Comparison between present income tax assessment and faceless assessment
Current vs Faceless Assessment
| Present Assessment System | Faceless Assessment System |
| Case selection through system, Manual & Tax evasion information |
1. No discretion to any officer in selection 2. No selection except through system red alerts 3. No selection other than information based |
| Single territorial jurisdiction |
Automated random allocation of cases |
| Issue of notices both manually and on system |
Notices to be issued electronically and centrally from the NeAC (Single point of faceless contact) |
| Physical meetings between the taxpayer and the officers |
No physical meeting with any officer |
| Wide discussion with officers leads to subjective approach and varying interpretions |
1. Team based assessment 2. Draft in one city, review in another city, finalisation in third city 3. Objective, fair and just order  |
- Under POCM, selling/Admin costs allowable despite no revenue declared – ITAT
- AO can’t use reverse computation using TDS amount for disallowance u/s 40(a)(ia)
- Once loans is repaid in subsequent years, addition u/s 68 cannot be made
- Viksit Bharat Guarantee for Rozgar & Ajeevika Mission-Gramin “VB-GRAM-G” notified
- In denovo assessment , AO to apply independent mind without influenced by remarks
