accused may request  for summoning of witness i.e. who has launched the prosecution. Under  thefaceless assessment\/appeals scheme, it is still unclear how the provisions  of Code of Criminal Procedure,1973, will be complied with. The Board needs to  provide some clarity on this subject as the traditional hierarchy is no longer  in place. &nbsp;<\/p>\n<p><strong>11. Lack of opportunity for  representation &ndash; Additional ground &amp; Additional evidence<\/strong><\/p>\n<p>The  report of NeAC or AO on the admissibility or rejection of additional  ground\/evidence is to be shared with NFAC and with appeal Unit. Only after  receipt of such report, appeal unit may admit or reject the additional  evidence\/ additional grounds furnished\/filed before it.<\/p>\n<p>There  is no provision for the Appellant or its representative to rebut the adverse  report if any made by the NeAC or AO. This is a violation of principles of  Natural justice, <em>Audi Alteram Partem<\/em> i.e. no person should be judged  without a fair hearing in which each party is given the opportunity to respond  to the evidence against them.<\/p>\n<p>While  drafting the grounds of appeal and statement of facts, the appellant may have  to take an extra precaution. When an appeal is before the Appellate Tribunal or  the High Court, it is the grounds of appeal and statement facts which are  considered as primary records. <\/p>\n<p>Further,  when a matter is taken in appeal the appellant cannot produce any new evidence  without making an application for admission of additional evidence. Therefore,  it is important that a proper paper book is filled with detailed submission,this  will help the appellant for better representation before the Higher  authorities. Drafting skill is very important for effective submissions before  the Commissioner (Appeals)\/ AU.<\/p>\n<p><strong>Part IV &ndash; Check List<\/strong><\/p>\n<p>The following is a brief checklist on how to approach the  CIT(A)\/ NFAC<\/p>\n<p><strong>1.  Existence of a Draft Order<\/strong><strong> <\/strong><\/p>\n<p>At the  first instance it needs to be checked whether the NeAC\/Ld. AO has issued a  draft Assessment Order or not. In the event there is no draft assessment order  the same is in violation of the procedure laid downas per section 143(3A) of the Act read  with clause 5 of<strong><em>CBDT  Notification No. 60 of 2020 dated August 13, 2020 (2020) 426 ITR 18 (St)<\/em><\/strong><strong>.<\/strong><strong> <\/strong><\/p>\n<p>A  specific ground needs to be raised where there is a violation of due process of  law.<\/p>\n<p><strong>2.  Response to Penalty Notice<\/strong><strong> <\/strong><\/p>\n<p>A  penalty proceeding would have been initiated in the Order passed by the Ld.  AO\/NeAC. It is important that the Notice is responded on merits and without  prejudice to the merits it must be prayed to keep the penalty in abeyance till  the disposal of the appeal before the Ld. CIT(A)\/ NFAC.<\/p>\n<p><strong>3.  Statement of Facts <\/strong><strong> <\/strong><\/p>\n<p>The following points must be kept in mind while  drafting the Statement of Facts:<\/p>\n<p>(i)  The same should be  comprehensive and complete&#894; <\/p>\n<p>(ii)  Statement  of Facts must be used as an opportunity to bring additional facts on record if  the same could not be brought before the Assessing Officer&#894; <\/p>\n<p>(iii)  All  factual mistakes\/ errors\/ incorrect observations of Assessing Officer must be  specifically mentioned, challenged and rebutted. This would include instances  where the Assessing Officer has wrongly stated in the assessment order that  certain details were called for and not submitted. Wherever possible, the correct  position should be expressly mentioned&#894; <\/p>\n<p>(iv)  Issues  such as lack of proper opportunity of being heard or violation of any other  principle of natural justice (such as denial of opportunity of cross  examination, relying on material behind assessee&rsquo;s back etc.) must be  specifically brought out. This will also help the assessee&rsquo;s case for admission  of additional evidence under Rule 46A. <\/p>\n<p>(v)  In case, the Ld. AO\/NeAC has  not taken in to consideration the case laws cited by the assessee the same may  be stated in the statement of facts. <\/p>\n<p><strong>4.  