**Report on the Faceless Penalty Amendment Scheme, 2022**
**1. Executive Summary:**
This report analyzes the Faceless Penalty Amendment Scheme, 2022, as notified by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance. The amendment modifies the Faceless Penalty Scheme, 2021, aiming to refine the penalty imposition and review processes. Key changes include the removal of the explicit vesting of jurisdiction to impose penalties within paragraph 4, a restructuring of the penalty imposition procedure through clauses xv to xxii, and modifications regarding authentication of electronic records. The amendment primarily affects Assessing Officers, penalty units, penalty review units, the National Faceless Penalty Centre, and assessees subject to penalties under the Income-tax Act, 1961. The likely outcome is a more streamlined and centralized penalty process.
**2. Introduction:**
This report aims to provide an informative overview of the Faceless Penalty Amendment Scheme, 2022, based solely on the text of the official notification. The analysis focuses on the changes introduced by the amendment, their implications, and potential impact on stakeholders.
**3. Policy Overview:**
* This is an amendment to the Faceless Penalty Scheme, 2021.
* The core objective, inferred from the text, is to refine and streamline the faceless penalty proceedings under the Income-tax Act, 1961. This involves clarifying roles, removing redundancies, and centralizing certain processes through the National Faceless Penalty Centre.
**4. Background and Rationale:**
The amendment likely aims to address perceived inefficiencies or ambiguities in the original Faceless Penalty Scheme, 2021. Specifically, the changes suggest a move towards a more centralized process with clearer delineation of responsibilities. The removal of the explicit vesting of jurisdiction to impose penalties within paragraph 4, and the restructuring of clauses xv to xxii indicate that the previous scheme may have lacked clarity in the penalty imposition process, necessitating these modifications. It seems the intent is to create a more uniform and efficient system under the National Faceless Penalty Centre.
**5. Key Provisions / Changes:**
This section details the key changes introduced by the Faceless Penalty Amendment Scheme, 2022:
* **Paragraph 4 (Assessment Unit):**
* *Change:* The amendment removes the clause stating that the assessment unit is vested with jurisdiction to impose penalty. It also substitutes references to "Regional Faceless Penalty Centres" with Assessing Officer having powers assigned by the Board.
* *Effect:* This centralizes the penalty process and potentially aims to remove ambiguity regarding jurisdiction, assigning these powers directly to Assessing Officers designated by the board. This seems to indicate a move away from regional centers as the primary entities responsible for penalty imposition.
* **Paragraph 5 (Penalty Imposition Process):**
* *Change:* Clauses xv to xxii are entirely substituted. The new clauses detail the process of penalty imposition, review, and communication through the National Faceless Penalty Centre. This includes procedures for proposing penalty imposition/non-imposition, review by a penalty review unit, and the final order by the penalty unit.
* *Effect:* This significantly alters the penalty imposition process. The process now involves a proposal by the penalty unit, potential review by a penalty review unit, and a central role for the National Faceless Penalty Centre in coordinating the process and communicating with the assessee. This establishes a more structured and controlled workflow for penalty proceedings.
* **Paragraph 6:**
* *Change:* This paragraph is omitted.
* *Effect:* The function or provision described in paragraph 6 is no longer a part of the faceless penalty scheme, but without more context, it is impossible to deduce what the specific effects of removing paragraph 6 would be.
* **Paragraph 8:**
* *Change:* The words "Regional Faceless Penalty Centres" are omitted.
* *Effect:* This change further emphasizes the shift away from regional centers and towards a more centralized system.
* **Paragraph 9 (Authentication of Electronic Record):**
* *Change:* The paragraph is substituted to clarify the authentication methods for electronic records.
* *Effect:* This modernizes the authentication process by including digital signatures and electronic verification codes, enhancing the integrity and security of electronic records within the faceless penalty system.
* **Paragraph 11 (Personal Hearing):**
* *Change:* Subparagraphs 3 and 4 are substituted to specify that personal hearings are conducted exclusively through video conferencing or video telephony, to the extent technologically feasible, and through the National Faceless Penalty Centre.
