CBDT vide its Order dated 20.01.2021 has directed that under the Faceless Penalty Scheme, 2021, the National Faceless Assessment Centre /Regional Faceless Assessment Centre/ Assessment Unit/ Review Unit to act as the National Faceless Penalty Centre /Regional Faceless Penalty Centre/ Penalty Unit/ Penalty Review Unit until they are set-up by the Board.
This Order is issued under Para 4 of the Faceless Penalty Scheme, 2021 notified by the CBDT on 12.01.2021 vide Notification No. 02 /2021/F.No.370142/51/2020-TPL.
Para 4(4) of the Faceless Penalty Scheme, 2021 states that for the purposes of this Scheme shall, until the date on which the National Faceless Penalty Centre or the Regional Faceless Penalty Centres, the penalty units or the penalty review units are set up, the National Faceless Assessment Centre (NeAC oe NFAC), Regional Faceless Assessment Centre, assessment unit and review unit to act as the National Faceless Penalty Centre, Regional Faceless Penalty Centre, the penalty unit and the penalty review unit, respectively. The relevant para 4 reads as follows-
“(4) The Board for the purposes of this Scheme shall, until the date on which the National Faceless Penalty Centre or the Regional Faceless Penalty Centres, the penalty units or the penalty review units are set up, direct the National Faceless Assessment Centre, Regional Faceless Assessment Centre, assessment unit and review unit to also act as the National Faceless Penalty Centre, Regional Faceless Penalty Centre, the penalty unit and the penalty review unit, respectively.”
The announcement of faceless penalty was made by the Finance Minister Nirmala Sitaraman while presenting the Union Budget 2020 on February 1, 2020. Finance Bill, 2020 proposed to enable the Central Government to notify the scheme for levying penalty in a faceless manner.
The objective of introducing the faceless penalty is to eliminate the physical interface between the taxpayers and the income tax authorities. This will help in curbing corruption and the arms twisting tactics by the department.
Appropriate amendments have been carried out in the Income Tax Act, 1961. An amendment is proposed in section 274 to insert a new sub-section (2A) to provide for the e-penalty scheme to be notified by the Central Government.
Section 274 of the Act provides for the procedure for imposing a penalty under Chapter XXI of the Act. In response to a show-cause notice issued by the Assessing Officer (AO), assessee or his authorised representative is still required to visit the office of the Assessing Officer.
With the advent of the Faceless Assessment Scheme,-2019 and in order to ensure that the reforms initiated by the Department to eliminate human interface from the system reaches the next level, it is imperative that an e-penalty scheme be launched on the lines of Faceless Assessment Scheme,-2019.
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Read the full text of the Order Dated 20.01.2021 directing NeAC to Act as National Faceless Penalty Centre
F No. 187/4/2021-ITA-I
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
*****
North Block, New Delhi - 110001.
Dated the 20 January, 2021
ORDER
Subject: Order under Para 4 of the Faceless Penalty Scheme, 2021 for directing the National Faceless Assessment Centre /Regional Faceless Assessment Centre/ Assessment Unit/ Review Unit to act as the National Faceless Penalty Centre /Regional Faceless Penalty Centre/ Penalty Unit/ Penalty Review Unit under the Scheme - regarding.
In pursuance to sub-para 4 of Para 4 of the Faceless Penalty Scheme, 2021 (the Scheme), the Central Board of Direct Taxes (hereinafter referred to as Board) hereby directs that, until the date on which National Faceless Penalty Centre /Regional Faceless Penalty Centres/ Penalty Units/ Penalty Review Units under the Scheme are set up, the National Faceless Assessment Centre / Regional Faceless Assessment Centres/ Assessment Units/ Review Units (read as NeAC/ ReACs/ AUs/ RUs), set up under the Faceless Assessment Scheme, 2019 will also act as the National Faceless Penalty Centre /Regional Faceless Penalty Centre/ Penalty Unit/ Penalty Review Unit respectively.
2. The Income-tax Authorities of the NeAC/ReAC/AUs/RUs i.e. Pr.CCIT/CCIT/Pr.CIT/CIT/Addl.CIT/Jt.CIT/DCIT/ACIT/ITO shall act as and perform the functions of the corresponding Income-tax authorities of the National Faceless Penalty Centre/ Regional Faceless Penalty Centers/ Penalty Units/ Penalty Review Units respectively.
3. This order shall come into force with immediate effect.
4. The Hindi version of this order shall follow.
(Gulzar Ahmad Wani)
JCIT (OSD), ITA-1
Download Copy of CBDT’s Order Dated 20.01.2021 on the direction that NeAC to Act as National Faceless Penalty Centre in pdf format
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