By S&S Co. Advocates & Solicitors · Published 20 September 2026 · Informational content, not legal advice. See our disclaimer
The Structure of Faceless Assessment
Faceless assessment under Section 144B of the Income Tax Act replaces the traditional jurisdictional, in-person assessment model with a system of specialised units (assessment units, verification units, technical units and review units) operating without direct interface between the taxpayer and any specific officer, coordinated through the National Faceless Assessment Centre (NaFAC). Notices, draft orders and communications flow through the taxpayer's registered e-filing account rather than a named officer's office.
The Draft Order and Show Cause Stage
Where a variation prejudicial to the taxpayer is proposed, the assessment unit issues a show cause notice along with a draft assessment order, and the taxpayer is given a defined period to respond. The taxpayer may also request a hearing through video conference at this stage: a request that, once made, generally must be acted upon, either by scheduling the hearing or by recording a specific reason for declining it, rather than being silently disregarded.
Reliance on Undisclosed Material
A recurring ground for challenge is where a faceless assessment order refers to, or appears to rely on, information or analysis not disclosed to the taxpayer in the show cause notice or draft order: for instance, data drawn from AIS/26AS records, third-party information, or an internal risk assessment not shared for a response. Since the taxpayer cannot meaningfully respond to material it has not seen, an order substantially founded on such undisclosed material is vulnerable on natural justice grounds.
Technical and Portal-Related Grounds
Because the entire process runs through the e-filing portal, technical failures (a notice uploaded with an unreasonably short response window, a hearing link that does not function, or a submission that the taxpayer attempted to file but the portal did not register before a deadline) have also featured in challenges, particularly where the taxpayer can show contemporaneous evidence of the attempt and the technical failure.
What a Successful Challenge Typically Achieves
As with other procedural challenges, a successful ground under the faceless scheme typically results in the assessment order being set aside and the matter remanded to the assessment unit to be completed afresh, curing the specific defect: it addresses how the assessment was conducted rather than automatically nullifying the tax dispute itself, so this remains a threshold safeguard rather than a substitute for contesting the merits.
Frequently Asked Questions
Am I entitled to a video-conference hearing under faceless assessment simply by asking?
A request for a hearing, made in response to a show cause notice proposing a prejudicial variation, generally must be responded to: either by granting it or by recording specific reasons for declining, rather than being ignored while the assessment is finalised.
What can I do if a faceless order relies on data I was never shown?
This is a recognised natural justice ground; the order can be challenged, typically by way of writ petition, on the basis that the taxpayer had no opportunity to respond to material actually relied upon in reaching the conclusion.
Does a portal technical failure excuse a missed response deadline?
It can, if the taxpayer maintains and produces contemporaneous evidence of the attempted filing and the technical failure: courts have been receptive to such evidence, though the taxpayer bears the burden of establishing it rather than merely asserting it after the fact.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Income Tax Act, 1961: Section 144B (Faceless Assessment).