Advanced Direct Tax Laws and Practice · Assessment

Faceless Assessment Scheme under Section 273 Explained

Updated 11 October 2026 · Fact-checked

Faceless assessment under section 273 of the Income-tax Act, 2025 is assessment done electronically, without the assessee meeting the officer. The National Faceless Assessment Centre assigns the case to assessment, verification, technical and review units. All communication goes through it by electronic mode. The assessment unit passes the written order.

Understand Faceless Assessment Scheme under Section 273

Section 273 changes who handles your assessment and how. Instead of one local officer dealing with you in person, the work is split among units. You deal only with a central centre, and only online.

The section starts with a non-obstante clause. It says that, irrespective of anything to the contrary in any other provision, assessment, reassessment or recomputation under section 270(10), 271 or 279 shall be made in a faceless manner as per the prescribed procedure. This applies only to the cases referred to in sub-section (2).

Sub-section (2) fixes the scope. Faceless assessment applies to the territorial area, persons or class of persons, incomes or class of incomes, and cases or class of cases that the Board specifies. So the Act does not cover every case by itself. The Board decides the coverage.

Sub-section (3) lets the Board set up a National Faceless Assessment Centre and four kinds of units: assessment, verification, technical and review. The Centre manages proceedings centrally. It assigns the case to an assessment unit, intimates the assessee, serves notice under section 268(1) or 270(8), and forwards the assessee's response to the assessment unit. The text you are given mentions only the National Centre. Do not claim regional centres from this section. If a question asks about regional centres, say that the section as supplied names only the National Faceless Assessment Centre and units set up by the Board.

The aims are clear from the design: less personal contact, central control of communication, division of functions, and an electronic trail. 'Faceless assessment' is defined as proceedings conducted electronically in the 'e-Proceeding' facility through the assessee's registered account on the designated portal.

Key rules to remember

Scope of the scheme: Section 273(1) applies to assessment, reassessment or recomputation under section 270(10), 271 or 279, in cases referred to in sub-section (2); Cases are those specified by the Board by area, persons, incomes or cases.
Centre and units: National Faceless Assessment Centre + assessment unit + verification unit + technical unit + review unit (section 273(3)); The Board sets them up and specifies their functions and jurisdiction.
Assessment unit's role: Written order on total income or loss + opportunity of being heard + sum payable or refund (section 273(4)(b)); It may also initiate penalty proceedings, if any.
Communication rule: All communications go through NaFAC; with assessee and with units exclusively by electronic mode (section 273(7)); Sub-section (8) exception: enquiry or verification by the verification unit in circumstances specified by the Board.
Transfer to jurisdictional officer: Section 273(12): transfer at any stage with prior approval of the Board; Done by the Principal Chief Commissioner or Principal Director General in charge of the Centre, if considered necessary.
Unit authorities: Section 273(6): Additional or Joint Commissioner or Director; Deputy or Assistant Commissioner or Director, or Income-tax Officer; other authority, staff or consultant as the Board considers necessary; Units refer to an Assessing Officer having powers assigned by the Board (sub-section (5)).
Meaning of faceless assessment: Proceedings conducted electronically in 'e-Proceeding' facility through the assessee's registered account in the designated portal (section 273(13)); The designated portal is designated by the Principal Chief Commissioner or Principal Director General in charge of the Centre.
Assessing Officer for sections 280 and 281: Section 279(3): an Assessing Officer other than the National Faceless Assessment Centre or any assessment unit under section 273(3); Inserted by Act No. 4 of 2026, with effect from 1-4-2026.

How to solve Faceless Assessment Scheme under Section 273 questions

For any question on the faceless scheme, use the section's own order: scope, structure, communication, outcome, exceptions.

1Identify the stage. Check whether it is assessment, reassessment or recomputation under section 270(10), 271 or 279.
2Check scope. Ask whether the Board has specified the area, person or case for faceless assessment under section 273(2).
3Name the Centre and units that act. State what the National Faceless Assessment Centre does, then the role of each unit under section 273(3).
4Trace the communication. Show that it passes through the Centre and is exclusively electronic, and note the verification unit exception.
5State the assessment unit's duty. It passes a written order after considering material and giving a hearing, and fixes tax payable or refund.
6Test for exceptions. Look at the reference route under section 273(9) to (11) and transfer under sub-section (12).
7Conclude clearly in one sentence, then add the practical point, such as using the registered account on the portal.

Quickest way: Five-line recall for section 273

When to use it: Use when time is short or you must answer a short note on the scheme.

Say what it is: electronic assessment through the registered account on the designated portal.
List the Centre and four units with one function each.
Say who does what: the Centre assigns and communicates; the assessment unit assesses.
Add the rule: communication through the Centre, electronic only; exception for verification.
Close with the exits: reference under section 268(5) route, and transfer with Board approval.

