Faceless Income Tax Appeal

Faceless Income Tax Appeals in India: CIT(A), JCIT(A) and e-Appeal Procedure

A faceless income tax appeal allows an eligible taxpayer to pursue an appeal before the Commissioner of Income Tax (Appeals) or Joint Commissioner of Income Tax (Appeals) through an electronic appellate framework, without the need for routine physical interaction with the appellate authority.

Under the Faceless Appeal Scheme, 2021 and the e-Appeals Scheme, 2023, relevant income-tax appeals may involve electronic notices, online written submissions, digital allocation of cases, video-conference hearings and electronic communication of appellate orders.

These procedures are particularly important for companies, individuals, NRIs and businesses challenging additions, disallowances or penalties arising from income-tax assessment proceedings.

This guide explains the faceless income tax appeal procedure in India, the distinction between CIT(A) and JCIT(A), the applicable schemes, online submissions, video hearings, additional evidence, remand reports and appellate remedies under the Income-tax Acts of 1961 and 2025.

For broader assessment and appellate representation, refer to our Income Tax Assessment and Litigation Services in India.

What Is a Faceless Income Tax Appeal?

A faceless income tax appeal is an appeal dealt with through the applicable electronic appellate framework using the Income Tax Department’s digital systems.

Instead of relying primarily on physical hearings and exchange of paper documents, the appellant and appellate authority communicate through the prescribed electronic channels.

Depending on the governing scheme, important activities may include:

• Electronic allocation of eligible appeals.
• Service of notices through the prescribed electronic system.
• Submission of explanations and documentary evidence online.
• Examination of assessment records and written arguments.
• Obtaining information or remand reports from the Assessing Officer.
• Video-conference hearings where permitted or required.
• Electronic issue and communication of appellate orders.

Faceless proceedings do not eliminate the taxpayer’s right to present factual explanations, legal arguments or relevant evidence in accordance with the applicable law.

Evolution of Faceless and Electronic Income Tax Appeals in India

India introduced electronic and faceless tax administration to reduce routine physical interaction, improve transparency and use technology for the management of assessment and appellate proceedings.

The important developments include:

The Faceless Appeal Scheme, 2021 was notified by CBDT Notification No. 139/2021 dated 28 December 2021.

The e-Appeals Scheme, 2023 was notified through CBDT Notification No. 33/2023 dated 29 May 2023.

These schemes should be distinguished from the separate faceless assessment framework. An assessment is conducted before the assessment authority, while an appeal challenges an appealable order before the appropriate appellate authority.

Read our Faceless Income Tax Assessment Procedure guide for the assessment-stage process.

Faceless Appeal Scheme, 2021: CIT(A) Proceedings

The Faceless Appeal Scheme, 2021 provides the procedure for disposal of specified appeals before the Commissioner of Income Tax (Appeals) under the applicable statutory framework.

Its important features include electronic communication, allocation of appeals, written submissions, examination of records and video-conference hearings.

National Faceless Appeal Centre

The National Faceless Appeal Centre (NFAC) facilitates the centralised administration of proceedings under the faceless appeal framework.

Under the notified scheme, the NFAC acts as the prescribed channel for communications involving the appellate authority, appellant and other relevant persons.

Appeal Units and Electronic Allocation

Appeals covered by the scheme may be assigned to the relevant appellate units using an automated allocation system.

The Commissioner (Appeals) examines the assessment record, submissions, evidence and applicable statutory requirements before deciding the appeal.

The taxpayer should not assume that the authority conducting the appeal will necessarily be located in the same city as the appellant.

Scope and Exclusions

The scheme operates for the categories of cases specified under the applicable notifications and administrative directions.

Historically, certain sensitive matters, search-related cases, international taxation matters and other specified categories have been subject to separate treatment.

Accordingly, the applicable scheme and forum must be confirmed rather than assuming that every income-tax appeal is necessarily handled under the same faceless arrangement.

Refer to the official CBDT notification of the Faceless Appeal Scheme, 2021.

e-Appeals Scheme, 2023: JCIT(A) Proceedings

The e-Appeals Scheme, 2023 provides the electronic procedure for relevant appeals handled by the Joint Commissioner of Income Tax (Appeals).

The scheme was notified through Notification No. 33/2023 dated 29 May 2023 under the Income-tax Act, 1961.

It provides for electronic allocation and processing of appeals, obtaining submissions and evidence, communication with the Assessing Officer and issue of appellate orders.

Depending on the nature of the appeal, the JCIT(A) may seek additional information, call for a report from the Assessing Officer or require clarification of specific grounds.