* *Effect:* This promotes the use of technology to conduct personal hearings and facilitates centralized control, making the process more efficient and transparent.
* **Paragraph 12:**
* *Change:* The words "the Regional Faceless Penalty Centre," are omitted, and clause ix is omitted.
* *Effect:* This finalizes the removal of regional entities from the scheme.
**6. Target Audience and Stakeholders:**
Based on the text, the primary stakeholders affected by these changes are:
* Assessing Officers
* Penalty units
* Penalty review units
* National Faceless Penalty Centre
* Assessees subject to penalties under the Income-tax Act, 1961
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** Central Board of Direct Taxes (CBDT) and the National Faceless Penalty Centre. The CBDT issues guidelines for the process.
* **Timelines/Procedures:** The amendment comes into force on the date of its publication in the Official Gazette (May 27, 2022). Specific procedures for penalty imposition and review are detailed in the amended clauses xv to xxii of paragraph 5. The National Faceless Penalty Centre plays a key role in coordinating these procedures.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes are:
* A more streamlined and efficient faceless penalty process.
* Increased transparency through centralized coordination and communication via the National Faceless Penalty Centre.
* Greater clarity regarding the roles and responsibilities of different units involved in the penalty proceedings.
* Improved standardization of penalty imposition and review processes.
* Greater adoption of technology in conducting personal hearings.
**9. Conclusion:**
The Faceless Penalty Amendment Scheme, 2022, represents a significant refinement of the original Faceless Penalty Scheme, 2021. The amendments focus on streamlining the penalty imposition and review processes, centralizing control through the National Faceless Penalty Centre, and promoting the use of technology. These changes are likely to impact assessing officers, penalty units, review units, and assessees, potentially leading to a more efficient, transparent, and standardized penalty system.
Key Entities Referenced
NEW DELHI: Capital of India, place of publication of the gazette.
Incometax Act, 1961: An act of the parliament of India concerning Income Tax
Central Government: The executive authority of India
Faceless Penalty Scheme, 2021: A scheme by the Central Government related to imposition of penalty under the Incometax Act, 1961.
Faceless Penalty Amendment Scheme, 2022: A scheme to amend the Faceless Penalty Scheme, 2021.
Central Board of Direct Taxes: A department under the Ministry of Finance
Ministry of Finance: A ministry of the Government of India.
Department of Revenue: A department under the Ministry of Finance.
National Faceless Penalty Centre: An entity established for the Faceless Penalty Scheme.
penalty unit: An Assessing Officer having powers assigned by the Board for imposing penalty.
penalty review unit: An Assessing Officer having powers assigned by the Board for review.
Government of India Press, Ring Road, Mayapuri, New Delhi110064: A printing press.
