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The income tax system in India has seen a major transformation with the introduction of the faceless assessment regime. This initiative by the Income Tax Department is designed to eliminate physical interaction between taxpayers and tax officers, making the entire assessment process electronic and more transparent. The faceless assessment process is conducted through the Income Tax e-Filing portal, aiming to simplify compliance and improve efficiency for taxpayers.

What is Faceless Assessment?

Faceless assessment refers to a fully digital method of conducting income tax assessments where there is no direct, physical interface between taxpayers and tax officials. All communications, including notices, questionnaires, and orders, are exchanged electronically via the official e-filing portal. This approach aims to promote transparency by reducing human discretion, minimize the scope for corruption, and ensure faster resolution of cases.

The faceless assessment mechanism was introduced under section 144B of the Income Tax Act, 1961. It is applicable to various types of assessments such as regular assessments under section 143(3), best judgment assessments under section 144, and reassessments or income escaping assessments under section 147. The process excludes certain cases like those involving Central Charges, such as searches or surveys, and international taxation matters like transfer pricing, which continue to follow their specific procedures.

The New Income Tax e-Filing Portal

On June 7, 2021, the Central Board of Direct Taxes (CBDT) launched a new income tax e-filing portal, replacing the older platform. The new portal, accessible, is designed to offer a modern, user-friendly interface and seamless experience for taxpayers. The revamped portal integrates various tax-related services, including return filing, refund tracking, and e-Proceedings for faceless assessments.

The redesign focuses on simplifying navigation, enhancing security, and providing easy access to all relevant tax-related communications. Users can register, file returns, respond to notices, and access their assessment history all in one place. The new portal supports multiple devices and browsers, ensuring that taxpayers can manage their tax obligations on the go.

Introduction to the e-Proceedings Utility

A significant feature of the new income tax portal is the introduction of the e-Proceedings utility. This facility allows taxpayers to participate in assessment proceedings fully online. Through e-Proceedings, all communications from the Income Tax Department, including assessment notices, questionnaires, and orders, are delivered electronically to the taxpayer’s registered account.

Taxpayers can submit their replies, upload supporting documents, and seek adjournments directly through the portal. This process eliminates the need to physically visit Income Tax Offices, saving valuable time and resources. The system operates 24/7, providing the flexibility to respond at any convenient time.

The e-Proceedings utility also improves accountability, as all submissions are time-stamped and securely stored, enabling a transparent record of the entire assessment process. Tax authorities can review responses and documents digitally, speeding up the finalization of assessments.

Benefits of the Faceless Assessment Regime

The faceless assessment system offers several advantages for taxpayers and the tax administration alike:

• Transparency: By minimizing personal interaction and centralizing the assessment process, the scope for biased decisions or influence is greatly reduced.

• Efficiency: Digital communication accelerates the assessment timeline, reduces administrative delays, and allows simultaneous processing of cases.

• Convenience: Taxpayers can receive notices and respond from any location without the need to visit tax offices physically.

• Environmental Friendliness: The paperless process contributes to sustainability by reducing the use of physical documents.

• Accountability: Digital tracking of all communications ensures that both taxpayers and tax officials remain accountable for their actions.

Prerequisites for Using the e-Proceedings Utility

To utilize the e-Proceedings facility on the new portal, taxpayers must meet certain prerequisites:

• Registered e-Filing Account: The taxpayer must have a registered account on the new income tax e-filing portal with valid PAN and password credentials.

• Valid Contact Details: Email address and mobile number must be correctly updated in the profile to receive timely notifications and alerts.

• Digital Readiness: Taxpayers should have access to a computer or smartphone with a reliable internet connection to log in and interact with the portal.

• Document Preparation: Relevant documents must be scanned and saved in accepted formats (PDF, JPEG, etc.) for upload during the assessment proceedings.

• Knowledge of Portal Navigation: Familiarity with the new portal’s interface is essential to efficiently access and respond to notices.

Types of e-Proceedings Conducted Facelessly

The faceless assessment process applies primarily to the following categories of proceedings:

• Regular Assessments under Section 143(3): These are routine scrutiny assessments where the assessing officer examines the income tax return filed by the taxpayer for correctness.

