Advanced Direct Tax Laws and Practice · Assessment

Hearing, Appeals and Safeguards in Faceless Assessment

Updated 11 October 2026 · Fact-checked

Faceless assessment is an assessment where the assessee deals with the department electronically, not with a named officer face to face. Hearings can be held by video conferencing. The final order is appealable to the Commissioner (Appeals) under section 357 of the Income-tax Act, 2025, or to the Joint Commissioner (Appeals) under section 356 in listed cases.

Understand Personal Hearing, Appeals and Safeguards in Faceless Assessment

In a regular assessment, you meet your own Assessing Officer. In a faceless assessment, the interface between the officer and the assessee is removed as far as technology allows. Notices and replies move electronically, and the case is handled by teams, not by one officer you know. The main aim is transparency and accountability.

The hearing is the point where your rights matter. If you want to explain your case, the personal hearing can be held through video conferencing, so you need not visit an office. You should ask for it in time and keep your record of the request and the reply.

Safeguards come from natural justice. You must get a notice, a fair chance to reply, and a reasoned order. An adverse step, such as a higher assessment, should come only after you were told and could respond. Check the Faceless Assessment Scheme under section 273 and the notified scheme for the exact procedure. Your answer should name the safeguard, not only list it.

After the final order, the remedy is an appeal. The Act separates appealable orders between two authorities. Section 356 lists orders appealable to the Joint Commissioner (Appeals). Section 357 lists orders appealable to the Commissioner (Appeals). A faceless assessment order is normally an order of assessment, reassessment or recomputation under section 279, so it falls in both lists, subject to the conditions.

The appeal itself can also be faceless. Section 356(5) allows the Central Government to notify a scheme to remove the interface between the Joint Commissioner (Appeals) and the appellant. So the same idea of electronic, impersonal handling runs from assessment to first appeal.

Key rules to remember

Appeal to Joint Commissioner (Appeals): Section 356(1): orders of an Assessing Officer below the rank of Joint Commissioner, including assessment, reassessment or recomputation under section 279; Under section 356(2), no appeal lies to the Joint Commissioner (Appeals) if the order is passed by or with prior approval of an authority above the rank of Deputy Commissioner.
Appeal to Commissioner (Appeals): Section 357: includes orders under section 279 or 283, penalty orders under Chapter XXI, and other listed orders; Section 357(e) excludes orders passed on Dispute Resolution Panel directions and orders referred to in section 274(12).
Powers on appeal against assessment: Section 360(1)(a): confirm, reduce, enhance or annul the assessment; For a penalty order, section 360(1)(d) lets the authority confirm, cancel or vary it.
Safeguard before enhancement: Section 360(2): reasonable opportunity of showing cause before enhancing assessment or penalty, or reducing refund; This is a mandatory natural-justice condition.
Hearing of the appeal: Section 359(2): appellant, in person or by an authorised representative, and the Assessing Officer have the right to be heard; Section 359(1) requires a notice of the day and place of hearing to both sides.
Appellate order: Section 359(4): in writing, stating points for determination, decision and reasons; Section 359(5): where possible, decide within one year from the end of the financial year in which the appeal is filed or transferred.
Identical question of law: Section 375: declaration that the question will not be raised if the final decision in the other case is applied; Applies where an identical question is pending before the High Court or Supreme Court for another tax year.

How to solve Personal Hearing, Appeals and Safeguards in Faceless Assessment questions

Use this order for any case-based question on hearings and appeals in faceless assessment.

1Identify the stage: notice, hearing, final order, or appeal.
2State the rule that applies, for example the right to a video conferencing hearing or the right to a reasoned order.
3Check the facts: who passed the order, whether it was with prior approval of a higher authority, and what type of order it is.
4Pick the appellate forum. Use section 356 for the Joint Commissioner (Appeals) and section 357 for the Commissioner (Appeals), and test the section 356(2) bar.
5Check the safeguards: notice, opportunity to show cause, and a written reasoned order.
6Apply the appellate powers under section 360, especially the section 360(2) show-cause rule for enhancement.
7Conclude clearly: which authority, which section, and what relief the assessee can seek.
8Add one practical point, such as the record to keep of electronic replies and hearing requests.

Quickest way: Forum-first check

When to use it: Use it when a short case asks where to appeal or whether an order is valid.

Write the order type and the section under which it was passed.
Ask whether higher-rank approval was involved. If yes, section 356 is barred.
Find the order in the section 357 list and name the Commissioner (Appeals).
If the question mentions enhancement, add the section 360(2) opportunity rule.
Close with the one-line conclusion.