Controller of Publications, Delhi110054: The publisher of the Gazette of India
SHEFALI SINGH: Under Secretary, Tax Policy and Legislation
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअID.-E2x7xx0 52022-236054
CG-DL-E-27052022-236054
असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 2299] नई ददल्ली, िक्रा िार, ंई 27, 2022/ज् ष्े ठ 6, 1944
No. 2299] NEW DELHI, FRIDAY, MAY 27, 2022/JYAISHTHA 6, 1944
जित्त ं्ं ाल
(रािस्ट्ि जिभाग)
(केन्दर ी प्रत् क्ष कर ोरडड)
अजधसचू ना
नई ददल् ली, 27 ंई, 2022
(आ -कर)
का.आ. 2425(अ).—केंरी सरकार, आ -कर अजधजन ं, 1961 (1961 का 43) की धारा 274 की उपधारा
(2क) द्वारा प्रदत्त िजि ों का प्र रग करते हुए, पहचान जिहीन िाजस्ट् त स्ट् कीं, 2021 का जनम्न जलजखत संिरधन करती ह,ै
अथाडत ् :-
1. संजक्ष प्त नां और प्रारंभ.- (1) इन स्ट् कीं का नां पहचान जिहीन िाजस्ट् त (संिरधन) स्ट् कीं, 2022 ह ै।
(2) े रािप् ं ेंइसके प्रकािन की तारीख कर प्रिृत् त हरगी ।
2. पहचान जिहीन िाजस्ट् त स्ट् कीं, 2021 ं,ें -
(i) पैरा 4 ं,ें -
(अ) उप-पैरा (1) ं,ें -
(I) खंड (i) “और इसं ें इस स्ट्क ीं के उपोंधों के अनासार िाजस्ट् त अजधररजपत की अजधकातरता जनजहत ह”ै िब् दों का
लरप दक ा िाएगा।
3549 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(II) खंड (ii) का लरप दक ा िाएगा।
(III) खडं (iii) ं ें “िर िाजस्ट्त अजधररजपत करन े के प्र रिनों के जलए आि क हर” िब्द ों के स्ट्थ ान पर “िर िाजस्ट्त
अजधररजपत करन े के प्र रिनों के जलए अपेजक्ष त हर और “िाजस्ट् त इकाई” पद िहां कहीं इस स्ट्क ीं ंें प्र ा त हुआ ह,ै
दकसी जनधाडरण अजधकारी जिसके पास ोरडड द्वारा संनादेजित िजत ां हों, के प्रजत जनदेि हरगा ” िब्द रखे िाएंग े ।
(IV) खंड (iv) ं,ें “और ऐसे अन्द कृत् िर पना ्िलरकन के प्र रिनों के जलए आि क हों, और उससे संोंजधत
अजधकातरता कर जिजनर्ददष् ट करेगा” िब् दों के स्ट् थान पर “और ऐसे अन्द कृत् िर पान्िलरकन के प्र रिनों के जलए
अपेजक्ष त हों और “िाजस्ट् त पान्िलरकन इकाई” पद िहां कहीं इस स्ट् कीं ंें प्र ा त हुआ ह ै , दकसी जनधाडरण
अजधकारी जिसके पास ोरडड द्वारा संनादेजित िजत ां हों, के प्रजत जनदेि हरगा ” िब् द रखे िाएंगे ।
(आ) उप-पैरा (4) ं,ें “क्ष े्ी पहचान जिहीन िाजस्ट् त केंरों”, “क्ष े्ी पहचान जिहीन जनधाडरण केंर” और “क्ष े्ी
पहचान जिहीन िाजस्ट् त केंर” िब्द ों का लरप दक ा िाएगा;
(ii) पैरा 5 ं,ें उप-पैरा (1) ं,ें -
(अ) खंड (ii) ं,ें “क्ष े्ी पहचान जिहीन िाजस्ट् त केंरों ं ेंसे दकसी एक ंें” िब् दों का लरप दक ा िाएगा;
(आ) खंड (xv) से खंड (xxii) के स्ट् थान पर जनम्न जलजखत खडं रखे िाएंग,े अथाडत् :-
“(xv) िाजस्ट् त इकाई, अजभलेख पर रखी गई सांग्री, जिसके अंतगतड खंड (viii), खंड (x) और खडं (xii) ं ें था
जनर्ददष् ट प्रस्ट् तता दक ा ग ा प्रत् ात्त र भी ह,ै दद करई हर ा खंड (xiv) ं ें तरपरट,ड दद करई हर, पर जिचार करन े के
प चात,् जनम्न जलजखत के प्र रिन हते ,ा -
(क) िाजस्ट् त अजधररजपत करन ेऔर ऐसी िाजस्ट्त के अजधररपण के जलए प्रस्ट्त ाि तै ार करन े के जलए;
(ख) िाजस्ट् त अजधररजपत न करन े के जलए, कारणों कर
लेखोद्ध करत े हुए, थाजस्ट् थजत, ऐस े िाजस्ट् त अजधररपण प्रस्ट् ताि ा कारणों कर, राष्र ी पहचान जिहीन िाजस्ट् त केंर
कर भेिेगा;
(xvi) राष्र ी पहचान जिहीन िाजस्ट् त केंर, ोरड डद्वारा िारी ंागडदिडक जसद्धांतों के अनासार, -
