Para 5 - Procedure in penalty

Faceless penalty procedure centralises allocation, notice, review and finalisation under the National Faceless Penalty Centre oversight.

The faceless penalty procedure centralises allocation, notice issuance, response handling, evidence requisition, review and finalisation through the National Faceless Penalty Centre and automated assignment to penalty units. Penalty units examine records, prepare draft show-cause notices or reasons for non-initiation, request further information or verifications, and propose imposition or non-imposition of penalty. The National Faceless Penalty Centre serves notices, forwards materials, directs final action under Board guidelines, or refers matters to a penalty review unit; final orders or intimations are served and copied to the referring income-tax authority for further action.