Penalty proceeding after faceless E-assessment proceeding order
Now, after e-assessment proceeding, the penalty proceeding is also proposed to be carried out in e-proceeding mode only. Earlier, normally the assessment order was immediately followed by the simultaneous penalty notice. However, the procedure is slightly changed after the present faceless penalty centre. It will be as per the new faceless penalty scheme.
Under earlier regime, Jurisdictional AO used to issue all Notices under section 274 read with 270A for want of further information/documents/records from the assessee for imposition of the penalty. But now, National Faceless Penalty Centre (NFPC) may issue appropriate notice or requisition u/s 274 read with 270A, to the assessee or NFAC/AO, for obtaining any further information, documents or evidence, as required by the Penalty Unit in the Regional Faceless Penalty Centre, to which the penalty proceedings has been assigned by the NFPC.
In earlier regime, there was no provision of passing a Draft Penalty Order. However, in the new NFPC scheme, Draft Penalty Order is to be passed by the Penalty unit in the Regional Faceless Penalty Centre, to which the penalty proceedings have been assigned by NFPC. This Draft Penalty Order shall be examined by NFPC based on Risk Management Parameters and this draft Penalty Order may be sent by NFPC for Review to a Penalty Review Unit. The penalty review unit shall review the proposal of penalty unit, whereupon it may agree in totality or may or suggest modification to or such other proposal with reasons to be recorded in writing and intimate the National Faceless Penalty Centre. Where the penalty review unit concurs with the proposal of penalty unit, the National Faceless Penalty Centre shall pass the Final Penalty Order. Where the penalty review unit suggests modification, the National Faceless Penalty Centre shall assign the case to a specific penalty unit, other than the original penalty unit in any one of the Regional Faceless Penalty Centres through an automated allocation system.
It is ensured that all the communication between the assessee and the NFPC is to be done exclusively through Electronic Mode via the ‘e-Proceedings’ functionality in the ITBA Module. The assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the penalty unit under this Scheme. However, the Chief Commissioner or the Director General, in charge of the Regional Faceless Penalty Centre, under which the concerned appeal unit is set up, may approve the request for personal hearing, if he is of the opinion that the request is covered by the circumstances as may be notified by CBDT.
In case, the request for personal hearing has been approved by the Chief Commissioner or the Director General, in charge of the Regional Faceless Penalty Centre, such hearing shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board.
Different Penalty Proceedings Hierarchy under the NFPC
For the purpose of conducting of the penalty proceedings in a faceless manner, the different hierarchy proposed are a sunder:
(i) a National Faceless Penalty Centre to facilitate the conduct of faceless penalty proceedings in a centralised manner and vest it with the jurisdiction to impose penalty in accordance with the provisions of this Scheme;
(ii) Regional Faceless Penalty Centres, as it may deem necessary, to facilitate the conduct of faceless penalty proceedings, which shall be vested with the jurisdiction to impose penalty in accordance with the provisions of this Scheme;
(iii) Penalty Units, as it may deem necessary, to facilitate the conduct of faceless penalty proceedings, to perform the function of drafting penalty orders, which includes identification of points or issues for imposition of penalty under the Act, seeking information or clarification on points or issues so identified, providing opportunity of being heard to the assessee or any other person, analysis of the material furnished by the assessee or any other person, and such other functions as may be required for the purposes of imposing penalty;
(iv) Penalty Review Units, as it may deem necessary, to facilitate the conduct of faceless penalty proceedings, to perform the functions of review of draft penalty order, which includes checking whether the relevant material evidence has been brought on record, whether the relevant points of fact and law have been duly incorporated in the draft order, whether the issues on which penalty is to be imposed have been discussed in the draft order, whether the applicable judicial decisions have been considered and dealt with in the draft order, checking arithmetical correctness of computation of penalty, if any, and such other functions as may be required for the purposes of review, and specify their respective jurisdiction.
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