• Best Judgment Assessments under Section 144: This type of assessment is invoked when the taxpayer fails to file a return or does not respond to notices, compelling the assessing officer to estimate income based on available information.

• Reassessments or Income Escaping Assessments under Section 147: When the assessing officer has reason to believe that some income has escaped assessment, reassessment notices are issued under section 147 for the relevant assessment year.

Exceptions to faceless assessments include cases under Central Charges such as those related to searches or surveys, as well as international taxation matters involving transfer pricing, which follow dedicated procedures.

Legal Framework Supporting Faceless Assessment

Section 144B of the Income Tax Act provides the legal foundation for the faceless assessment regime. The section empowers the CBDT to prescribe the procedure for electronic assessments without any physical interface between taxpayers and officers. The legislation ensures that all communications are conducted digitally, promoting fairness and transparency.

The faceless assessment process involves multiple officers at different stages, such as case assignment, examination, review, and approval. This segregation of duties reduces the risk of bias or arbitrary decisions by ensuring that no single officer controls the entire process.

The process is administered by the National Faceless Assessment Centre (NaFAC), a centralized body that manages case allocation, communication, and coordination between various units involved in the assessment.

How the New Portal Supports Faceless Assessments

The new income tax e-filing portal incorporates advanced technology features to support faceless assessments:

• Centralized Communication Hub: The portal acts as a single point of communication where taxpayers receive all notices and orders electronically.

• User-Friendly Interface: Intuitive menus and clear navigation paths help taxpayers quickly locate their e-Proceedings and other pending actions.

• Secure Login and Authentication: Multi-factor authentication mechanisms protect taxpayer data and ensure secure access.

• Document Upload and Management: The system allows taxpayers to upload multiple documents, organize submissions, and track their status easily.

• Real-Time Notifications: Automated alerts notify taxpayers about new notices, deadlines, and responses required.

• Filter and Search Options: Taxpayers can filter notices by year, type, and status to manage multiple proceedings efficiently.

Overview of the Faceless Assessment Workflow

The faceless assessment process typically follows these steps:

• Issuance of Notice: The National Faceless Assessment Centre generates and issues electronic notices based on case selection through automated systems such as the Computer Aided Scrutiny Selection System (CASS).

• Accessing the Notice: Taxpayers log in to their e-filing account and navigate to the e-Proceedings section to view and download the notice.

• Submission of Response: Taxpayers prepare and upload responses along with supporting documents within the stipulated time frame.

• Assessment Review: Designated officers review the submissions digitally and may raise further queries or seek additional information.

• Finalization: Once the assessment is complete, the order is issued electronically and made available in the taxpayer’s e-filing account.

This end-to-end digital workflow ensures that every stage is documented and traceable, fostering accountability and speed.

Role of the Computer Aided Scrutiny Selection System (CASS)

The Computer Aided Scrutiny Selection System is an automated tool used to identify tax returns that require detailed examination. It employs data analytics and risk assessment models to select cases with discrepancies or potential non-compliance.

CASS plays a crucial role in faceless assessments by feeding selected cases directly to NaFAC for issuance of notices and initiation of electronic proceedings. This automation reduces human discretion in case selection, ensuring that only genuinely suspicious cases are scrutinized.

How Taxpayers Can Prepare for Faceless Assessments

Preparation is key to managing faceless assessments smoothly. Taxpayers should:

• Ensure their e-filing profile details, such as contact information, are up to date.

• Regularly check the ‘Pending Actions’ and ‘e-Proceedings’ sections on the portal to avoid missing notices.

• Keep digital copies of all relevant financial documents, receipts, and proofs ready for upload.

• Understand the timelines for responding to notices to prevent penalties for delays.

• Consider seeking professional advice if the assessment involves complex issues.

Accessibility and Support on the New Portal

The Income Tax Department has enhanced the new portal with several support features to assist taxpayers:

• Helpdesk and FAQs: A dedicated help section addresses common queries related to e-filing and faceless assessments.

• Video Tutorials: Step-by-step video guides demonstrate how to use various portal features, including e-Proceedings.

• Chat Support: Some versions of the portal offer live chat assistance to resolve technical difficulties.

