Over 7,000 I-T assessments disposed of in faceless scrutiny

The income-tax (I-T) department has disposed of 7,116 cases under the first phase of faceless assessment system without raising any demand for additional tax. The demand for additional tax was proposed to be made in 291 cases.

Sources said the grievances of over-pitched assessment or harassment of taxpayers and tax professionals had been almost eliminated.

In faceless assessment, all the communications with taxpayers are made electronically by a central cell in Delhi and the identity of all the assessing officers remains unknown to the taxpayers.

“The faceless assessment system has been a game changer in the arena of direct taxation. It has empowered the taxpayers and has, as a foremost mechanism, altered the facets and perception of overall tax administration in India,” said a source in the finance ministry.

The faceless assessment was launched on October 7, 2019. In the first phase, 58,319 cases were assigned for the assessment in an automated way randomly. These cases were kept away from the geographical jurisdiction of the case, based on computer algorithms.

The sources said earlier, during assessment proceedings in scrutiny cases, taxpayers or her tax professionals were required to make multiple visits to the income tax office. There were allegations and some incidences of discretion and subjective approach which often resulted in highpitched assessments.