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sent by Business Standard. However, the spokesperson said faceless appeals
norms would be issued shortly.
Tax experts argue that assessees prefer to present arguments by being
physically present to explain their case better in case of appeals.
Amit Maheshwari, Partner, AKM Global, said discussion in person be-
comes really important during the appeals stage, which is generally missing in
faceless appeals.
“In the case of faceless appeal proceedings, most of the discussions gen-
erally happen electronically without any personal interaction, which makes the
issue more complex. The Commissioner has the power to confirm, reduce, en-
hance or annul the existing order and if taxpayers fail to convince the Commis-
sioner, they may not get relief. The risk of enhancement or confirmation of tax
demand is substantial,” he said.
E-mail communication may not be the best mode of communication
when the amount involved is high, and issues require deeper understanding,
especially industry-specific issues, added Maheswari.
Most tax experts are worried that with assessments being faceless, there
could be ad hoc or high-pitched assessments by officers in absence of proper ex-
planation, which will be exacerbated at the appeals level, which is also faceless.
This may result in higher litigation at the Tribunal level and above, according to
many experts. “In case faceless assessments result in high-pitched assessments or
ad hoc adjustments by Tax Authorities, in absence of proper submissions or ex-
planations, or if there are gaps in understanding the facts, more efforts would be
required at the first-appeal level to set out the correct facts,” said Shailesh Ku-
mar, Partner, Nangia and Co. LLP.
On top of it, if such faceless assessment orders are challenged and decid-
ed in faceless appeals, chances are higher that the taxpayer may not get the de-
sired relief even in the first appeal proceedings. So, the matter may have to be
necessarily carried to the second appellate authority, i.e. Income Tax Appellate
Tribunal for getting the desired relief,” added Kumar.
Tax officers, on the other hand, argue that the Commissioner (Appeals)
position requires proper understanding of the case, and carrying out appeals in a
faceless manner may be challenging. “Most cases may land up in Tribunals, with
taxpayers not getting a fair chance to explain their case. Many a times, appeals
are badly drafted or the language is not clear, which requires explanation by the
assessee. That will be difficult now,” said a tax officer.
A Commissioner of Income Tax (Appeals) said he is unsure whether he
should dispose of existing cases or not in the absence of clear guidelines. “I am
not sure whether I should decide on the existing cases or not till September 25. I
don’t want to be in trouble for deciding on the cases after the faceless appeals
announcement, even as it will be rolled out only next month,” he said.
[Source : Business Standard, New Delhi, dated 24-8-2020]

GST rate cut on two-wheelers under consideration : FM
The Government may consider lowering the Goods and Services Tax
(GST) on two-wheelers from the highest slab of 28%. Union Finance Minister
Nirmala Sitharaman said on 25-8-2020 that scooters and motorcycles could not be
characterised as either luxury or sin goods, and so merit a rate revision.
GST LAW TIMES  3rd September 2020  57