Quick Answer
16 min read|Updated: Apr 1, 2026|Income-tax
Featured Answer: The Income Tax Act 2025 codifies faceless assessment and appeals as the statutory default for income tax proceedings in India. All scrutiny assessments and first appeals (before CIT(A)) are conducted electronically through the National Faceless Assessment Centre (NFAC), with random case allocation eliminating territorial jurisdiction.
6. Taxpayer Rights in Faceless Proceedings
The 2025 Act enshrines several fundamental rights for taxpayers participating in faceless proceedings, rooted in the principles of natural justice:
- Right to be Heard: No adverse order can be passed without giving the taxpayer an opportunity to present their case. This includes the right to submit written arguments, evidence, and legal authorities.
- Right to Submit Evidence: Taxpayers can upload documents, affidavits, sworn statements, and other evidence through the e-filing portal at every stage of the proceedings.
- Right to Receive Draft Order: Before any order prejudicial to the taxpayer is finalised, a draft order or show cause notice must be served, giving the taxpayer adequate time to respond.
- Right to Respond Before Adverse Order: The taxpayer must be given a minimum period (typically 15 days) to respond to any proposed addition, disallowance, or adverse finding.
- Right to Video Conference: Upon request, the taxpayer or authorised representative can present oral arguments through video conferencing.
- Right to Adjournment: Taxpayers can request adjournment (extension of time) for valid reasons through the e-filing portal.
- Right to Authorised Representative: Taxpayers can appoint a Chartered Accountant, Advocate, or other authorised representative to handle the proceedings on their behalf.
7. Technical Requirements & Portal Navigation
Effective participation in faceless proceedings requires familiarity with the e-filing portal and its technical requirements:
- E-Filing Portal Login: Access via incometax.gov.in using PAN and password or Aadhaar OTP
- PAN-Aadhaar Linking: Mandatory for portal access — unlinked PANs become inoperative
- Digital Signature Certificate (DSC): Optional for individuals but recommended for companies and firms. Certain submissions may require DSC for authentication.
- Document Upload Limits: Individual file size limit typically 10 MB per attachment, with a total limit per submission. Large documents should be split into indexed parts.
- Supported Formats: PDF (preferred), JPEG, PNG for images, ZIP for multiple files. Always use searchable PDFs rather than scanned images where possible.
- Response Module: Navigate to Pending Actions > E-Proceedings on the e-filing portal to view and respond to notices
- Email Notifications: Keep your registered email and mobile number updated — all notices trigger email and SMS alerts
8. Common Practical Issues & Solutions
Portal Downtime
The e-filing portal occasionally experiences downtime, particularly during peak filing periods. If you are unable to submit a response due to portal issues, immediately file an adjournment request. Document the downtime with timestamps and screenshots. The CBDT has directed that taxpayers should not be penalised for portal-related technical glitches. Despite this, maintain a proactive approach — do not wait until the last day to submit responses.
Large Document Uploads
When dealing with voluminous records (ledgers, bank statements, property documents), the upload size limits can be restrictive. Solutions include: compressing PDF files, splitting large documents into indexed parts (Part 1 of 5, Part 2 of 5, etc.), using ZIP archives, and providing a clear index document listing all uploaded files with descriptions.
Complex Matters in Writing
Some matters — valuation issues, complex business transactions, family arrangements — are difficult to explain purely in writing. In such cases, request a video conference hearing. Prepare a structured presentation, and submit a written summary before the hearing so the officer has context. After the hearing, submit a written note confirming what was discussed.
Non-Receipt of Notices
Notices may end up in spam folders or may not be received due to outdated email addresses. Regularly check the e-filing portal for pending actions. Update your email and mobile number on the portal proactively. Non-response to notices can result in ex-parte (best judgment) assessment orders, which are significantly harder to challenge.
For understanding potential penalties and interest that may arise from delayed responses or non-compliance, consult our dedicated guide.
