Faceless assessment under Section 144B

What this section is

Section 144B prescribes the procedure for faceless assessment under Section 143(3) and 144. Communication is fully electronic, the assessing unit is anonymous, and personal hearings are conducted via video conference. It also includes a Show Cause Notice mandate before any addition is made.

When it is issued

As the operating procedure in every faceless scrutiny case from AY 2020-21 onwards (with limited exceptions for international tax and search cases).

What you should do

1. 1Maintain a folder of every notice, reply and acknowledgement on the e-filing portal — there is no physical record.
2. 2Insist on a Show Cause Notice with the proposed variation before any addition. A draft order without an SCN is a violation of natural justice.
3. 3Request a video hearing — the AO cannot deny it where the variation is prejudicial.
4. 4Where a procedural lapse occurs (e.g. no SCN, no DIN), raise it explicitly in the reply itself; do not save it for appeal.

Documents typically needed

• All notices and acknowledgements from the e-filing portal
• Replies filed earlier
• Documentary evidence supporting each item under enquiry

Common mistakes

• Not downloading the notice copy from the portal immediately — they sometimes disappear.
• Replying through email or post — only the e-filing portal counts.
• Forgetting to verify the Document Identification Number (DIN) on every notice.