What are the Exception to Faceless Assessment Scheme?

The CBIC has now issued an Order F.No. 187/3/2020-ITA-I dated 13th August 2020 read with order under section 119 of the Income-tax Act,1961 by keeping the main point intact and making necessary change to implement the Scheme to Faceless Assessment u/s 144B of the Act. All the Assessment orders shall be passed by the National Faceless Assessment centre (NFAC),

1. NFAC will be direct communication between Assessee and Regional e-Assessment Centre. Any one Regional e-Assessment Centre will be selected based on Automated Allocation System.
2. Assessment Unit (Unit) shall prepare a draft Assessment Order by seeking Information from the third party, Verification Unit or Technical Unit via NFAC.
3. NFAC to examine the draft Assessment order, issues show cause notice if there are any variations found between Returns filed and assessed.
4. Assessee is given opportunity to respond to the notice within time limit. In a case where no response to the show-cause notice is received, finalise the assessment as per the draft assessment order and actions will be taken as per final draft assessment.

However few exceptions are,

1. Assessment orders in cases assigned to Central Charges - central charges such as Search cases, foreign tax and research, Survey cases (only when Materials are impounded)
2. Assessment orders in cases assigned to International Tax Charges- Cases regarding Non-Resident and Foreign Companies are outside the purview of The Faceless Assessment Scheme.
3. Assessment orders in cases where pendency could not be created on ITBA portal because of technical reasons or cases not having a PAN, as the case may be.
4. Assessment order which requires to be done again or to be done u/s 147 of the Act (Reassessment as per Assigning Officer) for which time limit expires on 30.9.2021

Conclusion

When Assessee receives any intimation regarding returns filed, all the details have to be shared to National Faceless Assessment centre through online mode. However, there are exceptions, when Survey has to conducted or when assessment orders are given to Non-Resident and Foreign Companies or where pendency could not be created on ITBA.