9. Best Practices for Faceless Proceedings
| Do | Don’t |
|---|---|
| Submit clear, structured written submissions with paragraph numbering | Submit unstructured or vague responses |
| Cite relevant case laws, CBDT circulars, and statutory provisions | Make verbal arguments without written record |
| Create an indexed document list for all uploads | Upload documents without proper naming or indexing |
| Respond within time or request adjournment early | Ignore notices or respond on the last day |
| Request video conference for complex matters | Assume written submissions alone will suffice for complex issues |
| Keep screenshots of all submissions and portal confirmations | Rely solely on the portal to maintain your records |
| Cross-reference AIS data before responding to mismatches | Accept AIS data without verification |
| Engage a qualified CA or advocate for substantive issues | Handle complex assessments without professional help |
10. Faceless vs Face-to-Face — Detailed Comparison
| Parameter | Faceless Proceedings | Face-to-Face Proceedings |
|---|---|---|
| Jurisdiction | Random allocation via NFAC — no territorial AO | Territorial AO based on address/ward |
| Communication | E-filing portal and registered email only | Physical letters, in-person meetings, phone |
| Physical Appearance | Not required — video conferencing on request | Required at AO’s office |
| Anonymity | Taxpayer and AO identities not disclosed to each other | Both parties know each other |
| Document Submission | Electronic upload on portal | Physical and electronic |
| Draft Order Review | Mandatory review by independent Review Unit | No mandatory independent review |
| Transparency | Full audit trail on portal — all actions logged | Limited documentation of interactions |
| Corruption Risk | Minimal — no direct taxpayer-AO contact | Higher — direct personal interaction |
| Applicable Cases | All cases except excluded categories | Search/seizure, international tax, Black Money, Benami |
11. Typical Timeline from Notice to Order
| Phase | Duration (Typical) | Statutory Limit | Remarks |
|---|---|---|---|
| CASS selection to notice | 1-3 months | Notice within 6 months of AY end | Notice for AY 2026-27 typically by Sep 2027 |
| Initial response period | 15-30 days | As specified in notice | Adjournment possible on valid grounds |
| Query-response rounds | 3-9 months | No separate limit per round | Depends on case complexity |
| Draft order and review | 1-2 months | Within overall limit | Internal process within NFAC |
| Show cause + taxpayer response | 15-30 days | Minimum 15 days to respond | Critical stage — thorough response needed |
| Final order | 1-2 months post response | 12 months from AY end (extendable by 6) | Total time limit for completing assessment |
| Total estimated duration | 6-18 months | 12-18 months from AY end | Varies significantly by case |
12. ITAT Appeals — Beyond the Faceless System
Appeals before the Income Tax Appellate Tribunal (ITAT) are NOT part of the faceless system. ITAT is a quasi-judicial body that functions independently of the income tax department, and its proceedings follow a different structure.
Key Points About ITAT Appeals
- Physical Hearings: ITAT hearings are conducted at designated benches across India. The taxpayer or authorised representative appears before a judicial member and an accountant member.
- Virtual Hearing Option: Post-pandemic, ITAT has institutionalised virtual hearing options. Both parties can appear via video conferencing, reducing the need for physical travel.
- Appeal Filing: Form 36 is filed before the ITAT bench having jurisdiction over the area where the AO is located (not necessarily where the taxpayer resides).
- Time Limit: 60 days from date of receipt of the CIT(A) order.
- Cross-Objection: The respondent (department or taxpayer, as the case may be) can file cross-objections within 30 days of notice of the appeal.
- Hearing Procedure: Both sides present written submissions and oral arguments. The ITAT may also hear matters on admission before regular hearing.
For complete guidance on ITAT appeals and higher appellate procedures, refer to our detailed guide on income tax appeals — CIT(A) & ITAT procedure. For professional representation, visit our income tax appeal services.
13. Expert Guidance
- Start preparing your response the day you receive the notice — do not wait until the deadline approaches. The faceless system is unforgiving of delayed responses.
- Every submission should have a clear structure: issue identification, facts, taxpayer’s position, legal basis (with section references and case laws), and conclusion. Number every paragraph.
- Create a comprehensive document index for all uploads. Label files clearly (e.g., “Bank Statement – SBI A/c xxxx1234 – April 2025 to March 2026.pdf”).
- For high-value additions proposed in the draft order, always request a video conference hearing. Written submissions alone may not convey the nuances of your position.
- Maintain a parallel record of every submission — download and save the acknowledgement receipt from the portal after each upload.
- If the proposed addition involves interpretation of law or disputed facts, engage a specialist tax advocate early. The faceless CIT(A) appeal is your best chance to get relief before incurring the cost and time of ITAT proceedings.
- Faceless assessment is now the statutory default under the 2025 Act — all scrutiny cases (except specified exclusions) go through NFAC
- The process is fully electronic with no physical interaction between taxpayer and assessing officer
- Random case allocation eliminates territorial jurisdiction and reduces corruption risks
- Taxpayers have a statutory right to be heard, receive draft orders, and respond before adverse orders are passed
- Video conferencing is available on request for oral arguments in both assessment and appeal stages
- Search/seizure, transfer pricing, Black Money Act, and Benami cases remain outside the faceless system
- ITAT appeals are not faceless but offer virtual hearing options
- Quality of written submissions is the single most important factor in faceless proceedings outcomes
For assistance with faceless assessment or appeal proceedings, reach out to our team at Virtual Auditor. Understanding the correct ITR filing due dates and choosing the right tax regime from the outset can help prevent scrutiny selection. For understanding TDS compliance that triggers information mismatches, see our TDS rate chart for AY 2026-27.