(क) ऐसी दिा ं,ें िहा ंिाजस्ट्त अजधररजपत करन ेका प्रस्ट्त ाि दक ा ग ा ह,ै खडं (xv) के उप-खडं (क) ं ेंजनर्ददष्ट िाजस्ट्त
अजधररपण प्रस्ट्त ाि के अनासार िाजस्ट् त आदेि पातरत करन े के जलए िाजस्ट् त इकाई कर संसूजचत कर सकेगा; ा
(ख) ऐसी दिा ं,ें िहां िाजस्ट् त अजधररजपत न करने का प्रस्ट् ताि दक ा ग ा ह,ै थाजस्ट् थजत, जनधाडतरती ा दकसी अन्द
व् जत कर संसूचना देत ेहुए िाजस्ट् त का डिाजह ां ड़रेन े हते ा िाजस्ट् त इकाई कर संसूजचत कर सकेगा; ा
(ग) थाजस्ट् थजत, ऐस ेप्रस्ट्त ाि ा कारणों का पना ्िलरकन करन ेके जलए स्ट्ि चाजलत आोटं न प्रणाली के ंा् ं स ेिाजस्ट्त
पान्िलरकन इकाई कर सौंप सकेगा;
(xvii) िाजस्ट् त इकाई, खंड (xvi) के उप-खंड (क) ं ें जनर्ददष् ट ंांले ं ें िाजस्ट् त अजधररजपत करने का आदेि पातरत
करेगा और उसे जनधाडतरती पर राष्र ी पहचान जिहीन िाजस्ट् त केंर के ंा् ं से तांील करेगी ;
(xviii) िाजस्ट् त इकाई, खडं (xvi) के उप-खंड (ख) ं ें जनर्ददष् ट ंांल े ं,ें िाजस्ट् त का िड ाजह ां ड़रेेगी और
जनधाडतरती कर राष्र ी पहचान जिहीन िाजस्ट् त केंर के ंा् ं से संसूचना भेिेगी ;
(xix) िाजस्ट्त पान्िलरकन इकाई, खंड (xvi) के उप-खंड (ग) ं ें थाजनर्ददष् ट िाजस्ट् त अजधररपण के प्रस्ट् ताि ा
िाजस्ट् त अजधररपण न करन े के कारणों का पान्िलरकन करेगी और िहा ं ह थाजस्ट् थजत, ऐसे प्रस्ट् ताि ा कारणों पर सहंत
हर सकेगी ा उसके उपांतरण का साझाि दे सकेगी, के जलए पान्िलरकन तरपरटड तै ार करेगी तथा ऐसी तरपरटड राष्र ी
पहचान जिहीन िाजस्ट् त केंर कर भेिेगी।
(xx) राष्र ी पहचान जिहीन िाजस्ट्त केंर, खडं (xix) के अधीन पना ्िलरकन तरपरट डकी प्राजत पर उस ेउस िाजस्ट्त
इकाई कर अग्रेजित करेगा जिसने थाजस्ट् थजत, िाजस्ट् त अजधररपण प्रस्ट् ताि प्रस्ट्त ाजित दक ा था ा िाजस्ट् त अजधररपण न करन े
के जलए कारण प्रस्ट् ताजित दकए थे ।[भाग II—खण् ड 3(ii)] भारत का रािप् : असाधारण 3
(xxi) िाजस्ट् त इकाई, ऐसी पना ्िलरकन तरपरटड पर जिचार करन े के प चात ् उसं ें प्रस्ट् ताजित सभी ा काड़
उपांतरणों कर स्ट् िीकार करेगी ा नांंिूर करेगी और ऐसे उपातं रणों कर नांंिूर करने के ंांले ंें कारणों कर अजभजलजखत
करने के प चात,् थाजस्ट् थजत, िाजस्ट् त अजधररजपत करने ा िाजस्ट् त का डिाजह ों कर ड़रेने का आदेि पातरत करेगी और
िाजस्ट् त अजधररजपत करन े ा िाजस्ट् त का डिाजह ों कर ड़रेने करन े का आदेि राष्र ी पहचान जिहीन िाजस्ट् त केंर के ंा् ं
स े जनधाडतरती पर तांील करेगी ।
(xxii) िहां, थाजस्ट् थजत, िाजस्ट् त अजधररजपत करने ा िाजस्ट् त ड़रेने हते ा संसूचना के जलए आदेि पातरत दक ा
ग ा ह ै िहां िाजस्ट् त इकाई ऐस े आदेि की एक प्रजत ा िाजस्ट्त ड़रेने हते ा संसूचना की एक प्रजत आ -कर प्राजधकारी कर,
खंड (i) ंें जनर्ददष्ट राष्र ी पहचान जिहीन िाजस्ट् त केंर के ंा् ं से अजधजन ं के अधीन अपेजक्ष त अजग्रं कारडिाई के जलए
ऐसे आदेि की एक प्रजत भेिगे ी;
(iii) पैरा 6 का लरप दक ा िाएगा ।
(iv) पैरा 8 ं,ें
(अ) “(i) स्ट् कीं के प्र रिनों के जलए” करष्ठ कों, अंकों और िब् दों के स्ट्थ ान पर “स्ट् कीं के प्र ेािनों के जलए” िब् द रखे िाएंग;े
(आ) खंड (ख) ं,ें “प्रादेजिक पहचान जिहीन जनधाडरण केंर” िब्द ों का लरप दक ा िाएगा ;
(v) परै ा 9 के स्ट्थ ान पर, जनम्न जलजखत परै ा रखा िाएगा, अथाडत् :-
“9. इलै र ाजनक अजभलखे का अजधप्रंाणन– इस स्ट् कीं के प्र रिनों के जलए दकसी इलैर ाजनक अजभलेख का
अजधप्रंाणन,-