• Mobile-Friendly Design: The portal is accessible via smartphones, allowing taxpayers to respond to notices on the move.

Faceless Assessment Initiative

The faceless assessment regime, supported by the new income tax e-filing portal and e-Proceedings utility, marks a significant step toward digital transformation in tax administration. By enabling electronic communication, simplifying processes, and enhancing transparency, this initiative benefits both taxpayers and tax authorities.

The transition to a paperless, interaction-free assessment environment aligns with the government’s broader goals of promoting ease of doing business and leveraging technology for governance reforms.

Practical Guide to Navigating Faceless Assessments under Section 143(3) Using the New e-Proceedings Utility

With the introduction of the faceless assessment regime, responding to scrutiny notices under section 143(3) has become a fully digital process. The new income tax e-filing portal integrates the e-Proceedings utility, enabling taxpayers to access, view, and respond to notices conveniently online. We focus on practical steps for taxpayers to manage faceless assessments under section 143(3) using the portal.

Logging into the Income Tax e-Filing Portal

The first step to managing any faceless assessment notice is to log into the income tax e-filing portal.

• Open a web browser and navigate .

• Click the ‘Login’ button at the top right corner of the homepage.

• Enter your User ID, which is your Permanent Account Number (PAN).

• Click ‘Continue’ and then enter your password.

• Complete any additional authentication such as OTP or captcha, if prompted.

• Upon successful login, you will be directed to your dashboard, which summarizes your profile, pending actions, and other key information.

Familiarity with the dashboard layout is essential for smooth navigation through e-Proceedings and other sections.

Accessing the e-Proceedings Tab

Once logged in, the next step is to access the e-Proceedings module where all faceless assessment communications are housed.

• On the dashboard, locate the ‘Pending Actions’ section.

• Within ‘Pending Actions’, click on the ‘e-Proceedings’ tab.

• This will open the ‘View e-Proceedings related to’ page, listing all ongoing and past assessment proceedings under different sections like 143(1)(a), 143(2), 147, 139(9), and 270A.

• You can use the filter options to narrow down the proceedings by assessment year or status (pending/closed).

This centralized page acts as the hub for managing all notices and submissions related to faceless assessments.

Understanding the Layout of e-Proceedings under Section 143(3)

The e-Proceedings screen is divided into several sections. For scrutiny assessments under section 143(3), you will find:

• A list of notices issued under section 143(2) or 142(1).

• Tabs to view responses, download notices, and seek adjournments.

• Details such as notice date, assessment year, and the relevant section.

Knowing the layout helps taxpayers quickly locate what they need and track the status of their proceedings.

Viewing and Downloading the Scrutiny Notice

Upon receiving a notice under section 143(3), it is crucial to view the details carefully and download a copy for record keeping.

• In the e-Proceedings window, under ‘Assessment Proceedings under section 143(3)’, click the ‘View Notices’ button.

• You will see a list of notices for the assessment year in question.

• Click on the ‘Notice/Letter Pdf’ tab to open the electronic notice.

• Review the notice carefully to understand the queries and scope of the assessment.

• To download, scroll to the bottom of the notice page and click the ‘Download’ button.

It is advisable to maintain a digital and physical copy of all notices for future reference and compliance.

Understanding the Contents of a Typical Notice under Section 143(3)

The scrutiny notice generated electronically by the National Faceless Assessment Centre includes the following key elements:

• PAN of the taxpayer.

• Address as per the income tax records.

• Reference to the relevant section under which the notice is issued.

• Assessment Year for which the assessment is being conducted.

• Notice number and date.

• Purpose of the notice and details of any questionnaires.

• List of documents or explanations sought.

Understanding these elements helps the taxpayer to respond accurately and avoid unnecessary delays or penalties.

Responding to Notices: Uploading Replies and Documents

Responding to a notice under section 143(3) requires submitting clarifications, explanations, and relevant documents electronically through the portal.

Step 1: Accessing the Response Section

• In the e-Proceedings tab, locate the notice for which you want to submit a response.

• Click the ‘View Response’ tab next to the notice.

Step 2: Preparing Your Response

• Draft a clear and concise reply addressing the queries raised in the notice.

