Faceless penalty proceedings u.s. 271F - harassment due to authority not equipped and not having access to documents already available in portal of department.

[DEV KUMAR KOTHARI]

 Faceless penalty proceedings u.s. 271F - harassment due to authority not equipped and not having access to documents already available in portal of department.

Faceless Penalty Scheme was launched on 12/01/2021 when old portal of income tax department  www.incometaxindiaefiling.gov.in  was functional. Subsequently new portal has been launched that is www.incometax.gov.in.

In the old portal also there was problem and faceless penalty officers wanted assessee to furnish all documents including assessment order, appeal documents etc. It seems that faceless authority has been provided only copy of notice issued by AO earlier. The authority is therefore asking assessee to furnish even the assessment order.

Even in case when penalty proceeding u.s. 271F was wrongly initiated in spite of fact that ROI was filed within time allowed u.s. 139.1 and in earlier response assessee had made it clear still faceless authority is issuing notice again and again.

Face less authority can examine date of filing of ITR and due date and in case ROI was filed timely, then face less authority must record fact and drop penalty proceeding u.s. 271F.

The faceless authority must have access to documents relating to assessee,  available in the portal in my account or other links, so there should not be requirement to ask assessee to furnish assessment order, appeal document, appeal order, VSV declaration etc. However, in annexure face less authority is asking assessee to furnish all such documents.

Tax payers time is also valuable please do not waste it if you want that taxpayer to earn more and pay more tax:

In physical hearings tax payers and  tax consultants had feeling that the tax authority has hardly any regard to their  time.  Waiting for hours took place and then cases were adjourned. Lot of wastage of time took place.

In faceless proceeding also to some extent  same things are happening because tax authorities are asking assessee to furnish various documents which are already available in e-filing account of assessee.

An example of notice for penalty u.s. 271 F is extracted below:

The notice is dated 17.07.2021 and compliance is fixed  on 26.07.21 allowing very short time particularly in difficult times due to COVID related problems.

                            GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT

                                 National Faceless Assessment Centre Delhi

To assessee  xxxxx  with details of PAN, date DIN etc.             

 Show Cause Notice for penalty under section 271F of the Income-tax Act,1961 dated 17.07.2021

 Ms/Mr/M/s,

Faceless Penalty Scheme was launched on 12/01/2021 and henceforth all penalties will be disposed of in a faceless manner similar to Faceless Assessment.

 2. Kindly refer to penalty proceedings under section 271F initiated vide notice dated 09/12/2019 bearing DIN , in your case for the aforementioned Assessment Year.

 3. You are required to show cause why order imposing penalty under section 271F of Income-tax Act,1961 should not be passed as initiated by the penalty notice referred above.

 4. Kindly submit your response along with supporting documentary evidence(s) if any, electronically in 'e-Proceeding' facility through your account in e-filing website (www.incometax.gov.in) by the midnight (23:59 hours) of 26/07/2021.

 5. If required, you may request for personal hearing so as to make oral submissions or present your case after filing of written reply. On approval of the request, personal hearing shall be conducted exclusively through video conference.

 6. In case you had requested for keeping the penalty proceedings in abeyance, you are requested to upload a copy of the said reply.

 7. In case no response is received by the given time and date, the penalty order shall be passed without the benefit of your explanation.

 Yours faithfully, Additional/Joint/Deputy/Assistant Commissioner of Income-tax/

Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in. Income-tax Officer,

 National Faceless Assessment Centre, Delhi Note: Refer to Annexure for additional details, if any.

Page 2 of 3

                      Xxxx               A.Y. 2012-13         ITBA/PNL/F/271F/2021-22/xxxxx    1)

 ANNEXURE

 In connection with the penalty proceedings as referred above, you are hereby required to explain and show cause as to why the aforesaid penalty should not be levied in your case. In case, you have preferred an appeal before the CIT(A), please inform the status of such proceedings. You are also requested to furnish copies of following documents:-

1. Copy of order against which appeal is preferred before CIT(A).
2.  Form No.35 with attachments.
3.  Copy of relevant appellate order, if any.
4.  Copy of Form in respect of Vivad se Vishwas Scheme opted by you if any.

 Additional / Joint / Deputy / Assistant Commissioner of Income Tax Income-tax Officer, National Faceless Assessment Centre, Delhi

From the above notice it appears that face less authority is also asking for many documents, without looking into record which are available in account of assessee.

Is it not shocking that even for assessment order, assessee is being asked to file the same?

Login is with pass word so e-verification should be optional

Assessee has to log in his account with password, therefore, submissions through logedin account are safe.

In earlier portal submissions could be uploaded without e-verification.  However, in new portal it is not allowed.

Documents must be allowed to be uploaded without e verification ( by various methods)  because e=verification is very difficult and  time consuming. DSC registration is also not taking place.