(i) राष्र ी पहचान जिहीन िाजस्ट् त केंर द्वारा दकसी इलै र ाजनक संसूचना के ंा् ं से दक ा िाएगा;
(ii) थाजस्ट् थजत, िाजस्ट् त इकाई ा िाजस्ट् त पना ्िलरकन इकाई ा तकनीकी इकाई ा सत् ापन इकाई द्वारा
जडिीटल हस्ट्त ाक्ष र चस्ट् पा करके दक ा िाएगा ;
(iii) जनधाडतरती ा करई अन्द व् जत अपन े जडिीटल हस्ट्त ाक्ष र चस्ट् पा करके ा इलैर ाजनक सत् ापन करड के
अधीन ा पदाजभजहत परटडल पर अपन े रजिस्ट् रीकृत खात े ंें लॉग करके करेगा।
स्ट् पष्ट ीकरण – इस पैरा के प्र रिनों के जलए “इलैर ाजनक सत् ापन करड” का िही अथ ड हरगा िर इन जन ंों के
जन ं 12 ं ेंउसे जनर्ददष् ट दक ा ग ा ह”ै
(vi) पैरा 11 ं,ें -
(अ) उप-पैरा (1) ं,ें ा “प्रादेजिक पहचान जिहीन िाजस्ट् त केंर” िब् दों का लरप दक ा िाएगा ।
(आ) उप-पैरा (3) और ) उप-पैरा (4) के स्ट् थान पर, जनम्न जलजखत उप-पैरा रखे िाएंग,े अथातड ् :-
“(3) िहां व् जत गत सानिाई के जलए करई अनरा रध प्रा त हुआ ह,ै सासंगत इकाई का आ -कर अजधकारी ऐसी
सानिाई राष्र ी पहचान जिहीन िाजस्ट् त केंर के ंा् ं स ेअन्ा ात करेगा ।
(4) उप-पैरा (3) ं ें जनर्ददष्ट सानिाई अनन्द ुपप से िीजड र कान्द रैसिंग यसग ा टेली रनी िीजड र के ंा् ं स े
संचाजलत की िाएगी, जिसके अंतगतड करई टेली कम् ानीकेिन ए लीकेिन साटवटिे र का प्र रग भी ह ै िर ोरड ड
द्वारा अजधकजथत प्रदक्र ा के अनासार थाि प्ररौद्रजगकी जिस्ट्तार तक, िीजड र कान्द रैसिंग यसग ा टेली रनी
िीजड र द्वारा संथड हर ”
(vii) परै ा 12 ं,ें -
(अ) “प्रादेजिक पहचान जिहीन िाजस्ट् त केंर” िब्द ों का लरप दक ा िाएगा;
(आ) खडं (ix) का लरप दक ा िाएगा ।
[अजधसूचना सं. 54/2022/ ा.स.ं 370142/51/2020-टीपीएल-(भाग III)]
िे ाली सिंग यसह, अिर सजचि, कर नीजत और जिधान
तटप ण : ंूल स्ट्कीं, भारत के रािप्, असाधारण, भाग II, खंड 3, उपखंड (ii) ं ें का.आ.117(अ) तारीख, 12 िनिरी,
2021 द्वारा प्रकाजित की गई थी।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th May, 2022
(INCOME-TAX)
S.O. 2425(E).— In exercise of the powers conferred by sub-section (2A) of section 274 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following Scheme to amend
the Faceless Penalty Scheme, 2021, namely:__
1. Short title and commencement.––(1) This Scheme may be called the Faceless Penalty (Amendment)
Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Faceless Penalty Scheme, 2021,––
(i) in paragraph 4,––
(A) in sub-paragraph (1),––
(I) in clause (i), the words ―and vest it with the jurisdiction to impose penalty in accordance with
the provisions of this Scheme‖ shall be omitted;
(II) clause (ii) shall be omitted;
(III) in clause (iii), for the words ―as may be required for the purposes of imposing penalty‖, the
words ―as may be required for the purposes of imposing penalty and the term ―penalty unit‖,
wherever used in this Scheme, shall refer to an Assessing Officer having powers so assigned by the
Board‖ shall be substituted;
(IV) in clause (iv), for the words ―and such other functions as may be required for the purposes of
review, and specify their respective jurisdiction‖, the words ―and such other functions as may be
required for the purposes of review and the term ―penalty review unit‖, wherever used in this