Grounds of Appeal<\/strong><strong> <\/strong><\/p>\n<p>The  following points must be kept in mind while drafting the Grounds of Appeal:<\/p>\n<p>(i) Separate ground for each addition\/  issue must be taken&#894;<\/p>\n<p>(ii) The grounds should highlight all  controversies involved in the appeal&#894;<\/p>\n<p>(iii) They should not be vague or general  in nature&#894;<\/p>\n<p>(iv) Issues such as lack of proper  opportunity of being heard or violation of any other principle of natural  justice must be specifically taken in the Grounds of Appeal&#894;<\/p>\n<p>(v) Statement of facts should not be mixed  with Grounds of Appeal&#894;<\/p>\n<p>(vi) Alternative plea\/ without prejudice  grounds must be taken, where the circumstances so require;<\/p>\n<p>(vii) Errors, if any, in computation of tax  and interest in the Tax Computation Form of AO must be specifically taken in  the grounds&#894;<\/p>\n<p>(viii) A prayer to add, amend, alter or  withdraw any ground must be made in the end.<\/p>\n<p><strong>5.  Submissions before the NFAC <\/strong><strong> <\/strong><\/p>\n<p><em>Firstly, <\/em>it is  important that all submissions via the portal to be ideally made as partial  submission so that if the taxpayer wishes to make any additional submission on  account of any subsequent change in the law in light of judicial pronouncements  or otherwise.<\/p>\n<p>Unlike  the hearing before the Appellate Tribunal which takes place in an open Court  room open for the general public, hearing of appeals before the Commissioner  (Appeals) is not open to the general public. Though the Assessing Officers have  a right to be heard, they seldom enter appearance. In the Appellate Tribunal,  due to the nature of proceedings, submissions made across the bar are given  more importance than any written submissions\/ note, it is the opposite before  the Commissioner (Appeals). <\/p>\n<p>The following points must be kept in mind while drafting the written  submissions:<\/p>\n<p>(i) Written submissions must be made in respect of each ground of  appeal. Two or more grounds of appeal may be clubbed if the circumstances so  require.<\/p>\n<p>(ii) All critical facts stated in the Statement of Facts must find  reference in the written submissions, at the cost of repetition.<\/p>\n<p>(iii) The Commissioner (Appeals) is essentially a fact-finding  authority. Therefore, the written submissions must make exhaustive reference to  the facts of the case. <\/p>\n<p>(iv) While referring to the paper books, page number of the paper book  must be referred mentioned, for ease.<\/p>\n<p>(v) The judicial precedents that the assessee relies on must be referred  in the written submissions along with a brief summary of the ratio of the case,  the relevant para in the said judgements must be referred and said judgements must  be filed in the paper book. <\/p>\n<p>(vi) It may be desirable to refer Judgement of Supreme Court or  Jurisdictional High Court or Jurisdictional Tribunal. <\/p>\n<p>(vii) All factual errors committed by the Assessing Officer must be  specifically set out in the written submissions along with the correct  position.<\/p>\n<p>(viii) Any errors committed by the Assessing Officer in drawing legal  conclusions must be specifically mentioned along with the grounds for the  error.<\/p>\n<p>(ix) Admissions, if any, by the Assessing Officer favourable to the case  of the assessee must be specifically brought out.&nbsp; <\/p>\n<p>(x) A paragraph wise submission in respect of the assessment order or at  least the critical portions thereof must be made.<\/p>\n<p>(xi) If the Assessing Officer has relied on judicial precedents that are  not applicable to the facts of the case, the same must be mentioned and  distinguished.&nbsp; <\/p>\n<p>(xii) The importance of use of clear, precise and simple language cannot  be stressed enough.<\/p>\n<p><strong>Preparing  a paper book<\/strong> &#8211; The following points must be kept in mind while preparing a paper book to be  filed before the Commissioner (Appeals):<\/p>\n<p>(i) All  documents\/ material that the assessee seeks to rely upon should be filed in the  paper book.<\/p>\n<p>(ii) Any additional evidence that the  assessee seeks to file should be filed in a separate paper book.