{"id":24488,"date":"2021-01-19T15:26:33","date_gmt":"2021-01-19T09:56:33","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24488"},"modified":"2021-01-21T18:54:05","modified_gmt":"2021-01-21T13:24:05","slug":"cbdt-on-faceless-penalty-scheme-2021","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/","title":{"rendered":"An Overview of Notification Released by CBDT on Faceless Penalty Scheme, 2021"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Government of India\nhas announced the Faceless\nPenalty Scheme, 2021 by the vide Notification No. 02 \/2021 which will digitize the issuance of penalty on\nassessees under the faceless tax regime. It has become effective from 13<sup>th<\/sup>\nJanuary 2021.<\/p>\n\n\n\n<p>The Faceless Penalty scheme,\n2021 specifies the establishment of the National Faceless Penalty Center,\nRegional Penalty Center, Penalty Unit and Review Unit for execution of penalty\nproceedings, such as when a penalty order is properly issued and before an\nassessee is issued on undergoes review.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Scope_of_the_Faceless_Penalty_Scheme\" >Scope of the Faceless Penalty\nScheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Highlights_of_the_Faceless_Penalty_Scheme_2021\" >Highlights of the Faceless Penalty Scheme, 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Authorities_under_Penalty_Unit_Penalty_Review\" >Authorities under Penalty Unit &amp; Penalty\nReview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Procedure_in_Penalty_under_Faceless_Penalty_Scheme_2021\" >Procedure in Penalty under Faceless\nPenalty Scheme, 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Rectification_Proceedings_under_Faceless_Penalty_Scheme_2021\" >Rectification Proceedings under Faceless\nPenalty Scheme, 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Appellate_Proceedings_under_Faceless_Penalty_Scheme_2021\" >Appellate Proceedings under Faceless\nPenalty Scheme, 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Exchange_of_Communication_Exclusively_by_Electronic_Mode\" >Exchange of Communication Exclusively\nby Electronic Mode<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-on-faceless-penalty-scheme-2021\/#Concluding_Remark\" >Concluding Remark<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scope_of_the_Faceless_Penalty_Scheme\"><\/span>Scope of the Faceless Penalty\nScheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The penalty\nunder this scheme will be levied in respect of such territorial area, or class\nof persons or persons, or class of income or cases or class of cases, or class\nof penalties or penalties which may be specified by the Board.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights_of_the_Faceless_Penalty_Scheme_2021\"><\/span>Highlights of the Faceless Penalty Scheme, 2021\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below\nlisted are the features of Faceless Penalty Scheme, 2021, which are as\nfollows:- <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">National \/ Regional Penalty Centre<\/h3>\n\n\n\n<p>For the purposes of this\nScheme, the CBDT will set up a National Faceless Penalty Centre, Regional\nFaceless Penalty Centres to facilitate the conduct of faceless penalty\nproceedings and vested with the jurisdiction to levied fines as per the\nprovisions of the scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Setting up of Penalty Units<\/h3>\n\n\n\n<ul><li>Penal\nunits will be set up by the CBDT to draft punitive orders, which contains the identification\nof points or issues to levied penalties under the Income Tax Act<\/li><li>It\nis for seeking information or clarification on the points or issues identified,\nit gives an opportunity to listen to the assessee or any other person, analysis\nof material submitted by the assessee or any other person, such as may be\nimportant for other works.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty Review Units<\/h3>\n\n\n\n<p>Penalty review units\nshall also be setup to perform the functions of review of draft penalty order.<\/p>\n\n\n\n<ul><li>Whether\nrelevant real evidence has been brought on record or not,<\/li><li>Whether\nthe similar to points of fact and law have been duly registered in the draft\norder or not,<\/li><li>Whether\nthe matter on which penalty is to be imposed have been mentioned in the draft\norder or not , <\/li><li>Whether\nthe precedents have been considered and dealt with in the draft order or not, <\/li><li>To\nreview arithmetical correctness of computation of penalty, if any, and such other\nfunctions as may be needed for the reasons of review.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Authorities_under_Penalty_Unit_Penalty_Review\"><\/span>Authorities under Penalty Unit &amp; Penalty\nReview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The penalty\nreview unit and the penalty unit will have the below listed authorities, namely:\u2013<\/p>\n\n\n\n<ul><li>&nbsp;Joint Commissioner or\nAdditional Director or Joint Director or Additional Commissioner<\/li><li>Income-tax Officer or Deputy Commissioner or Assistant\nCommissioner or Deputy Director or Assistant Director<\/li><li>Ministerial staff or Other income-tax authority, consultant\nor executive, as may be considered important<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_in_Penalty_under_Faceless_Penalty_Scheme_2021\"><\/span>Procedure in Penalty under Faceless\nPenalty Scheme, 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Tax authority or the\nNational Faceless Assessment Centre can initiate penalty proceedings and issue\na show-cause notice for imposition of penalty; or<\/li><li>National Faceless Penalty\nCenter can assign case to a specific penal unit in one of the regional faceless\npenalty centers through an automated allocation system if any reference has\nbeen received,<\/li><li>It is recommended to the\npenal unit to initiate punitive proceedings against such a unit, <\/li><li>After&nbsp; examining the piece of evidence, the penal\nunit can decide the case,<\/li><li>When the case has been\ndecided by the penal unit, the penal unit can initiate the sentencing\nproceedings.<\/li><li>The penal unit will summon\nthe assessee or any other person and prepare a draft notice.