To

The Chairman

Central Board of Direct Taxes

North Block

New Delhi

 

Subject: Representation regarding mechanical issuance of notices and non-consideration of responses under the Faceless Assessment and Faceless Appeal Schemes

 

Respected Sir/Madam,

 

This representation is being made to bring to the notice of the Board certain systemic and recurring issues being observed in the implementation of the Faceless Assessment Scheme and Faceless Appeal Scheme, which are affecting the efficacy and fairness of the process.

 

It has been noticed in a large number of cases that responses filed by assessees to show cause notices are not being meaningfully reviewed by the Assessing Officers or by the Commissioner (Appeals) under the faceless framework. Despite detailed replies supported by documentary evidence being uploaded within the stipulated time, fresh show cause notices are issued on the same issues, often reproducing earlier allegations verbatim, without addressing or dealing with the submissions already on record.

 

Further, in cases where video conferencing hearings are granted, it has been observed that the proceedings often continue without consideration of the written replies already filed in response to the show cause notice. In several instances, orders are passed shortly after the scheduled video conference, reflecting that the submissions made—both written and oral—have not been examined or appreciated. This creates a perception that the opportunity of hearing is being granted as a procedural formality rather than a substantive safeguard.

 

Such an approach dilutes the core objectives of the faceless regime, which was introduced to ensure fairness, transparency, accountability and reduction of arbitrary discretion. Mechanical issuance of notices and non-speaking consideration of replies not only defeats the principles of natural justice but also leads to avoidable litigation, remands and adverse judicial observations, thereby increasing administrative burden.

 

It is respectfully submitted that the faceless system, while technologically robust, requires greater supervisory checks and accountability mechanisms to ensure that officers meaningfully apply their mind to the material placed on record before issuing further notices or passing orders.

 

In this regard, it is humbly suggested that the Board may consider issuing appropriate administrative instructions or clarifications, inter alia, to ensure that:

            1.         Fresh notices are not issued on the same issue unless earlier replies are specifically examined and reasons for disagreement are recorded.

            2.         Orders passed under the faceless regime expressly demonstrate consideration of the assessee’s submissions and evidence.

            3.         Video conferencing hearings are conducted as a substantive hearing tool and not as a procedural formality.

            4.         Internal review or quality checks are strengthened to curb mechanical and repetitive actions.

 

The above measures would go a long way in reinforcing confidence in the faceless framework and aligning its implementation with the legislative intent and constitutional principles of fairness and natural justice.

 

We trust that the Board will consider this representation in the right spirit and take appropriate steps to address the concerns highlighted.

 

Thanking you,

 

Yours faithfully,