CBDT chief directs Faceless officers to avoid irrelevant queries in tax assessments

India Gazette

30-06-2025

New Delhi [India], June 30 (ANI): The Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal has issued strict directives to Faceless Assessment Officers (FAOs) to avoid raising irrelevant queries while conducting faceless assessments, emphasising the need for more focused and case-specific scrutiny procedures.
Chairman Ravi Agarwal has written to the Principal Chief Commissioners of Income Tax, directing them to ensure that faceless assessment officers maintain higher standards of inquiry relevance and specificity in their assessments.
The CBDT, which serves as the apex body of the Income Tax Department, has released comprehensive guidelines for the compulsory selection of Income Tax Returns (ITRs) for scrutiny during the Financial Year 2025-26.
The directive comes as notices under Section 143(2) are being issued for cases selected through the Computer Assisted Scrutiny Selection (CASS) cycle.
According to the letter accessed by ANI, initial notices under Section 143(2) are being issued for cases selected based on prescribed parameters and procedures outlined in the new guidelines.
Assessing Officers will subsequently issue notices and questionnaires under Section 142(1) as required for these cases.
The CBDT chairman emphasised that queries raised during the faceless assessment process must be 'relevant, specific, and grounded in the case's specific circumstances.'
The directive explicitly states that irrelevant queries should be completely avoided to improve the efficiency and effectiveness of the assessment process. The new guidelines place significant emphasis on supervisory responsibility.
Senior officers in the faceless assessment hierarchy, particularly Unit Heads, including Additional Commissioners and Joint Commissioners of Income Tax, have been tasked with exercising effective supervision over FAOs.
These supervisory officers must ensure that FAOs apply due diligence while raising queries and must closely examine whether the queries pertain to the CASS selection criteria of the case under assessment.
The Unit Heads will bear direct responsibility for the quality of notices and assessment orders in faceless assessments.
To ensure effective implementation, Principal Chief Commissioners of Income Tax have been directed to conduct periodic interactions with faceless assessment units, Chief Commissioners and Principal Commissioners.
A mandatory monthly review of notice quality must be undertaken by the Principal Chief Commissioners of Income Tax.
The monthly reports from Principal Chief Commissioners must include detailed accounts of steps taken to ensure the quality of notices and assessment orders.
This reporting mechanism aims to create accountability and continuous improvement in the faceless assessment process. The directive represents the government's continued efforts to streamline tax administration and reduce unnecessary compliance burden on taxpayers while maintaining the integrity of the assessment process.
The faceless assessment system, introduced to minimise human interface and enhance transparency, is being further refined through these quality control measures.
The CBDT's emphasis on relevant and specific queries is expected to reduce frivolous inquiries and improve the taxpayer experience while ensuring that legitimate tax assessment objectives are met effectively. (ANI)