The scheme also includes provisions relating to additional grounds, additional evidence, rectification and other procedural matters.

Important: The Faceless Appeal Scheme, 2021 and e-Appeals Scheme, 2023 are distinct statutory schemes. The correct framework depends on the forum, applicable law and administrative allocation.

For the original notification, refer to the official e-Appeals Scheme, 2023 notification.

Faceless Appeal vs e-Appeal: Key Differences

These are broad distinctions. The precise applicable procedure must be checked against the relevant statutory provisions, notifications and case allocation.

Income-tax Act, 2025: What Changed for Electronic Appeals?

The Income-tax Act, 2025 came into force on 1 April 2026 and reorganised the statutory provisions governing income-tax proceedings.

For first appeals governed by the new Act, the principal appellate provisions are contained in sections 356 to 360.

Section 358 deals with important filing requirements, while Rule 167 of the Income-tax Rules, 2026 prescribes Form 99.

Form 35 and Form 99

Form 35 continues to be relevant for appeals under the Income-tax Act, 1961, subject to the applicable transitional provisions.

Form 99 is prescribed for first appeals governed by the Income-tax Act, 2025.

The applicable form is determined by the governing law and tax period, not simply by the date on which the appeal is filed.

For example, appeals relating to earlier assessment years may continue under the relevant provisions of the Income-tax Act, 1961.

Under the transition and savings framework, existing schemes and proceedings must be considered in light of the corresponding provisions and applicable notifications.

For detailed filing requirements, appeal fees, limitation periods and Grounds of Appeal, refer to our Income Tax Appeal Against Assessment Order Guide.

The official Rule 167 specifies the manner of filing Form 99, including electronic verification requirements.

What Happens After an Income Tax Appeal Is Filed Online?

After a first appeal has been successfully filed, the taxpayer should preserve the filing acknowledgement and monitor the status of the appellate proceedings.

The specific sequence varies according to the applicable scheme and case requirements.

1. Appeal registration: The electronic appeal and supporting documents are received through the prescribed portal facility.
2. Allocation: The matter may be assigned to the relevant appellate authority or unit under the applicable arrangement.
3. Notice or communication: The appellant may receive a notice seeking submissions, clarification or documentary evidence.
4. Written submissions: The appellant responds to the issues under consideration, identifying the supporting facts and legal grounds.
5. Further inquiry: The appellate authority may seek a report or clarification from the Assessing Officer.
6. Additional evidence or grounds: Any request is considered under the applicable statutory requirements.
7. Hearing: A video-conference or other permitted hearing opportunity may be provided.
8. Appellate order: A reasoned decision is communicated through the prescribed mechanism.

The appellate authority may seek more than one round of submissions where the matter requires further examination.

Taxpayers should therefore monitor the proceeding until a final order has been communicated and given effect.

How to Respond to a Faceless Appeal Notice Online

Notices issued during an electronic appeal should be examined carefully. The communication may seek written submissions, documentary evidence, comments on an Assessing Officer’s report or clarification concerning specific Grounds of Appeal.

Review the Notice and Due Date

Read the complete notice, including annexures, questions and the response deadline.

Confirm the proceeding reference, tax period, appellate forum and documents requested.

Prepare Issue-wise Written Submissions

For each disputed issue, a submission should ordinarily identify:

• The relevant Ground of Appeal.
• The addition or disallowance made in the assessment order.
• The Assessing Officer’s reasoning.
• The taxpayer’s factual explanation.
• Supporting evidence already on record.
• Applicable statutory provisions and judicial precedents.
• The relief requested from the appellate authority.

Upload Relevant Supporting Documents

Supporting documents should be indexed and linked to the relevant submissions.

Depending on the case, documents may include assessment notices, earlier replies, financial statements, ledger accounts, agreements, bank records, transaction reconciliations and supporting computations.

Additional evidence not produced during assessment may require a separate application under the applicable rules.

Submit and Preserve the Acknowledgement

Submit the response using the prescribed e-Proceedings or appellate facility.

Save the final submission, uploaded annexures and electronic acknowledgement.

If the deadline cannot be met, consider an adjournment or extension request through the available procedure. The request should not be treated as granted unless the applicable authority permits it.

For access to official services, use the Income Tax e-Filing Portal.

Right to Video-Conference Hearing in Faceless Appeals

The right to an effective hearing is particularly important where the appellate dispute involves complex facts, extensive documents or substantial legal questions.

Under the Faceless Appeal Scheme, 2021, an appellant or authorised representative may request a personal hearing through video conferencing.

