Faceless Assessment: Decoding the Exemptions for International Tax Charges

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....INTRODUCTION This article delves into a pivotal legal question concerning the validity of reassessment proceedings under the Income Tax Act, 1961. Specifically, it examines whether show cause notices issued u/s 148 in matters relating to international tax charges are exempted from following the statutory faceless procedure. The case revolves around the interpretation of Section 144B, Section 151....

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....9.03.2022, Section 144B(2), and the CBDT order dated 06.09.2021 exempts international tax charges from the faceless procedure. * The CBDT order specifically excludes assessment orders in cases assigned to international tax charges from the faceless regime. * The petitioners, being Non-Resident Indians (NRIs), are not covered by the faceless scheme, which is applicable only to residents. COURT....

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....d. and upheld the literal interpretation of the provisions. * The Court relied on the principle established by Lord Simonds and followed by the Indian Supreme Court, which emphasizes adhering to the natural meaning of the statutory language. ANALYSIS AND DECISION The Court concluded that the respondents erred in not following the mandatory faceless procedure prescribed in the scheme dated 29.0....