The idea of "Scheme for Faceless Proceedings before ITAT" announced by Finance Minister Smt. Nirmala Sitharaman brings into light a new subsection (7) to Section 255 of the Income Tax Act, 1961 in the Finance Bill 2021 w.e.f. 1.4.2021. This article showcases the reality of Section 255(7) with the help of analyzing the pros and cons of the Faceless Adjudication Mechanism.
In concerned to the proposed budget 2021, a new subsection in section 255 of the act is proposed to launch in the faceless scheme for ITAT proceedings on the same line as is a faceless appeal.
This will result in a high level of efficiency, accountability and transparency to the assessment procedure, appeal procedure, and penalty-related procedures under the income tax act.
There are already sufficient safeguards as regards the manner of appointment of Members of ITAT and how they operate. Whether it will be necessary to make such a big change, as it is not necessary to make such an independent judicial body faceless based on the presumptions that currently it is leading to malpractices.
On the other hand, the faceless assessment scheme has been recently introduced and the results of the same are not known yet. There should not be such a hurry in making the entire taxation system faceless in such a short span of time.
Tags :union budgetunion budget 2021budgetincome tax