FACELESS ASSESSMENT APPEALS & PENALTY READY RECKONER BY TAXMAMAN Updated Finance Act 2025

This book is a comprehensive and practitioner-oriented guide to India’s newly evolved Faceless Taxation Regime. It deciphers the intricacies of Faceless Assessments, Appeals, and Penalty proceedings under the Income-tax Act 1961. It aims to help readers adapt to cutting-edge digital methods, harness AI/ML tools used by the Tax Department, and effectively respond to statutory notices and compliance requirements step-by-step.

This book is intended for the following audience:

• Tax Practitioners & Chartered Accountants – To navigate and effectively handle the scrutiny, appeals, and penalty proceedings in the Faceless Regime
• Corporate Tax Teams & CFOs – For ensuring accurate and compliant submissions, especially for large or complex cases involving reassessments, appeals, and penalty matters
• Legal Practitioners & Advocates – For building robust representations, leveraging case studies and judicial precedents tailored to faceless scrutiny and appeals
• Students & Academicians – As a reference for understanding how traditional procedures have transformed under the Faceless framework and for in-depth knowledge of practical, real-world scenarios
• Start-ups & MSMEs – To stay informed of essential compliance procedures, especially regarding digital notices, e-proceedings, and the use of AI in risk assessments

The Present Publication is the 8^th Edition | 2025 and amended by the Finance Act 2025. This book is authored by Mayank Mohanka, with the following noteworthy features:

• [Complete Faceless Ecosystem Coverage] Detailed guidance on Faceless Assessments (section 144B), Faceless Appeals, Faceless Penalty proceedings, and other digital compliance schemes (e.g., e-Verification, e-Advance Rulings, e-Settlement)
• [Case Studies & E-Proceeding Snapshots] Step-by-step walk-through of e-Proceedings with actual screenshots from the Income-tax e-filing portal, giving readers a hands-on perspective of how to respond to notices in practice
• [Ready-to-use Draft Submissions] Suggestive replies/e-submissions addressing recurring additions/disallowances (e.g., penny stock LTCG, disallowance under section 14A, denial of new tax regime benefits, AIS-based additions, etc.)
• [Principle of Natural Justice] Comprehensive insights into personal hearing through Video Conferencing, the legal sanctity of show-cause notices (SCNs), and recent judicial precedents clarifying fair opportunity norms
• [Critical Insights on New Reassessment Regime] Thorough explanation of the substituted provisions, ‘information in possession, ‘and limitations. It also includes illustrative scenarios of reopened assessments and robust sample replies
• [International Best Practices] Overview of digital transformation trends in tax administrations worldwide, benchmarked against India’s faceless initiatives

The coverage of the book is as follows:

• Introduction & Legal Framework
  • Evolution of the Faceless Regime, including legislative changes made by the Finance Acts 2022 through 2025
  • Comparison of conventional vs. faceless proceedings
• Practical Guides
  • e-Proceedings Utility – How to file timely and accurate responses, handle attachments within space constraints, and track each stage of assessment digitally
  • Faceless Reassessment – Under the newly introduced provisions of section 148A and beyond
  • Faceless Appeals & Penalty – A close look at the 2021 & subsequent amendment schemes, covering the conduct of appeals, penalty triggers, and the procedure of personal hearings
• Case Studies & Ready Reckoners
  • High-impact issues include disallowance for new tax regime claims, the addition of share capital as unexplained cash credits, penny stocks LTCG, bogus purchases, and more. Each topic includes sample replies and judicial references
  • Coverage of AIS-based scrutiny, foreign bank account addition, mismatch of TDS, property purchases, and intangible adjustments (IND AS)
• Reference Materials & Appendices
  • Full text of the notified schemes (e.g., Faceless Penalty Scheme, e-Assessment of Income Escaping Assessment Scheme, e-Verification Scheme, etc.), accompanied by relevant CBDT circulars and FAQs
  • Summaries of latest case laws highlighting the do’s and don’ts of e-assessment and faceless appeals

The structure of the book is as follows:

• Preface & Introduction – Lays out the goals, background, and impetus for Faceless proceedings, along with a quick reference timeline of the reforms
• Chapters 1–29 – Dedicated to Faceless Assessments, covering every phase—issuance of notices, digital verification of documents, personal hearings via VC, special audits, and best judgment scenarios
• Chapters 30–39 – Focus exclusively on Faceless Appeals, from e-filing of Form 35 to personal hearing requests, bridging representation strategies with relevant case laws
• Chapters 40–41 – Deal with Penalties under the new scheme, highlighting the shift to penalty notices and orders being handled digitally
• Chapters 42–45 – Cover miscellaneous digital schemes (e.g., e-Verification, e-Advance Rulings, e-Settlement) and provide a curated FAQ section on all aspects of Faceless Regime
• Appendices – Contain relevant legislative notifications, official clarifications, and scheme-specific guidelines, ensuring that practitioners have authentic references at hand