• Ensure that the response answers all the questions and provides necessary clarifications.

• Organize supporting documents logically, and scan them in acceptable file formats like PDF or JPEG.

Step 3: Uploading the Response and Documents

• Click on ‘Upload Response’ or a similar button within the ‘View Response’ tab.

• Attach the response letter and all supporting documents.

• Review the attachments carefully to ensure that all pages are legible and correctly oriented.

• Submit the documents electronically.

Step 4: Confirming Submission

• After submission, the system generates an acknowledgment receipt with a unique reference number.

• Download and save this acknowledgment as proof of submission.

Timely and complete submission is vital to avoid penalty notices or adverse orders.

Seeking Adjournments in Faceless Assessments

In cases where more time is required to compile information or consult professionals, taxpayers can seek an adjournment.

• Within the ‘Assessment Proceedings under section 143(3)’ window, select the relevant notice.

• Click on the ‘Seek Adjournment’ tab.

• Provide a valid reason for requesting the adjournment in the text box.

• Submit the request.

The assessing officer reviews the adjournment request and communicates approval or denial electronically. It is important to request adjournments well before the deadline to prevent defaults.

Tracking Status and Updates on e-Proceedings

The portal provides real-time updates on the status of all faceless assessment proceedings.

• You can view whether a response has been received, queries raised, or assessment orders passed.

• Notifications alert taxpayers about new notices or deadlines.

• The ‘Filter’ option helps to track multiple proceedings simultaneously by sorting based on year or status.

Regularly checking the portal ensures that no communication is missed and deadlines are adhered to.

Common Challenges and Solutions When Using the e-Proceedings Utility

While the new portal streamlines the faceless assessment process, users sometimes encounter challenges.

Technical Glitches

Occasionally, users may face login issues, slow page loading, or document upload failures. Clearing browser cache, using recommended browsers, and stable internet connections generally resolve such issues.

Document Upload Errors

Files exceeding the prescribed size or unsupported formats may fail to upload. Compressing documents or converting to accepted formats like PDF helps.

Difficulty in Understanding Notices

Taxpayers unfamiliar with legal and accounting terminology might find notices complex. Consulting a professional or referring to online resources can clarify queries.

Time Management

Managing deadlines for multiple notices can be overwhelming. Setting personal reminders and checking the portal daily reduces the risk of missed responses.

Tips for Efficient Use of the Faceless Assessment Utility

To maximize the benefits of the e-Proceedings utility, taxpayers should:

• Keep login credentials confidential and change passwords periodically.

• Update contact details regularly to receive notifications without delay.

• Prepare responses well before deadlines to allow time for review.

• Maintain organized digital folders for storing notices, responses, and acknowledgments.

• Use the portal’s filter and search functions to manage multiple proceedings efficiently.

• Leverage helpdesk support and video tutorials provided on the portal.

Illustrative Example: Responding to a Scrutiny Notice Under Section 143(3)

Consider a taxpayer who receives a scrutiny notice raising queries about unexplained income and discrepancies in reported expenses.

• The taxpayer logs in to the portal and accesses the e-Proceedings tab.

• Under ‘Assessment Proceedings under section 143(3)’, the taxpayer downloads the notice.

• After carefully reviewing the questions, the taxpayer gathers relevant bank statements, bills, and contracts.

• A detailed response letter explaining the nature of the transactions is drafted.

• The response and supporting documents are scanned and uploaded through the ‘View Response’ tab.

• An acknowledgment is received and saved for records.

• The taxpayer monitors the portal for any further queries or the final assessment order.

This step-by-step approach helps ensure smooth and timely compliance with faceless assessment requirements.

Important Legal Provisions Affecting Faceless Assessments Under Section 143(3)

Several provisions of the Income Tax Act and associated rules govern faceless assessments:

• Section 143(3) empowers the assessing officer to conduct scrutiny assessments if the return requires detailed examination.

• Section 144B mandates faceless assessment proceedings, including issuance of notices and communication via the portal.

• The Income Tax (Procedure for Faceless Assessment) Rules, 2019, lay down detailed procedures for electronic communication, case allocation, and adjudication.