Common mistakes in Personal Hearing, Appeals and Safeguards in Faceless Assessment

Saying every faceless assessment order goes to the Commissioner (Appeals) only.
Students remember section 357 and forget section 356.
Fix: Mention both. Section 356 applies to orders of an officer below Joint Commissioner rank, subject to the section 356(2) bar.
Ignoring the section 356(2) bar.
Facts about prior approval are in the case but are not noticed.
Fix: Always check who passed the order or approved it. Above Deputy Commissioner rank means no appeal to the Joint Commissioner (Appeals).
Claiming the appellate authority can never enhance the assessment.
Students think an appeal can only help the assessee.
Fix: Section 360(1)(a) allows enhancement, but section 360(2) needs a reasonable opportunity to show cause first.
Treating video conferencing as a right in every case without conditions.
Overreading a general safeguard.
Fix: Say that the hearing can be held through video conferencing under the scheme, and refer to the notified procedure for how it is requested.
Forgetting that the appellate order must be reasoned and in writing.
Focus stays on the assessment order.
Fix: Quote section 359(4): points for determination, decision and reasons.
Raising a pending-law question in the wrong way under section 375.
Students confuse it with a stay or a normal appeal.
Fix: Explain it as a declaration route. The question is not raised again once the claim is admitted, and the final decision is applied later.

Worked examples

Example 1

Meridian Traders Pvt. Ltd. receives a faceless assessment order under section 279 passed by an Assessing Officer below the rank of Joint Commissioner, without higher approval. It objects to the income assessed. Where can it appeal?

Show the solution

The order is an assessment order under section 279.
Section 356(1)(c) lists such an order for appeal to the Joint Commissioner (Appeals), where the officer is below that rank.
Section 356(2) bars this only if the order was passed by or with approval of an authority above Deputy Commissioner. No such approval exists here.
Section 357(e) also lists section 279 orders for the Commissioner (Appeals), so the company can use that forum as the appeal route in the Act.

Answer: Meridian can appeal against the order. The Joint Commissioner (Appeals) is available under section 356, and the Commissioner (Appeals) is listed under section 357(e). It should check the notified scheme on which forum applies in practice.

Example 2

On appeal, the Commissioner (Appeals) proposes to increase the assessed income of Kiran Enterprises, which only asked for relief. Can this be done?

Show the solution

Section 360(1)(a) allows the authority to confirm, reduce, enhance or annul an assessment.
So enhancement is permitted in law.
Section 360(2) forbids enhancement unless the appellant has had a reasonable opportunity of showing cause.
Section 359(1) and (2) give Kiran notice of hearing and the right to be heard in person or through a representative.
The order must be in writing with points for determination, decision and reasons under section 359(4).

Answer: Yes, enhancement is possible, but only after Kiran Enterprises is given a reasonable opportunity to show cause. Without it, the enhancement is open to challenge.

Exam tips

Name sections 356, 357, 359 and 360 in the right place. Mixing them is the commonest way to lose marks.
In case questions, write provision, facts, conclusion in three short parts.
Always test the section 356(2) condition when the facts mention approval by a senior officer.
Mention video conferencing and the electronic interface as safeguards, but refer to the scheme for the detailed procedure.
Add a practical line on keeping a record of electronic notices and replies.

Practice questions from Assessment

Personal Hearing, Appeals and Safeguards in Faceless Assessment in other exams

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

CA FinalFaceless Assessment Procedure

Personal Hearing, Appeals and Safeguards in Faceless Assessment: frequently asked questions

Can the hearing in faceless assessment be held by video conferencing?

Yes, the personal hearing can be held through video conferencing under the faceless scheme. This removes the need to visit an office. Check the notified procedure for how to make the request.

What is the difference between faceless assessment and regular assessment?

In regular assessment you deal with a known Assessing Officer in person. In faceless assessment the interface is removed as far as technology allows, and the work is done electronically by teams. The legal safeguards of notice, hearing and reasoned order stay.

Where do I file an appeal against a faceless assessment order?

Orders under section 279 are listed in section 357 for the Commissioner (Appeals) and in section 356 for the Joint Commissioner (Appeals). Section 356(2) bars the latter if a senior authority passed or approved the order.

Can the appellate authority increase my tax?

Yes, under section 360(1)(a) it can enhance the assessment. It must first give you a reasonable opportunity to show cause under section 360(2).