Faceless Rectification, Amendments and Notice of Demand

Introduction

The Central Government is empowered to make a scheme for rectification of mistakes apparent from record, other amendments, issue of demand notice and intimation of loss in a faceless manner.

About

1.1. Formation of Scheme

This provision

(a)  Rectification of mistake apparent from record under Section 154;

(b)  Other amendments under Section 155;

(c)  Issuance of notice of demand under Section 156; or

(d)  Intimation of loss under Section 157.

1.2. Purpose of Scheme

Such scheme is to be formed to impart greater efficiency, transparency and accountability by:

(a)  Eliminating the interface between the Income-tax authority and the assessee or any other person to the extent technologically feasible;

(b)  Optimising utilisation of the resources through economies of scale and functional specialisation; and

(c) Introducing a team-based rectification of mistakes, amendment of orders, issuance of notice of demand or intimation of loss, with dynamic jurisdiction.

1.3. Issue of directions

The Central government is empowered to direct that any provision of the Act shall not apply or shall apply with the exceptions, modifications and adaptations specified in the notification. Such directions shall be issued on or before 31-03-2022. Further, every such notification issued by the Central Government shall be laid before each house of parliament.

References

Section 157A provides for Faceless rectification, amendments and issuance of notice or intimation. It is inserted by Section 4 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, with effect from 01-11-2020.

This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.