Under the relevant scheme provisions, the Commissioner (Appeals) is required to allow such a request, and the hearing is conducted through the prescribed electronic arrangement.

This represents an important procedural safeguard in faceless appellate proceedings.

When Should a Video Hearing Be Requested?

A hearing may be particularly useful where:

• The assessment involves several disputed additions or disallowances.
• The appeal raises jurisdictional or limitation issues.
• The Assessing Officer has misunderstood important financial records.
• The case involves international transactions or complex accounting matters.
• The taxpayer wishes to explain detailed documentary reconciliations.
• A proposed enhancement or other adverse action requires clarification.

The request should be submitted in accordance with the applicable scheme and directions mentioned in the portal communication.

How to Prepare for a Video Hearing

Before the hearing, prepare a short issue-wise note identifying the Grounds of Appeal, disputed amounts, relevant evidence and key legal authorities.

Test the necessary technical facilities and ensure that the authorised representative has access to the relevant documents.

Keep the oral explanation focused on matters requiring clarification rather than reading the entire written submission.

Where the e-Appeals Scheme, 2023 applies, the hearing procedure should be checked under that scheme instead of automatically assuming every rule of the 2021 scheme applies identically.

Additional Evidence in Faceless Appeal Proceedings

Taxpayers sometimes need to rely on evidence that was not produced before the Assessing Officer.

However, additional evidence is not automatically admissible merely because the appellate process is conducted electronically.

For appeals governed by the Income-tax Act, 1961, Rule 46A of the Income-tax Rules, 1962 contains important restrictions and exceptions.

For applicable first appeals under the Income-tax Act, 2025, Rule 192 of the Income-tax Rules, 2026 contains corresponding provisions.

Admission may depend on reasons such as refusal to admit relevant evidence during assessment, sufficient cause for non-production or lack of adequate opportunity.

When seeking to submit additional evidence, the appellant should explain its relevance and why it was not furnished during assessment.

The appellate authority must follow the applicable statutory safeguards, including the opportunity for the Assessing Officer to examine or respond to material where required.

Remand Reports and Rejoinders in Electronic Appeals

During an appeal, the appellate authority may request a report from the Assessing Officer on disputed issues or evidence.

Such a report is commonly called a remand report.

The appellant should examine the report carefully and, where an opportunity is provided, submit a rejoinder addressing factual inaccuracies, misunderstandings or legal conclusions.

Practical Example

Assume a company appeals against a disallowance of Rs. 12 lakh in business expenses.

The company submits invoices, payment records and ledger accounts. The appellate authority seeks comments from the Assessing Officer.

If the remand report states that certain invoices were not previously produced, the company should verify the assessment record and explain whether those invoices had been submitted, whether they constitute additional evidence and why they should be considered.

The appellant should support the explanation with submission acknowledgements, correspondence or other relevant documents where available.

This example is hypothetical and does not describe an actual client matter or case result.

Can Additional Grounds Be Raised During an e-Appeal?

An appellant may identify an additional legal or factual ground after filing the original appeal.

Admission of an additional ground depends on the applicable law and procedure.

The appellant should explain the issue, the reason for not raising it earlier and the relief sought.

Where a new ground involves facts not previously examined, the appellate authority may need further submissions or inquiry.

Practical recommendation: Review the assessment order comprehensively before filing the original appeal so that important factual, legal and jurisdictional objections are not unnecessarily omitted.

What if a Faceless Appeal Notice or Hearing Opportunity Is Missed?

Failure to respond to an appellate notice can adversely affect the presentation of the taxpayer’s case.

If a deadline or scheduled hearing has been missed, the appellant should promptly examine the proceeding status and consider submitting an explanation and request for an appropriate further opportunity.

Relevant circumstances may include failure of the electronic system, genuine medical emergencies or other substantiated reasons.

However, an extension or fresh hearing cannot be assumed merely because a request is submitted.

Where an appellate order has already been passed, the available remedies depend on the order, governing law and procedural circumstances.

What Powers Does CIT(A) or JCIT(A) Have?

The first appellate authority exercises the powers provided by the applicable Income-tax Act.

Depending on the appeal and statutory provisions, the authority may confirm, reduce, enhance or annul an assessment.

The relevant powers under the Income-tax Act, 2025 are contained in section 360.

Where an enhancement or another adverse action is proposed, the authority must comply with the applicable statutory requirements relating to notice and opportunity of hearing.

The appellate decision should address the material issues and provide reasons in accordance with the governing law.

What Happens After the Faceless Appeal Order?

