“A. (1) The appeal, as referred to in paragraph 3 of the said Scheme, shall be disposed of under the said Scheme as per
the following procedure, namely:__
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(i) the National Faceless Appeal Centre shall assign the appeal to a specific appeal unit in any one Regional
Faceless Appeal Centre through an automated allocation system;
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(ii) where the appellant has filed the appeal after the expiration of time specified in sub-section (2) of section 249
of the Act, the appeal unit may, —
- (a) in case, it is satisfied that the appellant had sufficient cause for not filing the appeal within the said
time, admit the appeal; or
- (b) in any other case, reject the appeal,
under intimation to the National Faceless Appeal Centre;
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(iii) where the appellant has applied for exemption from the operation of clause (b) of sub-section (4) of section
249 of the Act, the appeal unit may, —
- (a) admit the appeal and exempt the appellant from the operation of provisions of said clause for any good
and sufficient reason to be recorded in writing; or
- (b) in any other case, reject the appeal,
under intimation to the National Faceless Appeal Centre;
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(iv) the National Faceless Appeal Centre shall intimate the admission or rejection of appeal, as the case may be,
to the appellant;
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(v) where the appeal is admitted, —
- (a) the appeal unit may request the National Faceless Appeal Centre to obtain such further information,
document or evidence from the appellant or any other person, as it may specify;
- (b) the appeal unit may request the National Faceless Appeal Centre to obtain a report of the National
e-Assessment Centre or the Assessing Officer, as the case may be, on grounds of appeal or
information, document or evidence filed by the appellant;
- (c) the appeal unit may request the National Faceless Appeal Centre to direct the National e-Assessment
Centre or the Assessing Officer, as the case may be, for making further inquiry under sub-section (4)
of section 250 of the Act and submit a report thereof;
- (d) the National Faceless Appeal Centre shall serve a notice upon the appellant or any other person, as the
case may be, or the National e-Assessment Centre or the Assessing Officer, as the case may be, to
submit such information, document or evidence or report, as the case may be, as may be specified by
the appeal unit or as may be relevant to the appellate proceedings, on a specified date and time;
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(vi) the appellant or any other person, as the case may be, shall file a response to the notice referred to in sub-
clause (d) of clause (v), within the date and time specified therein, or such extended date and time as may be
allowed on the basis of an application made in this behalf, with the National Faceless Appeal Centre;
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(vii) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish a report in
response to the notice referred to in sub-clause (d) of clause (v), within the date and time specified therein or
such extended date and time as may be allowed on the basis of an application made in this behalf, to the
National Faceless Appeal Centre;
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(viii) where response is filed by the appellant or any other person, as the case may be, or a report is furnished by
the National e-Assessment Centre or the Assessing Officer, as the case may be, the National Faceless Appeal
Centre shall send such response or report to the appeal unit, and where no such response or report is filed,
inform the appeal unit;
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(ix) the appellant may file additional ground of appeal in such form, as may be specified by the National Faceless
Appeal Centre, specifying therein the reason for omission of such ground in the appeal filed by him;
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(x) where the additional ground of appeal is filed,-
- (a) the National Faceless Appeal Centre shall send the additional ground of appeal to the National
e-Assessment Centre or the Assessing Officer, as the case may be, for providing comments, if any,
and to the appeal unit;
- (b) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish their
comments, within the date and time specified or such extended date and time as may be allowed on the
basis of an application made in this behalf, to the National Faceless Appeal Centre;
- (c) where comments are filed by the National e-Assessment Centre or the Assessing Officer, as the case
may be, the National Faceless Appeal Centre shall send such comments to the appeal unit, and where
no such comments are filed, inform the appeal unit;
- (d) the appeal unit shall, after taking into consideration the comments, if any, received from the National
e-Assessment Centre or the Assessing Officer, as the case may be, —
- i. if it is satisfied that the omission of additional ground from the form of appeal was not
wilful or unreasonable, admit such ground; or
- ii. in any other case, not admit the additional ground,
for reasons to be recorded in writing and intimate the National Faceless Appeal Centre;
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(xi) the National Faceless Appeal Centre shall intimate the admission or rejection of the additional ground, as
the case may be, to the appellant;
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(xii) the appellant may file additional evidence, other than the evidence produced by him during the course of
proceedings before the National e-Assessment Centre or the Assessing Officer, as the case may be, in such
form, as may be specified by the National Faceless Appeal Centre, specifying therein as to how his case is
covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the Rules.
