What is Faceless Assessment under the Income Tax proceeding |What you should do if you get a 144B / faceless notice

 Section 144B of income Tax Act 1961 provides the statutory framework for faceless (electronic) income-tax assessments — i.e., assessments done through a National Faceless Assessment Centre (NaFAC) and assigned to remote units without any physical, face-to-face interface.

I am givng here Step-by-step flow that is 'what happens and where to look' when for faceless assessment:-

1. Selection / Initiation
• A case is selected (risk-based/automated) and faceless proceedings are initiated. Notices under section 142(1) or 143(2) are served through the National Faceless Assessment Centre (NaFAC).
2. Automated assignment to an Assessment Unit
• NaFAC uses automated allocation to assign the case to an Assessment Unit (an AO or team assigned that role). It is team-based assessment where there would be no specific Assessment officer or specific jurisdictional location. It means you will not be interacting a particular person.
3. Assessment Unit can ask for information / verification / technical help
• The Assessment Unit may request (via NaFAC):
• further information/documents from the assessee,
• a verification/enquiry by a Verification Unit, or
• technical assistance (valuation, transfer-pricing, forensic, IT, etc.) from a Technical Unit.
• Those requests are routed and handled electronically by the respective units.
4. How you as assessee respond
• Notices/requests are delivered electronically (registered e-filing account, registered e-mail, mobile app) followed by a real-time alert.
• You will have file your responses through your registered account on the designated income tax  portal only. Once you get an acknowledgement containing a hash result, your response is deemed authenticated.
5. If you don’t comply
• If the assessee fails to respond to a requisition/notice, NaFAC informs the Assessment Unit. The unit may then issue a notice under section 144 (best-judgment assessment) through NaFAC, giving an opportunity to show-cause.
6. Income / Loss determination proposal → Show-cause (if variation proposed)
• After considering available materials, the Assessment Unit prepares either:
• an income/loss determination proposal (no adverse variation), or
• a show-cause notice (if a variation prejudicial to the assessee is proposed). The assessee may reply to the show-cause through NaFAC.
7. Review and draft order
• NaFAC may refer the proposal to a Review Unit. The Review Unit examines the proposal, sends a review report; the Assessment Unit then prepares a draft order (after considering the review).
8. Serving draft order & opportunity to contest before issue of Final order
• Where a prejudicial variation is proposed, NaFAC will serve the draft order on the assessee and provide reasonable time to respond / contest the draft (a statutory opportunity to be heard).
9. Personal hearing — only by video
• A personal hearing (oral submissions) can be requested by the assessee — but, under faceless scheme, if allowed it is conducted only by video-conference / video telephony (to the extent technologically feasible).
•  Personal physical appearance is neither required nor allowed. NaFAC must also make video-conferencing facilities available if the assessee lacks access.
10. Final order, penalty & demand/refund
• After draft/review and responses, NaFAC may instruct the Assessment Unit to pass the final assessment order. The order, penalty initiation (if any) and demand/refund communication are issued electronically and conveyed to the assessee by NaFAC.
11. Transfer to jurisdictional (territorial) AO — when needed
• In specific circumstances (e.g., where invocation of certain provisions like sec.142(2A) is appropriate), NaFAC may refer/transfer the case to the jurisdictional Assessing Officer for further action — and the Principal Chief Commissioner / Chief Commissioner / Principal Commissioner can direct the local AO to proceed.
12. Who sits in these units (authority levels)
• The Assessment / Verification / Technical / Review units are staffed by officers across levels (e.g., Addl. Commissioner / Joint Commissioner / Deputy Commissioner / Assistant Commissioner / Income-tax Officer, etc.) as assigned by the Board.
13. Exclusions / Exceptions
• Not all cases are taken up facelessly. CBDT has issued orders specifying exclusions (for example—cases assigned to Central Charges, International Tax Charges and certain technical exceptions). Check the CBDT order for current exclusions.

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What you should do if you get a 144B / faceless notice)

• Respond through your registered e-filing account within the timeline shown; keep the acknowledgement hash. (Replying via the portal creates the authenticated record.)
• If you need more time, apply for extension via the portal (the scheme allows extension requests).
• If a draft order proposes variation, use the opportunity to file a detailed reply and request a video hearing if oral submissions will help.
• Keep supporting documents ready (digital copies) and maintain an audit trail of all portal communications.
• If unsure, engage your CA / tax lawyer early — the faceless process is electronic but legal safeguards and timelines remain important.