The article on outstanding huge tax demand of Income tax dept published in your cityline section is well researched and raises a very important issue. I fully agree that faceless assessment has become one of the main reasons for unnecessary tax disputes. Though its good initiative but it has its own limitations. Earlier, the assessee’s counsel and the Jurisdictional Assessing Officer would sit together and discuss the case. Any doubts were cleared through discussion and the documents were explained properly. This helped the officer understand the facts and pass a fair assessment order on merits. In many cases, taxpayers accepted the tax demand without going in appeal because they were satisfied that their case had been heard properly.

 

Today, everything depends on the documents uploaded on the Income Tax portal. Many times the papers are bulky and some important documents may not get proper attention. There is no personal discussion in almost all cases and no opportunity to explain the facts of the case. Counsel has means to know the view point of faceless assessing officers. The local context is also missing. Since there is no direct interaction with the taxpayer or the counsel, the assessing officer often does not get a complete picture of the case. As a result, the faceless assessment process has become mechanical and rigid. It often leads to high-pitched assessments, huge tax demands and avoidable appeals. So its high time that assessees should also be given the option to choose between local assessment and faceless assessment.