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(xiii) where the additional evidence is filed,—
- (a) the National Faceless Appeal Centre shall send the additional evidence to the National e-Assessment
Centre or the Assessing Officer, as the case may be, for furnishing a report within the specified date
and time on the admissibility of additional evidence under rule 46A of the said Rules;
- (b) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish the
report, as referred to in sub-clause (a), to the National Faceless Appeal Centre within the date and time
specified, or such extended date and time as may be allowed on the basis of an application made in
this behalf, by the National Faceless Appeal Centre.
- (c) where the report, as referred to in sub-clause (a), is furnished by the National e-Assessment Centre or
the Assessing Officer, as the case may be, the National Faceless Appeal Centre shall send such report
to the appeal unit, and where no such report is furnished, inform the appeal unit;
- (d) the appeal unit may, after considering the additional evidence and the report, if any, furnished by the
National e-Assessment Centre or the Assessing Officer, as the case may be, admit or reject the
additional evidence, for reasons to be recorded in writing, and intimate the National Faceless Appeal
Centre;
- (e) the National Faceless Appeal Centre shall intimate the admission or rejection of additional evidence,
as the case may be, to the appellant and the National e-Assessment Centre or the Assessing Officer, as
the case may be;
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(xiv) where the additional evidence is admitted,—
- (a) the appeal unit shall, before taking such evidence into account in the appellate proceedings, prepare a
notice to provide an opportunity to the National e-Assessment Centre or the Assessing Officer, as the
case may be, within the date and time specified therein to examine such evidence or to cross-examine
such witness, as may be produced by the appellant, or to produce any evidence or document, or any
witness in rebuttal of the evidence or witness produced by the appellant, and to furnish a report
thereof, and send such notice to the National Faceless Appeal Centre;
- (b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon the
National e-Assessment Centre or the Assessing Officer, as the case may be;
- (c) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish the
report, as referred to in sub-clause (a), to the National Faceless Appeal Centre, within the date and
time specified, or such extended date and time as may be allowed on the basis of an application made
in this behalf, by the National Faceless Appeal Centre;
- (d) the National Faceless Appeal Centre shall send the report furnished by the National e-Assessment
Centre or the Assessing Officer, as the case may be, to the appeal unit or where no such report is
furnished, inform the appeal unit;
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(xv) the National e-Assessment Centre or the Assessing Officer, as the case may be, may request the National
Faceless Appeal Centre to direct the production of any document or evidence by the appellant, or the
examination of any witness, as may be relevant to the appellate proceedings;
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(xvi) where the request referred to in clause (xv) is received, -
- (a) the National Faceless Appeal Centre shall send such request to the appeal unit;
- (b) the appeal unit shall consider such request and may, if it deems fit, prepare a notice,–
- i. directing the appellant to produce such document or evidence, as it may specify; or
- ii. for examination of any other person, being a witness;
and send such notice to the National Faceless Appeal Centre;
- (c) the National Faceless Appeal Centre shall serve the notice referred to in sub-clause (b) upon the
appellant or any other person, being a witness, as the case may be;
- (d) the appellant or any other person, as the case may be, shall file his response to the notice referred to in
sub-clause (c), within the date and time specified in the notice or such extended date and time as may
be allowed on the basis of application made in this behalf, to the National Faceless Appeal Centre;
- (e) where a response is filed by the appellant or any other person, as the case may be, the National
Faceless Appeal Centre shall send such response to the appeal unit, or where no such response is filed,
inform the appeal unit;
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(xvii) where the appeal unit intends to enhance an assessment or a penalty or reduce the amount of refund, -
- (a) the appeal unit shall prepare a show-cause notice containing the reasons for such enhancement or
reduction, as the case may be, and send such notice to the National Faceless Appeal Centre.
