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  |
- ITAT allows exemption of Rs. 25 lakhs u/s 10(10A) to non-government employees
- PCIT has revisionary jurisdiction u/s 263 over the cases passed by the NFAC or the JAO
- Appellate court interfering with MACT finding must undertake reappreciation of evidence
- When delay is not huge & involves huge monetary liability, lenient approach to be taken
- EoGM of company can not ratify diversion of fund raised by preferential issue – SC
