In the last few years, the tax department had introduced e-proceedings, faceless assessment and faceless appeal, to avoid incidences of harassment or other malpractices by the taxman.

The taxpayer’s physical presence would not be required in these online processes. Also, it helps avoid the hassles and costs associated with travel while side-stepping legacy problems such as non-receipt, delayed delivery of notice or inability to be present at hearings due to other emergencies.

Following faceless assessments appeals, the Budget has introduced ‘faceless’ procedures for the Income Tax Appellate Tribunal and a ‘faceless’ Dispute Resolution Committee for small taxpayers. The thrust is towards adopting a virtual digitised mechanism in place of in-person hearings for tax disputes. The measures are aimed at simplifying tax administration, ease compliance as well as reduce scope for harassment of assessees by the tax authorites.

Resolution of tax dispute

The Income Tax Appellate Tribunal shall not only be faceless but also jurisdiction-less. A National Faceless Income Tax Appellate Tribunal Centre shall be established. All communication between the Tribunal and the appellant shall be made electronically. Wherever personal hearing is needed, it shall be done through video-conferencing facility.

To further ease things for for small taxpayers, a faceless Dispute Resolution Committee will be set up., . Anyone with a taxable income up to ₹50 lakh and disputed income up to ₹10 lakh shall be eligible to approach the Committee.

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