Understanding these provisions helps taxpayers comply effectively and defend their position when required.

Role of the National Faceless Assessment Centre (NaFAC) in Section 143(3) Proceedings

NaFAC acts as a centralized hub that coordinates faceless assessments. It selects cases based on automated systems and issues notices electronically. NaFAC also ensures allocation of cases to assessing officers in different geographic locations, thereby removing any jurisdictional bias.

The centre manages the entire communication flow, ensuring that taxpayers receive timely notices and can submit their responses on the portal. By segregating functions such as case preparation, review, and approval, NaFAC enhances the transparency and impartiality of assessments.

Security Features of the New e-Filing Portal

Given the sensitivity of personal financial information, the portal incorporates robust security measures:

• Multi-factor authentication prevents unauthorized access.

• Secure Socket Layer (SSL) encryption protects data transmissions.

• Regular audits and security updates ensure the system remains resilient against cyber threats.

Taxpayers are encouraged to use strong passwords and avoid accessing the portal over unsecured public networks.

Preparing for Future Assessments Using the e-Proceedings Utility

The faceless assessment regime is designed to be scalable and adaptable. Taxpayers should:

• Regularly monitor their e-filing accounts for any updates.

• Stay informed about procedural changes announced by the Income Tax Department.

• Maintain electronic records in a systematic manner for quick retrieval.

• Familiarize themselves with new features and updates on the portal.

By adopting these practices, taxpayers can reduce compliance risks and improve their readiness for faceless assessments.

Faceless Assessment Proceedings under Sections 144 and 147 Using the New e-Proceedings Utility

The faceless assessment mechanism revolutionizes the way reassessments and best judgment assessments are conducted, offering a seamless digital experience through the Income Tax Department’s revamped e-filing portal. We focus on practical steps, key considerations, and procedural insights for dealing with faceless assessments under sections 144 and 147 via the e-Proceedings utility.

Overview of Sections 144 and 147 in Faceless Assessments

Section 144 deals with best judgment assessments, typically invoked when the taxpayer fails to comply with notices or does not furnish necessary information. Section 147 concerns reassessments, allowing the tax authority to reopen cases if income has escaped assessment.

Under the faceless regime, both these assessment types are conducted without physical interaction, and all communications flow electronically through the e-Proceedings utility. The process ensures transparency and reduces opportunities for discretionary powers and corruption.

Accessing Reassessment and Best Judgment Notices on the Portal

To begin with, taxpayers must know how to locate and access notices related to sections 144 and 147 on the new portal.

• Log in to your account .

• Navigate to the ‘e-Proceedings’ tab in the ‘Pending Actions’ section on the dashboard.

• On the ‘View e-Proceedings related to’ page, you will see notices related to various sections, including 144 and 147.

• Use the filters to locate notices specific to these sections or a particular assessment year.

• Select the relevant notice to view details.

Having a clear understanding of the portal’s navigation simplifies the management of multiple proceedings.

Detailed Steps to Respond to Notices under Section 147

Section 147 reassessment notices are issued when the tax authorities believe that income has escaped assessment in the original return. Faceless assessments under this section are handled through the e-Proceedings utility, allowing digital exchange of documents and responses.

Step 1: Viewing the Notice and Understanding the Queries

• Click on ‘View Notices’ under ‘Assessment Proceedings under section 147’.

• Open the ‘Notice/Letter Pdf’ tab to read the reassessment notice.

• Examine the specific reasons cited for reassessment and the period involved.

• Identify any questionnaires attached requiring detailed information or documents.

Step 2: Collating Necessary Documents and Evidence

Taxpayers should gather all relevant documents related to the reassessment year such as:

• Income proof including bank statements and salary slips.

• Proof of expenses or deductions claimed.

• Contracts, agreements, or invoices.

• Correspondence supporting the reported income and tax paid.

Having organized documentation facilitates quicker and accurate responses.

Step 3: Preparing a Comprehensive Response

• Draft a clear reply addressing all points raised in the notice.

• Attach supporting evidence to validate your explanations.

• Keep language simple and factual to avoid ambiguity.

Step 4: Uploading Response and Documents on the Portal

• Return to the ‘View Response’ tab under the respective reassessment notice.