Common mistakes in Faceless Assessment Scheme under Section 273

Saying every assessment is faceless.
Students read sub-section (1) and ignore sub-section (2).
Fix: State that it applies only to the areas, persons, incomes or cases specified by the Board.
Writing about regional faceless assessment centres as part of section 273.
Memory of older scheme notes.
Fix: Section 273(3) names the National Faceless Assessment Centre and the four types of units. Stick to that text.
Saying the Centre passes the assessment order.
Confusing the coordinating role with the deciding role.
Fix: The assessment unit makes the assessment order under sub-section (4)(b). The Centre assigns cases and handles communication.
Believing the assessee talks directly to the units.
Treating units as ordinary officers.
Fix: Communication goes through the Centre, exclusively by electronic mode, except verification circumstances specified by the Board.
Forgetting the transfer power in sub-section (12).
Focusing only on the faceless flow.
Fix: Mention that the Principal Chief Commissioner or Principal Director General may transfer the case to the jurisdictional Assessing Officer at any stage, with the Board's prior approval.
Ignoring section 279(3).
It is a short, recently inserted provision.
Fix: Note that for sections 280 and 281 the Assessing Officer excludes the Centre and assessment units.

Worked examples

Example 1

Explain the structure and functions of the Centre and units that conduct faceless assessment under section 273 of the Income-tax Act, 2025.

Show the solution

Provision: section 273(3) allows the Board to set up a Centre and units and specify their functions and jurisdiction.
National Faceless Assessment Centre: facilitates centralised proceedings, assigns the selected case to an assessment unit, intimates the assessee, serves notice under section 268(1) or 270(8), and forwards the assessee's response to the assessment unit.
Assessment unit: analyses material, identifies issues, seeks information or clarification, and determines any variation prejudicial to the assessee.
Verification unit: enquiry, cross verification, examination of books and witnesses, and recording of statements.
Technical unit: gives legal, accounting, forensic, IT, valuation, transfer pricing, data analytics or management advice.
Review unit: reviews a proposed variation where the Centre considers it necessary, checking evidence, points of fact and law, and issues for addition or disallowance.
Conclusion: the work is divided so that no single officer handles the case.

Answer: The Board may set up the National Faceless Assessment Centre plus assessment, verification, technical and review units under section 273(3). The Centre assigns and communicates; the assessment unit assesses; the other units verify, advise and review.

Example 2

Meera Textiles Pvt Ltd, Surat, receives a notice under section 268(1) in a case the Board has specified for faceless assessment. It wishes to send documents directly to the local officer and requests a personal meeting with the verification unit. Advise.

Show the solution

Provision: section 273(7) routes all communications among units, and with the assessee, through the National Faceless Assessment Centre.
Analysis: communications between the Centre and the assessee or authorised representative must be exclusively by electronic mode.
Application: sending documents directly to a local officer is not the prescribed route. Responses should be filed through the registered account on the designated portal and are forwarded by the Centre to the assessment unit.
Exception: sub-section (8) disapplies sub-section (7) only for enquiry or verification by the verification unit in circumstances specified by the Board. A personal meeting is possible only if the Board has specified such circumstances.
Safeguard: the assessment unit must give an opportunity of being heard before the written order, under sub-section (4)(b)(i).
Conclusion: Meera Textiles should respond electronically through the Centre and check the Board's specified circumstances before expecting any direct verification.

Answer: Documents must go through the Centre electronically via the registered account. A direct meeting is possible only where the Board has specified verification circumstances under section 273(8). The company will still get a hearing before the order.

Exam tips

Write answers in the order provision, analysis, conclusion, and quote sub-section numbers such as 273(3), 273(7) and 273(12).
Use a short list for the four units and give one function for each. Examiners look for all four.
Always state that scope is fixed by the Board under sub-section (2). It is an easy mark.
Mention the exceptions: verification circumstances under sub-section (8) and transfer under sub-section (12).
In practical questions, advise on electronic response through the registered account and meeting hearing opportunities.

Practice questions from Assessment

Faceless Assessment Scheme under Section 273 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Faceless Assessment Scheme under Section 273: frequently asked questions

What is faceless assessment under section 273?

It is assessment, reassessment or recomputation done electronically through the e-Proceeding facility in the assessee's registered account on the designated portal. A National Faceless Assessment Centre and several units share the work. It applies to cases the Board specifies.

What does the National Faceless Assessment Centre do?

It facilitates centralised proceedings. It assigns the case to an assessment unit, intimates the assessee, serves notices under section 268(1) or 270(8), and forwards the assessee's response to the assessment unit. All communication among units and with the assessee passes through it.

Who passes the assessment order in a faceless case?

The assessment unit does. It makes the assessment of total income or loss in writing after considering all relevant material and giving the assessee an opportunity of being heard. It then determines the tax payable or refund due.

Can a faceless case be moved to a regular officer?

Yes. Under section 273(12), the Principal Chief Commissioner or Principal Director General in charge of the Centre may transfer the case to the jurisdictional Assessing Officer at any stage, if necessary, with the Board's prior approval. A reference route under section 268(5) is also provided in sub-sections (9) to (11).