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Fiscal Developments 63

between the income-tax authorities and the taxpayer can lead to an efficient, non-discretionary,
unbiased single window system of assessment. In 2020, the scope of Faceless Assessment
Scheme 2019 was broadened by bringing all the pending assessment cases across the country
within the purview of the Scheme and declaring that any order passed outside the scheme shall
be invalid.

2.20 The scheme establishes a National Faceless Assessment Centre (NFAC) in Delhi, headed
by Principal Chief Commissioner of Income Tax, as the sole point of contact between the
Department and the taxpayer. All notices or communications to and from the taxpayer, and
internal communications related to assessment process within the Department are routed through
the NFAC. To further facilitate and streamline the process of assessment there are various
Regional Faceless Assessment Centers which are vested with the power to make assessments. A
schematic diagram of Faceless Assessment procedure may be seen in figure 7.

Figure 7: Faceless Assessment Procedure

Source: Survey compilation based on inputs from Department of Revenue.
Note: NFAC: National Faceless Assessment Centre, AU: Assessment unit, TU: Technical Unit, VU: Verification
Unit, RU: Review Unit, DAO: Draft Assessment Order.