• Use the ‘Upload Response’ option to attach your written reply and scanned documents.

• Verify the attachments for completeness and clarity before submission.

• Submit the response and note down the acknowledgment receipt generated by the portal.

Timely submission is crucial to avoid further adverse action.

Handling Best Judgment Assessments under Section 144

Best judgment assessments arise when the taxpayer does not comply with information requests or fails to file returns timely. The faceless system ensures that such assessments are conducted fairly using automated processes.

Receiving the Best Judgment Assessment Notice

• Log in and access the ‘e-Proceedings’ tab.

• Locate the ‘Assessment Proceedings under section 144’ section.

• Click ‘View Notices’ to find any pending notices issued under section 144.

• Open the notice to understand the reasons for best judgment assessment.

Responding to Section 144 Notices

Though best judgment assessments are generally passed in the absence of taxpayer cooperation, the faceless system provides opportunities for the taxpayer to respond:

• Upload explanations or documents if you receive the notice in time.

• Request adjournments if additional time is needed to furnish evidence.

• Use the ‘Seek Adjournment’ tab to apply for an extension with valid reasons.

Engaging proactively can sometimes help avoid harsh assessments.

Seeking Adjournments and Filing Rejoinders

The portal allows taxpayers to request more time for compiling responses or clarifying points raised by the assessing officer.

How to Request Adjournment

• Within the relevant notice, click on the ‘Seek Adjournment’ tab.

• Provide a reason for the request, such as needing more time to gather documents or consult a professional.

• Submit the request before the deadline to avoid defaulting.

The assessing officer will consider the request and notify the taxpayer electronically regarding approval or denial.

Filing Rejoinders to Queries or Draft Assessments

Sometimes, the assessing officer may raise additional queries or issue a draft assessment order.

• Respond promptly by uploading your rejoinder or clarification through the ‘View Response’ tab.

• Ensure all points are addressed logically and supported by documents.

• Maintain records of all submissions for future reference.

Tracking the Progress of Assessments

The e-Proceedings utility provides transparency in tracking the assessment status.

• Use the portal to check whether further notices or queries have been issued.

• View updates about assessment orders or demand notices generated post-assessment.

• The ‘Pending Actions’ and ‘Closed Proceedings’ filters help monitor ongoing and completed cases.

Regular monitoring ensures timely responses and compliance.

Practical Challenges in Faceless Reassessments and Best Judgment Assessments

While the system is designed for efficiency, taxpayers may face some challenges:

Complex Queries and Documentation

Reassessment notices can sometimes contain detailed and technical queries requiring expert advice. Organizing voluminous documents digitally can also be cumbersome.

Limited Opportunity for Personal Hearing

The faceless system limits physical hearings, which some taxpayers find challenging. However, video conferencing or electronic hearing options are available in select cases.

Time Constraints

Deadlines for response can be stringent. Delays in uploading responses may lead to unfavorable assessments.

Technical Issues on the Portal

Occasional glitches or slow response times can hinder smooth submissions. Using updated browsers and stable internet connections helps mitigate these problems.

Tips to Navigate Faceless Reassessment and Best Judgment Proceedings Efficiently

• Regularly check your registered email and portal dashboard for notifications.

• Maintain organized digital records sorted by assessment year and section.

• Respond to notices well before deadlines to avoid last-minute rushes.

• Consult qualified professionals when technical or legal complexities arise.

• Use the portal’s helpdesk or FAQs for assistance with procedural questions.

• Keep all correspondence and acknowledgments saved securely.

Role of Automated Systems and Artificial Intelligence in Faceless Assessments

The faceless assessment regime leverages advanced technologies like Computer Aided Scrutiny Selection System (CASS) and artificial intelligence algorithms to identify cases for reassessment and best judgment assessment.

• These systems analyze data patterns and inconsistencies to flag potential tax evasion or underreporting.

• Notices and assessments are generated electronically, minimizing human bias.

• Such automation also accelerates case processing, reducing taxpayer wait times.

Understanding this technological backdrop helps taxpayers appreciate the procedural rigor and the importance of accurate disclosures.

