India’s faceless appeals system — launched to make Income Tax proceedings transparent and efficient — is now facing criticism for procedural delays.
Taxpayers report that Faceless Commissioners of Income Tax (Appeals) [CIT (A)s] are issuing repeated notices and adjournments but not delivering final judgments, leaving disputes unresolved for months or even years.
This delay has created a procedural deadlock: without a CIT (A) order, taxpayers cannot approach higher authorities or tribunals, effectively locking cases in a digital loop.
Key Features of the Faceless CIT (A) System
| Feature | Intended Purpose | Current Issue |
| Faceless Assessment & Appeal | Introduced to eliminate physical interface and corruption | System automation has slowed manual discretion and case closures |
| Centralised Allotment of Cases | Random allocation for impartiality | Officers unfamiliar with local context or complexity |
| e-Notices and Online Hearings | Digital convenience for taxpayers | Repeated technical notices instead of conclusive hearings |
| Timeline Goals | Aim: quick disposal within 1 year | Many cases pending beyond 18–24 months |
The system was designed to promote fairness and speed — but in practice, taxpayers are receiving 4–5 rounds of notices without closure.
Current Scenario
- Thousands of appeals remain pending at the CIT (A) level, despite the faceless model being in place for years.
- In many cases, taxpayers have uploaded replies multiple times, yet new notices keep arriving without any final decision.
- These repetitive notices reset the procedural timeline, keeping disputes “alive” but legally frozen.
- No final order means taxpayers cannot move to the ITAT (Income Tax Appellate Tribunal) or the High Court.
- Some professionals allege that AI-based or rule-driven triggers in the portal are automatically generating new queries, instead of allowing closure.
Impact on Taxpayers
- No legal recourse — Without a final order, taxpayers can’t escalate cases.
- Financial stress — Refunds are blocked; demands remain pending or unresolved.
- Business uncertainty — Ongoing disputes affect audits, balance sheets, and credit ratings.
- Erosion of confidence — The system meant to build trust is creating frustration among honest taxpayers.
- Administrative burden — Tax professionals must respond repeatedly to the same queries, wasting time and resources.
Expected Reforms and Suggestions
- Time-bound disposal: The Finance Ministry is considering strict disposal timelines (e.g., within 90 days after the last hearing).
- Hybrid model: Experts suggest a mix of faceless + optional physical hearings for complex cases.
- AI moderation: Smarter algorithms to prevent repetitive notices.
- Transparency in workflow: Taxpayers should be able to track the appeal stage and responsible officer.
- Performance-linked accountability: Officers evaluated on case resolution, not case count.
Conclusion
The Faceless CIT (A) initiative was launched with good intentions — transparency, fairness, and speed.But the current reality shows bureaucratic paralysis and endless loops that harm taxpayer confidence.To preserve the credibility of India’s tax system, the government must balance automation with accountability — ensuring that technology serves justice, not delays it.
FAQs
1. What is the Faceless CIT (A) system?
Ans: It’s an online platform where appeals are handled digitally — without physical meetings — to improve transparency and reduce corruption.
2. Why are cases getting delayed?
Ans: Due to repeated system-generated notices, procedural complexities, and lack of clear closure mechanisms.
3. Can a taxpayer approach the tribunal directly?
Ans: No. The ITAT (Income Tax Appellate Tribunal) requires a final order from CIT (A) before appeal. Without that, the taxpayer remains stuck.
4. What is the government doing to fix this?
Ans: The CBDT (Central Board of Direct Taxes) is reviewing workflow timelines and may introduce AI moderation, stricter deadlines, and hybrid appeal options.
5. What can taxpayers do in the meantime?
Ans: Keep responding to notices on time.
- Maintain a complete digital record of all submissions.
- File a grievance on the Income Tax portal if delays exceed statutory limits.
- Escalate through professional associations or ombudsman routes.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