Frequently Asked Questions
What is faceless assessment under the Income Tax Act 2025?
Faceless assessment is a system where income tax scrutiny assessments are conducted electronically through the National Faceless Assessment Centre (NFAC) without any physical interaction between the taxpayer and the assessing officer. Cases are randomly allocated to Assessment Units across India, eliminating territorial jurisdiction. All communication happens through the e-filing portal and registered email. This system is now a statutory default under the Income Tax Act 2025.
Can I request a personal hearing in faceless assessment proceedings?
Yes. Taxpayers have the right to request a personal hearing via video conferencing during faceless assessment proceedings. The request should be made through the e-filing portal. While written submissions are the primary mode of communication, video conferencing is available for oral arguments, especially when the matter involves complex factual or legal issues that are difficult to explain in writing.
Which cases are excluded from faceless assessment?
The following cases are excluded from faceless assessment and continue with jurisdictional (face-to-face) proceedings: search and seizure cases under sections 132/132A, international tax and transfer pricing cases under section 92CA, cases under the Black Money (Undisclosed Foreign Income and Assets) Act, Benami transaction cases under the Prohibition of Benami Property Transactions Act, and central charges involving major fraud investigations.
How do I file an appeal against a faceless assessment order?
Appeal against a faceless assessment order is filed in Form 35 through the e-filing portal before the Commissioner of Income Tax (Appeals) or CIT(A). The appeal must be filed within 30 days of receiving the assessment order. The first appeal itself is handled through the faceless appeal mechanism under NFAC, with random allocation to Appeal Units. You must pay the disputed tax or file a stay petition before or along with the appeal.
What is the role of NFAC in the faceless system?
The National Faceless Assessment Centre (NFAC) is the centralised hub that manages the entire faceless assessment and appeal process. It receives cases selected for scrutiny through CASS, randomly allocates them to Assessment Units across India, coordinates communication between the taxpayer and various units (Assessment, Verification, Technical, and Review Units), ensures draft orders are reviewed before finalisation, and delivers final orders electronically to taxpayers.
How long does a faceless assessment typically take from notice to order?
A faceless assessment typically takes 6 to 18 months from the issuance of the initial scrutiny notice to the final assessment order. The statutory time limit for completing an assessment is 12 months from the end of the assessment year in which the notice was issued (extendable by 6 months in certain cases). However, actual timelines depend on the complexity of the case, the taxpayer’s response time, and the number of information requests issued.
Is the ITAT appeal process also faceless?
No. Appeals before the Income Tax Appellate Tribunal (ITAT) are NOT faceless. ITAT hearings continue with physical or virtual hearings before the tribunal bench. However, ITAT has introduced virtual hearing options where both parties can appear via video conferencing. The ITAT is a quasi-judicial body independent of the tax department, and its proceedings follow a different structure than the administrative faceless system.
What happens if the e-filing portal is down during a faceless assessment response deadline?
If the e-filing portal experiences technical issues or downtime during your response deadline, you should immediately file an adjournment request through the portal (if accessible) or email the NFAC. Document the portal downtime with screenshots and error messages. The CBDT has issued directions that technical glitches on the portal should not prejudice taxpayers, and the time limit may be extended. Keep records of all downtime incidents for your files.
Can a faceless assessment order be passed without giving the taxpayer an opportunity to be heard?
No. The principles of natural justice are embedded in the faceless assessment scheme. The taxpayer must be served a show cause notice or draft assessment order before any adverse order is passed. The taxpayer gets an opportunity to respond to the draft order, submit additional evidence, and request a video conference hearing. If an order is passed without providing such opportunity, it can be challenged as void on grounds of violation of natural justice.
What documents should I keep ready for a faceless assessment proceeding?
Key documents include: the original ITR filed with all schedules and computation, Form 16/16A and TDS certificates, bank statements for all accounts, investment proofs for deductions claimed (80C, 80D, etc.), capital gains computation with purchase/sale documents, rental agreements and property documents, business books of account and audit reports (if applicable), loan statements, gift deeds, and any other documents supporting the income and deductions declared in your return.
