Eight months since its roll-out, the faceless evaluation mechanism has proved to be successful for the revenue tax division, with 1.06 lakh instances being disposed off to this point in a ‘glitch-free method,’ stated Central Board of Direct Taxes’ Chairman P C Mody, in an interview with Enterprise Customary. He added that the sleek functioning has addressed trade apprehensions associated to a rise in litigation and high-pitch evaluation. A vital side of the faceless scheme is a pointed questionnaire by the division and a to-the-point reply by the assesse, he defined.
Of the 57,985 instances picked for evaluation throughout its pilot final 12 months, orders have been handed in 46,822 instances. Of the 1.36 lakh new instances picked up because the launch of the scheme on August 13, the evaluation has been accomplished for 59,552 instances to this point.
The Centre launched the faceless scheme final 12 months, which included provisions for faceless evaluation, faceless appeals, and faceless penalties, to be able to eradicate the bodily interface between taxpayers and tax authorities and put off territorial jurisdiction. Actually, the Finance Act, 2021 has supplied for a faceless Revenue Tax Appellate Tribunal, which is able to come into impact this 12 months.
“The theme is honouring the sincere. The main focus of the division is to supply good taxpayers companies by being honest and clear, and resolving disputes and assessments inside a given timeframe,” stated Mody.
Nonetheless, the faceless appeals course of was off to a sluggish begin, with solely 14,743 orders handed to this point, as in opposition to 4.12 lakh appeals instances. Actually, of the full orders handed, 11,322 pertain to the Vivad se Vishwas scheme withdrawal orders, and solely 3,421 orders have been handed in common attraction instances. Nonetheless, Mody defined that whereas the faceless appeals scheme was launched on September 25 final 12 months, orders might solely begin getting handed from January 2021.
“Finalising the functionalities for appeals and project of instances took time. The scheme needed to be drafted, information needed to be uploaded, then random allocation needed to be made and officers needed to be relocated…precise orders began getting handed from January,” stated Mody. He additional defined that one other concern was on account of orders being guide until 2016. “All these guide orders and paperwork needed to be uploaded,” stated Mody.