Faceless Penalty (Amendment) Scheme 2022 notified by CBDT; Omits Regional Faceless Penalty Centres

Faceless Penalty (Amendment) Scheme 2022 notified by CBDT; Omits Regional Faceless Penalty Centres The Central Board of Direct Taxes (CBDT) vide Notification No. 54/2022 dated 27.05.2022 notifies Faceless Penalty (Amendment) Scheme 2022. The Notification is Given Below: S.O. 2425(E).— In exercise of the powers conferred by sub-section (2A) of section 274 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following Scheme to amend the Faceless Penalty Scheme, 2021, namely:__ 1. Short title and commencement.––(1) This Scheme may be called the Faceless Penalty (Amendment) Scheme, 2022. (2) It shall come into force on the date of its publication in the Official Gazette. 2. In the Faceless Penalty Scheme, 2021,–– (i) in paragraph 4,–– (A) in sub-paragraph (1),––

(I) in clause (i), the words "and vest it with the jurisdiction to impose penalty in accordance with the provisions of this Scheme" shall be omitted;

(II) clause (ii) shall be omitted;

(III) in clause (iii), for the words "as may be required for the purposes of imposing penalty", the words "as may be required for the purposes of imposing penalty and the term "penalty unit", wherever used in this Scheme, shall refer to an Assessing Officer having powers so assigned by the Board" shall be substituted;

(IV) in clause (iv), for the words "and such other functions as may be required for the purposes of review, and specify their respective jurisdiction", the words "and such other functions as may be required for the purposes of review and the term "penalty review unit", wherever used in this Scheme, shall refer to an Assessing Officer having powers so assigned by the Board" shall be substituted;

(B) in sub-paragraph (4), the words "the Regional Faceless Penalty Centres,", "Regional Faceless Assessment Centre," and "Regional Faceless Penalty Centre," shall be omitted;

(ii) in paragraph 5, in sub-paragraph (1),––

(A) in clause (ii), the words "in any one of the Regional Faceless Penalty Centres" shall be omitted;

(B) for the clauses (xv) to (xxii), the following clauses shall be substituted, namely:––

"(xv) the penalty unit shall, after considering the material on record including response furnished, if any, as referred to in clauses (viii), (x) and (xii) or report, if any, as referred to in clause (xiv), propose for,––

(a) imposition of the penalty and prepare a penalty imposition proposal for imposition of such penalty;

(b) non-imposition of the penalty, for reasons to be recorded in writing, and send the penalty imposition proposal or reasons, as the case may be, to the National Faceless Penalty Centre;

(xvi) the National Faceless Penalty Centre, in accordance with the guidelines issued by the Board, may,––

(a) in a case where imposition of penalty has been proposed, convey to the penalty unit to pass the penalty order as per penalty imposition proposal referred to in sub-clause (a) of clause (xv); or

(b) in a case where non-imposition of penalty has been proposed, convey to the penalty unit to drop the penalty proceedings under intimation to the assessee or any other person, as the case may be; or

(c) assign the case to a penalty review unit through an automated allocation system, for conducting review of such proposal or reasons, as the case may be;"

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