The Central Board of Direct Taxes (CBDT) notified the  directions for giving effect to Faceless Penalty Scheme 2021.

The CBDT notifies that the provisions of section 2, section 120, section 127, section 129, section 131, section 133, section 133C, section 136 and Chapter XXI of the said Act shall apply to the procedure for imposing penalty in accordance with the said Scheme subject to the exceptions, modifications and adaptations.

The penalty shall be levied under Faceless Penalty Scheme 2021 as per the procedure notified by the government.

Firstly, where any income-tax authority or the National Faceless Assessment Centre has, in a case initiated penalty proceedings and issued a show-cause notice for imposition of penalty.

Secondly, the National Faceless Penalty Centre shall in a case, where reference has been received as per the above clause shall assign such case to a specific penalty unit in any one of the Regional Faceless Penalty Centres through an automated allocation system.

Thirdly, Once a case is assigned to an assessment unit, it may make a request to the National e-Assessment Centre for Obtaining such further information, documents or evidence from the taxpayer or any other person, as it may specify and Conducting of certain enquiry or verification by verification unit and shall seek technical assistance from the technical unit.

As per the Scheme upon a request being made by the assessment unit for any documents or evidence, the National e-Assessment Centre shall issue appropriate notice or requisition to the taxpayer or any other person for obtaining the information, documents or evidence requisitioned by the assessment unit and the taxpayer can submit a response to the notice within the time specified in the notice.

The Assessment Unit after taking into account all the relevant material gathered, passes a draft assessment order either accepting the returned income of the taxpayer or modifying the returned income of the taxpayer, as the case may be, and sends a copy of such order to the National e-Assessment Centre.

An appeal against an assessment order or penalty order made by the National e-Assessment Centre under this scheme can be filed before the Commissioner (Appeals) having jurisdiction over the jurisdictional Assessing Officer.