Delhi HC Admits Petition Challenging the Faceless Income Tax Appeal Scheme

Delhi HC Admits Petition Challenging the Faceless Income Tax Appeal Scheme

640
11
SHARE

Within a month of its launch, Faceless Income Tax Appeal Scheme is under judicial scrutiny as Delhi High Court has allowed a petition challenging the scheme. The Court has reportedly issued notice to the Government and the matter will now be heard on December 15.

On Sep 25, the Centre launched ‘Faceless Income Tax Appeal’ to further ease compliance and reduce physical interface between the assessee and the Income Tax Department. It was said that out of 4.6 lakh appeals pending at the level of the Commissioner (Appeals) in the IT Department, about 4.05 lakh appeals (88% of the total) will be handled under the new mechanism. Almost 85% of the present strength of Commissioners (Appeals) will be utilized for disposing of cases under the faceless appeal mechanism.

In the petition, the petitioner asserts that the right of being heard, even through the video conferencing mode, will be subject to the approval of the Chief Commissioner or the Director General and therefore the same is discretionary, i.e. he ‘may’ or ‘may not’ provide a right of personal hearing in the matter. The petition also said that the right to provide or not to provide a hearing in the matter is also against the principle of audi alteram partem i.e. no person should be judged without a fair hearing in which each party is given an opportunity to respond to the evidence against them.

The petitioner sought a direction to the tax department to grant an opportunity of hearing to all taxpayers/assessee and to hold that the same is not at the discretion of the Chief Commissioner or the Director General as proposed in the scheme. He also prayed for a declaration that the scheme is discriminatory, arbitrary and illegal to the extent it provides a virtual hearing as per the circumstances to be approved by the administrative authorities under the Income Tax Act, 1961.

According to one expert, right since introduction of the scheme, taxpayers have been apprehensive about efficacy of this system, as income tax appeals often involve complex issues that may not be sufficiently explained based on written submissions alone and a personal explanation may be required before the appellate authority. However, under the new system, an opportunity to make personal representation through video conferencing would require prior permission of the Principal Chief Commissioner/ Director General and involves an element of discretion in this fundamental right provided under the law to an appellant Taxpayer.

11 COMMENTS

  1. I just could not depart your website prior to suggesting that I extremely enjoyed the standard information a person provide for your visitors? Is gonna be back often in order to check up on new posts

  2. Definitely believe that which you stated. Your favorite reason seemed to be on the web the easiest thing to understand of. I say to you, I certainly get irked even as folks consider worries that they just don’t know about. You controlled to hit the nail upon the highest and defined out the whole thing with no need side-effects , other folks can take a signal. Will probably be again to get more. Thank you|

  3. It is really a great and helpful piece of information. I’m glad that you shared this helpful info with us. Please keep us informed like this. Thank you for sharing.|

  4. My coder is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am concerned about switching to another platform. I have heard great things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any help would be really appreciated!|

  5. Hey there! I know this is somewhat off topic but I was wondering if you knew where I could get a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!|

  6. I got what you mean , thankyou for putting up.Woh I am thankful to find this website through google. “Food is the most primitive form of comfort.” by Sheila Graham.

  7. Good day! Do you use Twitter? I’d like to follow you if that would be okay. I’m definitely enjoying your blog and look forward to new updates.|

  8. Hmm is anyone else having problems with the pictures on this blog loading? I’m trying to determine if its a problem on my end or if it’s the blog. Any feedback would be greatly appreciated.|

LEAVE A REPLY