After receiving an appellate order, the taxpayer should compare the findings with the Grounds of Appeal and relief requested.

Where relief is allowed, the subsequent effect given to the order should be checked against the tax computation, demand and refund records.

Where the taxpayer remains aggrieved, a further appeal may lie before the Income Tax Appellate Tribunal (ITAT), subject to the applicable statutory provisions and limitation period.

For proceedings governed by the Income-tax Act, 1961, sections 253 and 254 govern important aspects of ITAT appeals.

Under the Income-tax Act, 2025, the corresponding Tribunal framework is contained in sections 361 to 364.

Filing a first appeal or subsequent Tribunal appeal does not automatically stay recovery of a disputed tax demand.

For recovery relief, read our guide on Stay of Income Tax Demand After Assessment Order.

Common Mistakes in Faceless Income Tax Appeals

• Missing electronic communications: Check portal notices and the registered email account regularly.
• Submitting generic arguments: Prepare issue-wise explanations addressing the assessment findings.
• Uploading documents without an index: Link evidence to specific grounds and facts.
• Ignoring remand reports: Review and respond to adverse findings where an opportunity is available.
• Assuming additional evidence is automatically admissible: Follow the applicable rules and procedure.
• Not requesting a relevant video hearing: Consider available hearing rights where oral clarification would assist.
• Using an incorrect statutory framework: Distinguish earlier assessment years from tax years governed by the 2025 Act.
• Assuming the appeal stops recovery: Consider a separate stay application where necessary.
• Failing to preserve electronic acknowledgements: Maintain a complete record of submissions and orders.

Frequently Asked Questions About Faceless Income Tax Appeals

What is a faceless income tax appeal?

A faceless income tax appeal is an appeal conducted under the applicable electronic appellate framework through online communication, written submissions, electronic document handling and permitted video hearings.

What is the Faceless Appeal Scheme, 2021?

It is the scheme notified by CBDT on 28 December 2021 for conducting specified appeals before the Commissioner (Appeals) through a faceless appellate system.

What is the e-Appeals Scheme, 2023?

It is the electronic appellate scheme notified on 29 May 2023 for relevant appeals handled by the Joint Commissioner (Appeals).

Are faceless appeal and e-Appeal the same?

They are related digital appellate procedures but arise under distinct notifications. The correct scheme depends on the relevant appellate forum, governing law and allocation.

Can I request a video hearing in a faceless appeal?

Yes. Under the Faceless Appeal Scheme, 2021, the appellant or authorised representative may request a personal hearing through video conferencing, which must be allowed according to the scheme.

Which form is used for first income tax appeals in 2026?

Form 35 remains relevant for appeals governed by the Income-tax Act, 1961, while Form 99 applies to first appeals governed by the Income-tax Act, 2025.

Can I submit additional evidence during a faceless appeal?

Additional evidence may be admitted where the applicable conditions are satisfied. Rule 46A applies to relevant earlier-Act appeals, while Rule 192 applies to relevant appeals under the new rules.

What is a remand report?

A remand report is a report or comments obtained from the Assessing Officer during appellate proceedings. The appellant may be given an opportunity to respond to its contents.

Can a Chartered Accountant represent a taxpayer in a faceless appeal?

Subject to the applicable statutory and authorisation requirements, a Chartered Accountant may assist with preparing appellate submissions and representing the taxpayer in relevant electronic appellate proceedings.

Does a faceless appeal automatically stop tax recovery?

No. A separate stay application or other legally effective recovery protection may be required.

How EzyBiz India Can Assist With Faceless Income Tax Appeals

EzyBiz India Consulting LLP provides professional assistance in income-tax assessments, reassessments, scrutiny proceedings, faceless appeals, penalty matters and appellate representation.

Our services may include:

• Review of assessment orders and existing appellate records.
• Preparation of Grounds of Appeal and Statement of Facts.
• Review and organisation of supporting evidence.
• Preparation of written submissions for CIT(A) and JCIT(A).
• Assistance with additional evidence and additional grounds.
• Preparation of rejoinders to remand reports.
• Assistance with video-conference hearing preparation.
• Review of appellate orders and available further remedies.
• Assistance with stay of disputed tax demands.

Related Income Tax Services and Resources

• Income Tax Assessment and Litigation Services in India
• Income Tax Appeal Against Assessment Order
• Stay of Income Tax Demand
• Faceless Assessment Procedure
• Faceless Assessment FAQs
• How to Respond to an Income Tax Notice
• Income Tax Scrutiny Assessment
• Direct Tax Advisory Services in India