Scheme, shall refer to an Assessing Officer having powers so assigned by the Board‖ shall be
substituted;
(B) in sub-paragraph (4), the words ―the Regional Faceless Penalty Centres,‖, ―Regional Faceless
Assessment Centre,‖ and ―Regional Faceless Penalty Centre,‖ shall be omitted;
(ii) in paragraph 5, in sub-paragraph (1),––
(A) in clause (ii), the words ―in any one of the Regional Faceless Penalty Centres‖ shall be omitted;
(B) for the clauses (xv) to (xxii), the following clauses shall be substituted, namely:––
―(xv) the penalty unit shall, after considering the material on record including response furnished, if
any, as referred to in clauses (viii), (x) and (xii) or report, if any, as referred to in clause (xiv),
propose for,––
(a) imposition of the penalty and prepare a penalty imposition proposal for imposition of
such penalty;
(b) non-imposition of the penalty, for reasons to be recorded in writing,
and send the penalty imposition proposal or reasons, as the case may be, to the National Faceless
Penalty Centre;
(xvi) the National Faceless Penalty Centre, in accordance with the guidelines issued by the Board,
may,––
(a) in a case where imposition of penalty has been proposed, convey to the penalty unit to
pass the penalty order as per penalty imposition proposal referred to in sub-clause (a)
of clause (xv); or[भाग II—खण् ड 3(ii)] भारत का रािप् : असाधारण 5
(b) in a case where non-imposition of penalty has been proposed, convey to the penalty
unit to drop the penalty proceedings under intimation to the assessee or any other
person, as the case may be; or
(c) assign the case to a penalty review unit through an automated allocation system, for
conducting review of such proposal or reasons, as the case may be;
(xvii) the penalty unit shall, in the case referred to in sub-clause (a) of clause (xvi), pass the order
imposing penalty and serve the same on the assessee through the National Faceless Penalty Centre;
(xviii) the penalty unit shall, in the case referred to in sub-clause (b) of clause (xvi), drop the
penalty proceedings and send the intimation to the assessee through the National Faceless Penalty
Centre;
(xix) the penalty review unit shall review the penalty imposition proposal or reasons for non-
imposition of penalty, as referred to in sub-clause (c) of clause (xvi), whereupon it may concur
with, or suggest modification to, such proposal or reasons, as the case may be, and prepare a review
report and send such report to the National Faceless Penalty Centre;
(xx) the National Faceless Penalty Centre shall, upon receiving the review report under clause
(xix), forward the same to the penalty unit which had proposed the penalty imposition proposal or
reasons for non-imposition of penalty, as the case may be;
(xxi) the penalty unit shall, after considering such review report, accept or reject some or all of the
modifications proposed therein and after recording reasons in case of rejection of such
