Key Highlights
- All scrutiny assessments: faceless under Section 271, ITA 2025
- Cases randomly allocated to AOs across India — no jurisdictional AO
- All notices, responses, hearings (video conference), and orders: electronic only
- Technical Unit and Review Unit built into the faceless system for quality
- Exceptions: Search and seizure cases, international taxation, black money cases
- Taxpayer rights: opportunity to be heard, personal hearing on request (video conference)
Legal Reference
Section 271 (faceless assessment scheme), Section 268 (assessment procedure), ITA 2025 | Faceless Assessment Scheme 2019 incorporated in ITA 2025 | Corresponds to Sections 144B of ITA 1961
1. What is Faceless Assessment?
Faceless assessment means that your income tax case is handled by a team of Assessment Officers who are randomly assigned — not your local AO. The assessee and AO never meet in person. All communication is through the IT Portal. This was designed to eliminate corruption, ensure consistency, and reduce geographic bias in tax assessments.
2. The Faceless Assessment Process
- Case selection: Automated system selects cases for scrutiny using risk parameters and AI
- Notice issued: Section 268 notice sent to taxpayer via IT Portal (email and portal notification)
- Response submission: Taxpayer submits response, documents, and explanations on the portal
- Technical Unit review: Specialised team analyses technical issues (valuation, transfer pricing, etc.)
- Draft order: Assessment Unit prepares a draft assessment order
- Review Unit: Mandatory review of cases with additions by the Review Unit
- Final order: Passed after considering all responses; sent electronically
3. Video Conference: Right to Personal Hearing
If a taxpayer believes written responses are insufficient to present their case, they can request a personal hearing under Section 271 of ITA 2025. This hearing is conducted via video conference — not in person. The hearing is recorded. Personal hearings are usually requested for complex matters involving large tax additions.
4. Types of Notices Under Faceless System
| Notice Type | Purpose | ITA 2025 Section |
|---|
| Section 268 limited scrutiny notice | Specific query on one or more items in ITR | Section 268 |
| Section 270 complete scrutiny notice | Complete examination of ITR | Section 270 |
| Section 279 reassessment notice | Reopening of completed assessment | Section 279 |
| Section 274 defective return notice | Wrong ITR form or incomplete information | Section 274 |
5. Cases NOT Under Faceless Assessment
The following types of cases are specifically excluded from the faceless scheme and are handled by jurisdictional AOs:
- Search and seizure cases (Section 247)
- Survey cases (Section 253)
- International taxation and transfer pricing cases
- Black money and undisclosed foreign income cases
- Cases involving technical assistance as directed by CBDT
6. Why TaxClue
Faceless assessments require high-quality written responses with complete documentation — since there is no in-person hearing to supplement a weak response. TaxClue drafts comprehensive assessment replies, organises documentation, and represents you through the entire faceless process. Contact us for faceless assessment response services.
Disclaimer
This article is for general informational and educational purposes only. It does not constitute legal, financial, or professional tax advice. Readers are advised to consult a qualified Chartered Accountant or tax professional before making any decisions. TaxClue Consultech Pvt Ltd accepts no liability. All case studies and examples in this article are illustrative only and do not represent actual persons or transactions.
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❓ Frequently Asked Questions
What is faceless assessment in income tax?
Faceless assessment means that income tax scrutiny cases are handled digitally, without any in-person interaction between the taxpayer and the Assessing Officer. Cases are randomly allocated to AOs across India (not based on geography), all communications happen through the Income Tax Portal, and orders are passed electronically. This system was designed to eliminate corruption and provide consistent, unbiased assessments — introduced in 2019 and now codified under Section 271 of ITA 2025.
How do I respond to a faceless assessment notice?
Login to the Income Tax Portal at incometax.gov.in. Go to 'Pending Actions' or the 'e-Proceedings' section. Find the notice under your assessment. Prepare a detailed written response addressing each point raised by the AO. Upload supporting documents (bank statements, invoices, agreements, valuation reports) as attachments. Submit the response before the deadline specified in the notice. All communication is digital — do not visit any tax office in person.
Can I request a personal hearing in faceless assessment?
Yes. Under Section 271 of the Income Tax Act, 2025, a taxpayer can request a personal hearing if they believe a written response is insufficient to explain their case. This hearing is conducted via video conference — not in person. The request must be made through the IT Portal and approved by the Assessment Unit. Video conference hearings are typically granted for complex matters involving large tax additions or technical issues.
Which cases are excluded from faceless assessment?
Cases excluded from the faceless assessment scheme include: search and seizure cases under Section 247; survey cases under Section 253; international taxation and transfer pricing cases; black money and undisclosed foreign income cases under the Black Money Act; and any cases specifically excluded by CBDT notification. These cases continue to be handled by the relevant specialist jurisdictional Assessing Officers.
What is the Review Unit in faceless assessment?
The Review Unit is an independent team within the faceless assessment system that reviews draft assessment orders before they are finalised — particularly in cases where the Assessment Unit proposes significant additions to income. The Review Unit checks whether additions are legally sound and factually correct. This two-level quality check was built into the faceless system to prevent arbitrary or incorrect assessments and to ensure consistency in tax administration.
