Challenges In Implementing Faceless Assessment Under The Income-Tax Act, 1961

The Faceless Assessment ('FA') scheme under India's Income-tax Act, 1961 ('Act') aims to enhance transparency and efficiency by minimizing direct contact between taxpayers and assessment officers. Despite its innovative approach, the scheme encounters challenges relating to natural justice, technical hurdles, and procedural inefficiencies. Concerns include the principles of fair hearing and bias, highlighted by insufficient response times to notices and an arbitrary allotment of cases. Additionally, technical issues and the lack of personal hearings contribute to difficulties in accurate and fair assessments. Addressing these issues could significantly improve the effectiveness and fairness of the FA scheme, aligning it better with its intended goals.