The CBDT has notified Faceless Penalty Scheme, 2021 vide Notification No. 2/2021 dated January 12, 2021 and Directions vide Notification No. 3/2021 dated January 12, 2021. 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.
This scheme shall be effective from 12/01/2021.
Under the scheme, a National Faceless Penalty Centre and various regional units will be set up. This centre will allocate a recommendation for penalty made under the faceless assessment initiative to its regional units which can confirm or reject the penalty. The national centre can also refer the recommendation from its penalty unit for review and modification by another unit before finally passing an order in the case confirming or dropping penalty, as per an official order.
All the communication between the penalty units and penalty review units and the assessee or any income tax authority or any other person shall be through the National Faceless Assessment Centre exchanged exclusively by electronic mode.
The assessee shall not be required to appear either personally or through authorised representative in connection with any proceedings under this Scheme before the income-tax authority at the National Faceless Penalty Centre or Regional Faceless Penalty Centre or penalty unit or penalty review unit set up under this Scheme. However, the assessee, his authorised representative, may request for personal hearing so as to make his oral submissions or present his case before the penalty unit under this Scheme.
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