The CBDT notifies that, Assessment Orders issued by the National Faceless Assessment Centre (NaFAC) u/s 144B of the Income Tax Act, 1961 will not be passed by the National Faceless Assessment Centre (NaFAC) in cases where the pendency could not be created on ITBA due to technical reasons or cases where the taxpayer does not have a PAN, as the case may be.
The CBDT also clarifies that assessments in cases transferred u/s 144B(8) of the Act by the Principal Chief Commissioner or the Principal Director General in charge of the National Faceless Assessment Centre (NaFAC) will be handled according to the procedure outlined in the letter dated September 6, 2021.
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, inserted the Faceless Assessment Scheme, 2019 (the Scheme) into the Act. With effect from April 1, 2021, Section 144B of the Act, relating to Faceless Assessment, has also been added. The Central Board of Direct Taxes, vide Order dated 13th August 2020, read with an order under section 119 of the Act regarding mutatis mutandis application of Orders, Circulars, etc. issued in order to implement the Scheme to Faceless Assessment u/s 144B of the Act, has directed that all Assessment Orders shall be passed by the NaFAC u/s 144B, with the exception of the following:
i. In situations referred to as Central Charges, assessment orders are issued.
ii. Orders of assessment in instances referred to the International Tax Division
In exercise of its authority under section 119 of the Act, the Central Board of Direct Taxes hereby directs that the following exemption be added:
iii. Assessment Orders in cases where a pendency could not be created on ITBA due to technical issues or in cases where the applicant did not have a PAN, as the case may be.