<\/p>\n<p>(iii) The paper books (including paper book  of additional evidence) should be paginated and numbered consecutively. Running  page numbers should be given in all paper books for ease.<\/p>\n<p>(iv) It is a good practice to file a  separate paper book for judgements\/ legal material that the assessee relies on.<\/p>\n<p>(v) Each paper book must contain an index  for ease with page numbering.<\/p>\n<p>(vi) The paper book containing documents  which were filed before the Assessing Officer should contain a statement from  the assessee or someone authorised by the assessee in this behalf that all the  documents in that paper book are on record before the Assessing Officer.<\/p>\n<p><strong>6. Seeking adjournments<\/strong> <\/p>\n<p>Whenever an assessee or its Authorised Representative seek an  adjournment on a scheduled date of hearing, attempt must be made to communicate  the same by filing an adjournment application in writing. This will reduce the  chances of the Commissioner (Appeals) proceeding <em>ex-parte <\/em>in disposing of the appeal. The filing of a formal  adjournment application will also come to an assessee&rsquo;s aid should the  Commissioner (Appeals) decide to proceed <em>ex-parte<\/em>.  The adjournment application should be short, precise and prepared in simple  language stating clearly the ground on which the adjournment is sought.&nbsp; <\/p>\n<p><strong>Part V &ndash; <em>D&eacute;nouement<\/em><\/strong><\/p>\n<p>The  Scheme is at its initial stage, in the months ahead lot more problems and  issues will unearth. We appreciate the efforts of the Department in attending  various webinars and explaining the Scheme to the stakeholders. We are sanguine  that this approach of the department will help the scheme prevail through the  challenges that will be posed before it in the times to come. <\/p>\n<p>Reiterating,  as mentioned earlier, the Scheme is a game changer and has challenged the <em>status  quo <\/em>of the proceedings before the First Appellate Authority for good. These  changes will benefit taxpayers and stakeholders greatly in the times to come. <\/p>\n<div class=\"journal2\">\n<p><strong>Reproduced with permission from<\/strong> the 23rdNational Convention (Souvenir) of  AIFTP held on 5th and 6th   December, 2020, page No 77.<\/p>\n<\/div>\n<table width=\"103%\" border=\"1\" cellpadding=\"5\" cellspacing=\"0\" bgcolor=\"#FFFFCC\">\n<tr>\n<td><strong>Disclaimer: <\/strong>The  contents of this document are solely for informational purpose. It does not  constitute professional advice or a formal recommendation. While due care has  been taken in preparing this document, the existence of mistakes and omissions  herein is not ruled out. Neither the author nor itatonline.org and its  affiliates accepts any liabilities for any loss or damage of any kind arising  out of any inaccurate or incomplete information in this document nor for any  actions taken in reliance thereon. No part of this document should be  distributed or copied (except for personal, non-commercial use) without  express written permission of itatonline.org<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Dr. K. Shivaram, Senior  Advocate, and Mr. Shashi Bekal, Advocate, have explained in meticulous detail the entire law and practice relating to the newly introduced scheme of &#8216;Faceless Appeals&#8217;. The learned authors have also offered valuable suggestions on how the scheme can be improved. They have also prepared a check-list which will enable taxpayers and professionals to derive maximum advantage from the scheme<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/articles_new\/faceless-appeal-improving-transparency-in-taxation-a-practical-guide\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-8929","post","type-post","status-publish","format-standard","hentry","category-articles"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts\/8929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/comments?post=8929"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts\/8929\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/media?parent=8929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/categories?post=8929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/tags?post=8929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}