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rectification_Proceedings_under_Faceless_Penalty_Scheme_2021\"><\/span>Rectification Proceedings under Faceless\nPenalty Scheme, 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>With respect to any order passed by the National Faceless Appeal Center may rectify any mistake apparent from the record, and may amend the mistake by passing an order in writing.<\/li><li>Subject to other provisions of the scheme, an application to rectify the mistake may be filed with the National Facial Penalty Center by shown below.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"985\" height=\"997\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Rectification-Proceedings-under-Faceless-Penalty-Scheme-2021.png\" alt=\"Rectification Proceedings under Faceless Penalty Scheme, 2021\" class=\"wp-image-24490\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Rectification-Proceedings-under-Faceless-Penalty-Scheme-2021.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Rectification-Proceedings-under-Faceless-Penalty-Scheme-2021-296x300.png 296w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Rectification-Proceedings-under-Faceless-Penalty-Scheme-2021-768x777.png 768w\" sizes=\"(max-width: 985px) 100vw, 985px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appellate_Proceedings_under_Faceless_Penalty_Scheme_2021\"><\/span>Appellate Proceedings under Faceless\nPenalty Scheme, 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>An appeal against the penalty order made by the National\nFaceless Penalty Center under this scheme shall lie on the Income Tax Officer\nof the jurisdiction of the Commissioner (Appeals) or as the jurisdiction before\nthe National General Appeal Center, as the case may be;<\/li><li>In any communication to the National Faceless Penalty Center,\nany reference to the Commissioner (Appeals) may mean such jurisdiction as the\nCommissioner (Appeals) or the National Faceless Appeal Center.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exchange_of_Communication_Exclusively_by_Electronic_Mode\"><\/span>Exchange of Communication Exclusively\nby Electronic Mode<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It has been provided that for the purposes of the Scheme all\ncommunications between the National Faceless Penalty Centre and the assessee or\nany other person.<\/li><li>As the case may be, or his authorized representative, shall\nbe exchanged exclusively by electronic mode; <\/li><li>All internal communications between the National Faceless\nPenalty Center, National Faceless Assessment Center, Regional Faceless Penalty\nCenter, any Income Tax-tax authority, penal unit or penal review unit will be\nexchanged exclusively by electronic mode.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Delivery of Electronic Record<\/h3>\n\n\n\n<ul><li>An electronic record shall be authenticated by a<strong> <\/strong><a href=\"https:\/\/corpbiz.io\/learning\/how-can-one-avail-digital-signature-certificate-dsc\/\"><strong>digital signature certificate<\/strong><\/a><strong> <\/strong>to fulfill the purpose of this scheme, if it is necessary under the rules for the assessee to return his income under a digital signature and in any other case a digital signature will be done by a verification code.<\/li><li>Under this scheme every notice or order or any other electronic communication shall be conveyed to the assessee through a registered account or by keeping a certified copy to the registered email address or its authorized representative.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">No Personal Appearance<\/h3>\n\n\n\n<ul><li>Under the Faceless Penalty Scheme, 2021 assessee will not be needed\nto appear before the Income Tax Officer either in person or through an\nauthorized representative in respect of any action under this scheme at the\nNational Faceless Penalty Center or Regional Faceless Penalty Center or Penalty\nUnit or Penalty Review Unit. <\/li><li>The assessee&#8217;s authorized representative may request for a\npersonal hearing, so as to make his oral presentation or present his case\nbefore the penalty unit under the provisions of scheme.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remark\"><\/span>Concluding Remark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Faceless Penalty Scheme, 2021 has given the direction to &nbsp;the process of taking punitive action in a virtual manner without any physical interaction between the tax payer and the <strong>Income Tax Department<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/Pages\/default.aspx\"><strong>[1]<\/strong><\/a><\/sup>. The said scheme aligns with the Faceless Assessment Scheme and the Faceless Appeal Scheme.<\/p>\n\n\n\n<p>The Faceless Penalty Scheme, 2021 leverages on the development of technology and aims to meet the Honourable Prime Minister&#8217;s vision for improving transparency, efficiency and accountability in tax administration. Kindly associate with the Corpbiz expert to know more about the notification releases by CBDT on Faceless Penalty Scheme, 2021.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/orders-passed-by-income-tax-appellate-tribunal-itat\/\">\nNecessary Orders Passed By Income Tax Appellate Tribunal (ITAT) that You Must Know!\n<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/notification_no_3_2021.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">notification_no_3_2021<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government of India has announced the Faceless Penalty Scheme, 2021 by the vide Notification No. 02 \/2021 which will digitize the issuance of penalty on assessees under the faceless tax regime. It has become effective from 13th January 2021. The Faceless Penalty scheme, 2021 specifies the establishment of the National Faceless Penalty Center, Regional [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24492,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,152],"tags":[1445],"acf":{"service_id":"215"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":4044,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24488"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24488"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24488\/revisions"}],"predecessor-version":[{"id":24584,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24488\/revisions\/24584"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24492"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}