- (b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon the
appellant.
- (c) the appellant shall, within the date and time specified in the notice or such extended date and time as
may be allowed on the basis of application made in this behalf, file his response to the National
Faceless Appeal Centre.
- (d) where a response is filed by the appellant, the National Faceless Appeal Centre shall send such
response to the appeal unit, or where no such response is filed, inform the appeal unit;
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(xviii) The appeal unit shall, after taking into account all the relevant material available on the record, including
the response filed, if any, by the appellant or any other person, as the case may be, or report furnished by the
National e-Assessment Centre or the Assessing Officer, as the case may be, and after considering any matter
arising out of the proceedings in which the order appealed against was passed, notwithstanding that such
matter was not raised in the appeal, —
- (a) prepare in writing, a draft order in accordance with the provisions of section 251 of the Act; and
- (b) send such order to the National Faceless Appeal Centre along with the details of the penalty
proceedings, if any, to be initiated therein;
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(xix) the National Faceless Appeal Centre shall upon receipt of the draft order, as referred to in sub-clause (a) of
clause (xviii), —
- (a) where the aggregate amount of tax, penalty, interest or fee, including surcharge and cess, payable in
respect of issues disputed in appeal, is more than a specified amount, as referred to in clause (x) of
paragraph 13 of the said Scheme, send the draft order to an appeal unit, other than the appeal unit
which prepared such order, in any one Regional Faceless Appeal Centre through an automated
allocation system, for conducting review of such order.
- (b) in any other case, examine the draft order in accordance with the risk management strategy specified
by the Board, including by way of an automated examination tool, whereupon it may decide to —
- i. finalise the appeal as per the draft order; or
- ii. send the draft order to an appeal unit, other than the unit which prepared such order, in any
one Regional Faceless Appeal Centre through an automated allocation system, for conducting
review of such order;
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(xx) the appeal unit shall review the draft order, referred to it by the National Faceless Appeal Centre, whereupon
it may decide to,–
- (a) concur with the draft order and intimate the National Faceless Appeal Centre about such concurrence;
or
- (b) suggest such variation, as it may deem fit, to the draft order and send its suggestions to the National
Faceless Appeal Centre;
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(xxi) the National Faceless Appeal Centre shall, upon receiving concurrence of the appeal unit, finalise the appeal
as per the draft order;
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(xxii) the National Faceless Appeal Centre shall, upon receiving suggestion for variation from the appeal
unit,assign the appeal to an appeal unit, other than the appeal unit which prepared or reviewed the draft order,
in any one Regional Faceless Appeal Centre through an automated allocation system;
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(xxiii) the appeal unit, to whom appeal is assigned under clause (xxii), shall, after considering the suggestions for
variation,-
- (a) where such suggestions intend to enhance an assessment or a penalty or reduce the amount of refund,
follow the procedure laid down in clause (xvii) and prepare a revised draft order as per the procedure
laid down in clause (xviii); or
- (b) in any other case, prepare a revised draft order as per procedure laid down in clause (xviii);
and send such order to the National Faceless Appeal Centre along with the details of the penalty proceedings, if
any, to be initiated therein;
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(xxiv) the National Faceless Appeal Centre shall after finalising the appeal as per item (i) of sub-clause (b) of
clause (xix) or clause (xxi) or upon receipt of revised draft order as per clause (xxiii),pass the appeal order
and,-
- (a) communicate such order to the appellant;
- (b) communicate such order to the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner as per sub-section (7) of section 250 of the Act;
- (c) communicate such order to the National e-Assessment Centre or the Assessing Officer, as the case
may be, for such action as may be required under the Act;
- (d) where initiation of penalty has been recommended in the order, serve a notice on the appellant calling
upon him to show cause as to why penalty should not be imposed upon him under the relevant
provisions of the Act;
