Supreme Court Issues Notice In Plea Seeking Transfer Of Cases Challenging Faceless Appeal Scheme, 2020 From High Courts To Top Court

The matter was listed before the division bench of Justices SK Kaul and MM Sundresh.

"The petitions before the High Courts are stated to be predicated on a challenge to the Faceless Appeal Scheme, 2020 on the ground that no "personal hearing" has been granted and that such a discretion may not be left to the Chief Commissioner or the Director-General," the Top Court in its order noted.

Remarking that only a short question was involved, the bench posted the matter for October 1, 2021.

Appearing for the Central Board Of Direct Taxes, Additional Solicitor General N. Venkataraman submitted that the matters were pending in the High Court(s) of Allahabad, Delhi, Telangana and Kerala.

What is 'Faceless Income Tax Appeal Scheme 2020'?

Prime Minister Narendra Modi had launched this programme/scheme in August 2020 to honour honest income taxpayers in the country. While unveiling faceless tax scrutiny and appeal system, the Prime Minister had urged people to pay their due taxes and contribute to nation-building and had also announced that the Income Tax department would start faceless appeals from September 25.

Challenge Pending In Various High Courts

Delhi High Court

The Delhi High Court bench of Justices Manmohan and Sanjeev Narula on 16^th October 2020 had issued a notice to the Union of India and Income Tax Department on a petition challenging the 'Faceless Income Tax Appeal Scheme, 2020'. The petition had sought direction to the respondents (Union of India and Income Tax Department) to grant an opportunity of hearing to all taxpayers/assessee and to hold that the same is not at the discretion of the Chief Commissioner or the Director-General as proposed in the Faceless Appeal Scheme, 2020.

Bombay High Court

Recently, the Bombay High Court bench of Justices K R Shriram and Justice Abhay Ahuja on August 5, 2021 had issued notice to the Attorney General K K Venugopal seeking his response on the writ petition challenging the constitutionality of the provisions dealing with faceless appeal scheme introduced by the Centre.

Case Title: Central Board Of Direct Taxes Vs. Lakshya Budhiraja

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