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Highlights of Faceless Penalty Scheme, 2021.- E-penalty or faceless penalty Scheme, 2021
CBDT Through Notification No. 03/2021 dated 12.01.2021 - has notified Faceless Penalty Scheme, 2021. to provide for the online imposition of e-penalty or faceless penalty by the Tax Authorities. This scheme shall become effective with effect from 13.01.2021. Salient features Faceless Penalty Scheme, 2021 are mentioned below:
1. For e-penalty, in line with e-assessment centers, Faceless Penalty Centres - National Faceless Penalty Centre and Regional Faceless Penalty Centres will be created. Under each Regional Faceless Penalty Centres, ‘Penalty Units’ and ‘Penalty Review Units’ will be created to conduct the penalty proceedings.
3. All communication between Penalty review units & Penalty units & Assessee or Tax authority or any other person shall be via “National Faceless Assessment Centre” only & in Online mode only.
4. The Board for the purposes of this Scheme shall, until the date on which the National Faceless Penalty Centre or the Regional Faceless Penalty Centres, the penalty units or the penalty review units are set up, direct the National Faceless Assessment Centre, Regional Faceless Assessment Centre, assessment unit and review unit to also act as the National Faceless Penalty Centre, Regional Faceless Penalty Centre, the penalty unit and the penalty review unit, respectively.
5. National Faceless Appeal Centre shall have the power to initiate penalty proceedings & issue an SCN for recommended initiation of penalty proceedings or imposition of penalty.
6. National Faceless Appeal Centre is empowered to pass the appeal order.
