Section 273 explained: this guide covers what it 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.
Section 273 makes assessment, reassessment and recomputation faceless for the cases the Board specifies. It sets up a National Faceless Assessment Centre and four kinds of unit, fixes how communications flow, deals with a special audit reference and with transfer to the jurisdictional Assessing Officer, and defines the electronic "e-Proceeding" facility. This article explains it as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
Assessment, reassessment or recomputation under section 270(10), 271 or 279 is made in a faceless manner for the territorial areas, persons, incomes or cases specified by the Board. A National Faceless Assessment Centre runs the process through assessment, verification, technical and review units. All communications go through the Centre and exclusively by electronic mode, except the enquiry or verification of the verification unit in circumstances the Board specifies. The assessee must be heard.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for this section. Later amendments, rules and notifications should be checked. For notices and faceless assessments, see our legal dispute resolution service.
What is made faceless: sub-sections (1) and (2)
Irrespective of anything to the contrary in any other provision, the assessment, reassessment or recomputation under section 270(10) or 271 or 279, as the case may be, with respect to the cases referred to in sub-section (2), shall be made in a faceless manner as per such procedure as may be prescribed.
Under sub-section (2), the faceless assessment is made in respect of such territorial area, persons or class of persons, incomes or class of incomes, or cases or class of cases as may be specified by the Board. Which areas, persons or cases the Board has specified is not in the text consulted. The procedure is left to the Income-tax Rules, 2026; see our rule-wise guides.
Section 270 is explained in our post on section 270, processing, intimation and assessment, and section 279 in our post on income escaping assessment.
The Centre and the units: sub-section (3)
The Board may, for the purposes of faceless assessment, set up and specify the functions and jurisdiction of:
| Clause | Body | Functions listed in the section |
|---|---|---|
| (a) | National Faceless Assessment Centre | Facilitate faceless assessment proceedings in a centralised manner, including assigning the case to a specific assessment unit, intimating the assessee that assessment will be completed under the section, serving a notice under section 268(1) or 270(8), and forwarding the assessee's response to the assessment unit |
| (b) | Assessment units | Make the assessment: analyse the material furnished by the assessee or any other person, identify points or issues material to determining any liability (including refund), seek information or clarification on them, determine any variation prejudicial to the assessee, and other functions required |
| (c) | Verification units | Facilitate the conduct of the assessment through verification: enquiry, cross verification, examination of books of account, examination of witnesses and recording of statements, and other functions required |
| (d) | Technical units | Provide technical assistance: advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management or any other technical matter under the Act or an agreement under section 159 |
| (e) | Review units | Review any variation proposed by the assessment unit (wherever the Centre considers it necessary): checking whether relevant and material evidence has been brought on record, relevant points of fact and law have been incorporated, the issues requiring addition or disallowance have been incorporated, and other functions required |
How the units work: sub-sections (4) to (6)
- (4) In accordance with the prescribed procedure, (a) the verification, technical and review units facilitate the conduct of faceless assessment; and (b) the assessment unit shall (i) make the assessment of total income or loss by an order in writing, after taking into account all relevant material it has gathered and after giving the assessee an opportunity of being heard, and may also initiate penalty proceedings, if any; and (ii) determine the sum payable by the assessee or the refund due to him on the basis of the assessment.
- (5) The terms "assessment unit", "verification unit", "technical unit" and "review unit" refer to an Assessing Officer having powers so assigned by the Board.
- (6) These units have the following authorities: (a) Additional Commissioner, Additional Director, Joint Commissioner or Joint Director; (b) Deputy Commissioner, Deputy Director, Assistant Commissioner, Assistant Director or Income-tax Officer; and (c) such other income-tax authority, ministerial staff, executive or consultant as the Board considers necessary.
Communications: sub-sections (7) and (8)
All communications, save as provided in sub-section (8):
- (a) among the assessment, review, verification and technical units, or with the assessee or any other person with respect to information, documents, evidence or any other details necessary for a faceless assessment, shall be through the National Faceless Assessment Centre;
- (b) between the Centre and the assessee, or his authorised representative, or any other person, shall be exchanged exclusively by electronic mode; and
- (c) between the Centre and the various units shall be exchanged exclusively by electronic mode.
Sub-section (8) says sub-section (7) does not apply to the enquiry or verification conducted by the verification unit in the circumstances specified by the Board.
Special audit reference and transfer: sub-sections (9) to (12)
| Sub-section | What it says |
|---|---|
| (9) | The Principal Chief Commissioner or Principal Director General in charge of the Centre, as per the Board's procedure, if he considers that section 268(5) (special audit or inventory valuation) may be invoked, shall (a) forward any reference received from an assessment unit to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner having jurisdiction, and inform the assessment unit; and (b) transfer the case to the Assessing Officer having jurisdiction as per sub-section (12) |
| (10) | A Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner who receives a reference under sub-section (9)(a) shall direct the Assessing Officer having jurisdiction to invoke section 268(5) |
| (11) | Where a reference has not been forwarded under sub-section (9)(a), the assessment unit proceeds to complete the assessment under the section |
| (12) | Irrespective of sub-section (1) or (2), the Principal Chief Commissioner or Principal Director General in charge of the Centre may, at any stage, if considered necessary, transfer the case to the Assessing Officer having jurisdiction, with the prior approval of the Board |
The special audit power is explained in our article on sections 268 and 272.
Definitions: sub-section (13)
- "Designated portal" means the web portal designated as such by the Principal Chief Commissioner or the Principal Director General in charge of the National Faceless Assessment Centre.
- "Faceless assessment" means the assessment proceedings conducted electronically in the "e-Proceeding" facility through the registered account of the assessee in the designated portal.
- "Registered account" of the assessee means the electronic filing account registered by the assessee in the designated portal.
The section does not name the portal or describe any step on it.
A worked example
Names are assumed. The Board is assumed to have specified the case for faceless assessment.
- Assignment and notice: the Centre assigns Eastlake Pharma Pvt Ltd's case to an assessment unit, intimates the company, serves a notice under section 268(1) or 270(8) and forwards the response to the unit. All exchanges go through the Centre, exclusively by electronic mode.
- Special audit: the assessment unit finds the accounts complex. Under sub-section (9), the officer in charge of the Centre, if he considers section 268(5) may be invoked, forwards the reference to the Principal Commissioner having jurisdiction and informs the assessment unit. The Principal Commissioner then directs the Assessing Officer having jurisdiction to invoke section 268(5), under sub-section (10).
- Order: otherwise, the assessment unit makes the order in writing after hearing the company and determines the sum payable or refund due.
Need help with a faceless assessment?
In a faceless assessment, everything depends on what is filed through the electronic account and by when. Our team can help you review the notice, prepare responses and track the stage of your case through our legal dispute resolution service.
Key takeaways
- Assessment, reassessment and recomputation under sections 270(10), 271 and 279 are faceless for the cases the Board specifies.
- A National Faceless Assessment Centre manages the case; assessment, verification, technical and review units perform the functions.
- Communications run through the Centre, exclusively by electronic mode, with an exception for enquiry or verification by the verification unit.
- The assessment unit makes the written order after hearing the assessee and may initiate penalty proceedings.
- A case may be transferred to the jurisdictional Assessing Officer at any stage with the prior approval of the Board.
Read next
- Section 274: reference to the Principal Commissioner on an impermissible avoidance arrangement
- Section 269: estimation of value of assets by the Valuation Officer
- Section 279: income escaping assessment
- Chapter XVI: procedure for assessment
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.