Introduction to Faceless Assessment
Faceless Assessment represents a significant shift in the way tax assessments are conducted. It aims to eliminate human interaction in the assessment proceedings, thereby reducing the scope for corruption and bias. The introduction of Section 144B in the Income Tax Act marked the formalization of this approach.
Objectives of Faceless Assessment
The primary objectives of faceless assessment under Section 144B are:
- To enhance efficiency and transparency in the assessment process.
- To minimize human interaction and potential bias.
- To expedite the assessment process through automation.
- To ensure uniformity in the application of tax laws.
Scope of Sections 144B and 144C
Section 144B outlines the procedure for faceless assessment, while Section 144C deals with the reference to the Dispute Resolution Panel. Together, they provide a comprehensive framework for conducting assessments in a faceless manner.
Technology in Faceless Assessment
Automation and Allocation Systems
Section 144B emphasizes the use of automated allocation systems. The National Faceless Assessment Centre assigns cases to specific assessment units through an automated allocation system, as stated in Section 144B(1)(i).
Digital Communication and Notices
All communication, including the intimation to the assessee and service of notices, is digitalized. Section 144B(1)(ii) and (iii) provide for the intimation and notice to be served electronically.
Automated Examination Tools
The National Faceless Assessment Centre may examine the draft assessment order using automated examination tools, as mentioned in Section 144B(1)(xii).
Security and Confidentiality
The use of technology also ensures that the information handled is secure and confidential. The digital platform ensures that the encrypted data is accessible only to authorized personnel.
Chapter 1 provides an introduction, focusing on the integration of technology in the process. It outlines the background, objectives and scope, emphasizing the use of automation, digital communication, automated examination tools, and security measures. By reproducing relevant provisions of the law, this chapter offers a comprehensive understanding of the legal framework governing faceless assessment in the Income Tax Act.