modifications, pass the order imposing penalty or drop the penalty proceedings, as the case may be,
and serve the order imposing penalty or intimation for dropping penalty proceedings, as the case
may be, on the assessee through the National Faceless Penalty Centre;
(xxii) where an order imposing penalty or intimation for dropping penalty, as the case may be, has
been passed, the penalty unit shall send a copy of such order, or intimation for dropping penalty to
the income-tax authority, referred to in clause (i), through the National Faceless Penalty Centre, for
further action as may be required under the Act.‖;
(iii) paragraph 6 shall be omitted;
(iv) in paragraph 8,-
(A) for the brackets, figures and words ―(i) For the purposes of the Scheme‖, the words ―For the
purposes of the Scheme‖ shall be substituted;
(B) in clause (b), the words ―Regional Faceless Penalty Centres,‖ shall be omitted;
(v) for paragraph 9, the following paragraph shall be substituted, namely:––
―9. Authentication of electronic record.–– For the purposes of this Scheme, an electronic record
shall be authenticated by,––
(i) the National Faceless Penalty Centre by way of an electronic communication;
(ii) the penalty unit or the penalty review unit or technical unit or verification unit, as the case may
be, by affixing digital signature;
(iii) assessee or any other person, by affixing his digital signature or under electronic verification
code, or by logging into his registered account in the designated portal.
Explanation. – For the purpose of this paragraph, ―electronic verification code‖ shall have the same
meaning assigned to it in the Explanation to sub-rule (3) of rule 12 of the Rules.‖;
(vi) in paragraph 11,––
(A) in sub-paragraph (1), the words ―or Regional Faceless Penalty Centre‖ shall be omitted;
(B) for sub-paragraphs (3) and (4), the following paragraphs shall be substituted, namely:––
―(3) Where the request for personal hearing has been received, the income-tax authority of relevant
unit shall allow such hearing, through National Faceless Penalty Centre.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(4) Hearing referred to in sub-paragraph (3) shall be conducted exclusively through video
conferencing or video telephony, including use of any telecommunication application software
which supports video conferencing or video telephony, to the extent technologically feasible, in
accordance with the procedure laid down by the Board.‖;
(vii) in paragraph 12,––
(A) the words ―the Regional Faceless Penalty Centre,‖ shall be omitted;
(B) the clause (ix), shall be omitted.
[Notification No. 54/2022/F. No. 370142/51/2020-TPL(Part III)]
SHEFALI SINGH, Under Secy., Tax Policy and Legislation
Note : Principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (ii) vide number S.O. 117(E) dated the 12th January, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.