The Honourable Prime Minister Narendra Modi, on 13^th August 2020 announced the ‘Transparent Taxation’ platform which comprises these four main reforms; taxpayer’s charter, faceless appeals scheme, faceless assessment scheme, and expansion of scope reporting of transactions. These reforms come in light of the government's extensively promoted object of an efficient and transparent tax administration.

The Faceless Appeal Scheme 2020 was notified through notification No. 76/2020 on 25^th September 2020. This notification provided a structure for disposal of appeals by the Commissioner of Income Tax Appeals.  This appeal comes with an aim to reduce the personal interface between taxpayers and tax officials. Here, the appeals would be allocated in a random manner to any tax official in the country. The territorial jurisdictions of the Commissioner of Income Tax Appeals would be eliminated and they would have jurisdiction throughout the country with regard to appeals coming under the faceless appeal scheme. The identity of the officer deciding on the appeal would remain unknown and taxpayers are not required to have any physical interface with the officials.

The Faceless Appeal Scheme applies to all appeals filed before the Commissioner of Income Tax Appeals, with the exception of appeals relating to major tax evasion, serious fraud, sensitive and search issues, international taxation and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. This scheme shall be applicable to people who have appealed under Section 246A(1) or Section 248 of the Income Tax Act, 1961.

Several units have been introduced under this scheme, namely:

• National Faceless Appeal Centre.

• Regional Faceless Appeal Centres.

• Appeal Units.

The function of these units is mainly to facilitate the conduct of e-appeal proceedings in a centralized manner.

The scheme also provides for the procedure that needs to be followed for the disposal of appeals. The appeals shall be allocated in a random manner to any appeal unit by the National Faceless Appeal Centre. The Appeal Units may obtain necessary information and documentation from the taxpayer, or reports from tax officers and make further necessary inquiries. After due consideration of all such submissions, these units shall pass along a draft order regarding the appeal to the National Faceless Appeal Centre. After which the NFAC shall send the draft order to any appeal unit other than the one which issues the draft order, through an automated allocation system for the purpose of reviewing the order. In some cases, the draft orders may also be reviewed by using artificial intelligence and machine learning. After the order has been finalized, a copy shall be sent to the taxpayer concerned, the Principal Chief Commissioner or Principal Commissioner or Commissioner. If a penalty has been imposed in the order, a notice shall be served on the taxpayer asking to show cause as to why such a penalty should not be imposed. Any further appeal of orders passed under this scheme by the NFAC will lie before the Income Tax Tribunal.  All communications between these several channels shall happen electronically. All taxpayers shall be notified of all such communications through their registered e-filling account or registered e-mail address. The information would be also be uploaded on the IT department's mobile application.

This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.