Faceless Assessment and Appeals Under ITA 2025: Complete Process Guide

Faceless Assessment and Appeals explained: this guide covers what Faceless Assessment and Appeals means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

India's Faceless Assessment Scheme, first launched in 2019 and now codified in ITA 2025, eliminates physical interface between tax officers and taxpayers. All scrutiny assessments, notices, and appeals are conducted electronically through the income tax portal, with cases randomly assigned to officers across different cities — removing the ability for corruption or selective targeting.

How Faceless Assessment Works

1. Notice u/s 142(1)/148: Issued electronically through portal; taxpayer alerted via email/SMS on registered contact
2. Central Computer-Based Selection: Cases selected for scrutiny by CASS (Computer Aided Scrutiny Selection) based on data analytics, not officer discretion
3. NFAC (National Faceless Assessment Centre): Coordinates all assessments; cases assigned to Faceless Assessment Units across India
4. No physical meetings: All submissions via portal only; personal hearings in exceptional cases via video conference
5. Multi-layer review: Assessment Unit drafts order → Review Unit cross-checks → NFAC finalizes

Types of Faceless Proceedings

• Faceless Assessment (scrutiny)
• Faceless Reassessment (Section 147/148 — reopening)
• Faceless Penalties
• Faceless Appeals (CIT(A) level)

Faceless Appeals — CIT(A)

Appeals against assessment orders are also now faceless. The taxpayer files Form 35 on the portal. The Appellate Unit is randomly assigned (different city from assessment). All proceedings are via portal — written submissions, evidence, and arguments. Video conference hearings available on request.

Taxpayer Rights in Faceless Proceedings

• Right to personal hearing via video conference (on request)
• All show cause notices must contain the specific draft order
• Opportunity to respond before adverse orders are passed
• NFAC must consider all submissions before finalizing order

Limitations and Criticisms

• Technical glitches on portal can cause missed deadlines
• Complex cases benefit from physical meeting — faceless is less effective for complex fact-finding
• Copy of documents and evidence submission can be cumbersome electronically

AIS — Annual Information Statement

AIS is the cornerstone of faceless assessment. It aggregates financial transactions from multiple sources (banks, registrars, stockbrokers, employers) and pre-fills ITR. Discrepancies between AIS and ITR trigger automated scrutiny selection.