Legal Safeguards and Rights of Taxpayers in Faceless Proceedings

Despite the digital nature of faceless assessments, the Income Tax Act safeguards taxpayer rights:

• Every notice must be issued through the portal with an option to download.

• Taxpayers have the right to seek clarifications and adjournments.

• Communication is maintained through secure electronic means, ensuring data privacy.

• Assessment orders passed must specify reasons and be accessible online.

• The appellate and revision mechanisms remain intact for grievances.

Being aware of these protections enables taxpayers to assert their rights confidently.

Case Study: Managing a Faceless Reassessment under Section 147

Consider a businessman who receives a notice under section 147 alleging underreporting of income for the financial year 2019-20.

• The businessman logs in to the income tax portal and downloads the notice.

• He reviews the points raised, mainly relating to unexplained cash credits.

• He collects bank statements, invoices, and ledger entries to substantiate the transactions.

• A detailed response letter is prepared explaining the source of cash credits.

• All documents and responses are uploaded through the ‘View Response’ tab.

• He tracks the portal regularly for any further notices or orders.

• Upon receipt of a draft assessment order, he files a rejoinder electronically addressing any additional queries.

This structured approach minimizes compliance risks and facilitates smoother resolution.

How to Handle Assessment Orders Passed via the Faceless System

Once an assessment order under sections 144 or 147 is finalized and uploaded on the portal:

• The taxpayer receives a notification via email and SMS.

• The order can be downloaded from the ‘e-Proceedings’ section under ‘Closed Proceedings’.

• If dissatisfied, the taxpayer can file an appeal electronically within prescribed timelines.

• It is advisable to review the order carefully and seek professional advice before appealing.

Future Developments in Faceless Assessment Proceedings

The government continuously upgrades the e-filing portal and e-Proceedings utility to improve usability and compliance.

• Integration with other government databases is increasing for cross-verification.

• Video conferencing hearings are being expanded to offer more interactive sessions.

• Enhanced analytics and artificial intelligence are expected to improve case selection and risk assessment further.

Staying updated with these developments will empower taxpayers to navigate faceless assessments more effectively.

Security and Confidentiality in Faceless Reassessment Processes

Security remains a top priority given the sensitive nature of tax data.

• Data encryption during transmission and storage protects taxpayer information.

• Role-based access ensures only authorized personnel can view case details.

• Regular security audits prevent breaches and data leaks.

Taxpayers should also adopt best practices such as using secure devices and avoiding public Wi-Fi when accessing the portal.

Key Points for Faceless Assessments under Sections 144 and 147

• Faceless reassessments and best judgment assessments are conducted entirely online via the e-Proceedings utility.

• Taxpayers must regularly check the portal for notices and respond within stipulated timelines.

• Detailed, clear, and well-supported replies reduce the risk of adverse orders.

• Adjournments can be sought for valid reasons through the portal.

• Automated systems play a significant role in case selection and notice issuance.

• Legal safeguards protect taxpayer rights throughout the process.

• Maintaining organized records and being proactive enhances compliance and reduces complications.
  

Conclusion 

The faceless assessment regime, supported by the new e-Proceedings utility on the Income Tax Department’s modernized portal, marks a significant step toward transparent, efficient, and taxpayer-friendly tax administration. By eliminating physical interactions and enabling fully digital communication, this system reduces procedural delays, curtails discretionary practices, and provides taxpayers with greater control and convenience in managing their assessments.

Navigating faceless assessments under sections 143(3), 144, and 147 requires understanding the digital tools, timely responses, and maintaining well-organized documentation. The portal’s features like uploading responses, seeking adjournments, and tracking proceedings empower taxpayers to engage actively and effectively throughout the assessment process.

While some challenges such as technical issues and limited physical hearings may arise, the continuous evolution of the platform, backed by automation and artificial intelligence, promises improved user experience and quicker resolutions. Importantly, legal safeguards embedded within the faceless framework ensure taxpayer rights remain protected.

Ultimately, embracing the faceless assessment system and becoming proficient in using the e-Proceedings utility equips taxpayers and professionals alike to handle scrutiny seamlessly, making compliance simpler and more transparent in today’s digital age.