CBDT directs transfer of ongoing penalty proceedings to Faceless Penalty Scheme, 2021

 

This Tax Alert summarizes recent orders  issued by the Central Board of Direct Taxes  (CBDT) on 20 January 2021 (CBDT Orders), wherein the CBDT has directed that units established under Faceless Assessment Scheme, 2019  shall perform the functions of various units as required under the recently-introduced Faceless Penalty Scheme, 2021  (FPS) until the requisite units are formally formed in FPS. It also defines the scope of FPS to include all ongoing, as also future, penalty proceedings under the Income Tax Laws  (ITL), except for three cases (i.e., cases where penalty proceedings are assigned to central charges or international tax charges or arising in withholding cases).