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CBDT Order assigning Penalty Cases to National Faceless Penalty Centre under Faceless Penalty Scheme, 2021

cbdt-order-assigning-penalty-cases-to-national-faceless-penalty-centre-under-faceless-penalty-scheme-2021

CBDT vide its Order dated 20.01.2021 has directed that all the penalty cases, pending as well initiated subsequently, is assigned to the National Faceless Penalty Centre (NFPC) to be disposed by the National Faceless Assessment Centre (NeAC) in accordance with Faceless Penalty Scheme, 2021. 


However, penalty cases assigned to Central Charges, International Tax Charges and TDS charges are excluded from being assigned to National Faceless Penalty Centre.


This Order is issued under Para 3 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 3 of the Faceless Penalty Scheme, 2021 empowers CBDT to specify the territorial area, or persons or class of persons, or income or class of income or cases or class of cases, or penalties or class of penalties where penalty under this Scheme shall be imposed. The relevant para 4 reads as follows-


The penalty under this Scheme shall be imposed in respect of such territorial area, or persons or class of persons, or income or class of income or cases or class of cases, or penalties or class of penalties as may be specified by the Board.


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 assigning all the Penalty Cases to NFPC


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 3 of the Faceless Penalty Scheme, 2021, for assignment and disposal of penalty cases under the scheme- regarding. 

 

The Central Board of Direct Taxes in exercise of powers conferred under Para 3 of the Faceless Penalty Scheme, 2021 hereby directs that all the penalty cases initiated under the Income-tax Act, 1961, pending as well initiated subsequently, is assigned to the National Faceless Penalty Centre to be disposed by the National Faceless Assessment Centre (read as NeAC) in accordance with order under para 4 of the Scheme, dated 20.01.2021 (F.No 187/3/2020-ITA-I), except provided as hereunder:- 


i) Penalty proceedings in cases assigned to Central Charges; 

ii) Penalty proceedings in cases assigned to International Tax Charges; and 

iii) Penalty proceedings arising in TDS charges. 


2. This order shall come into force with immediate effect. 


3. 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 assignment of all the Penalty Cases to National Faceless Penalty Centre in pdf format


Read Also on Faceless Penalty Scheme, 2021

 

CBDT Notifies Income Tax Faceless Penalty Scheme, 2021

 

Full Text of Faceless Penalty Scheme, 2021

 

Directions for giving effect to Faceless Penalty Scheme, 2021

 

CBDT issues Directions for giving effect to Faceless Penalty Scheme, 2021

 

CBDT directs NeAC to Act as  National Faceless Penalty Centre



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