CA Final · Direct Tax Laws & International Taxation · Assessment Procedure
During faceless assessment of Rao Infra Ltd, the assessment unit proposes variations prejudicial to the assessee and serves a show cause notice through the National Faceless Assessment Centre. Rao Infra's director wishes to put forward oral submissions. Under the Income-tax Rules, 2026, which statement is correct?
The assessee may request a personal hearing where a variation is proposed. The hearing is allowed through the National Faceless Assessment Centre and is conducted exclusively by video conferencing or video telephony, to the extent technologically feasible. Physical appearance is not required, and the hearing is not barred.
- ANo hearing of any kind is allowed in faceless assessment
- BThe assessee may request a personal hearing, which is conducted exclusively through video conferencing or video telephony, to the extent technologically feasibleCorrect
- CThe assessee must attend in person at the nearest income-tax office
- DA hearing is allowed only if the assessee has filed no reply to the notice
Explanation
Rule 176(3)(g) and (h) allow a request for personal hearing where a variation is proposed. The hearing is allowed through the NaFAC and conducted exclusively through video conferencing or video telephony, to the extent technologically feasible. Rule 176(3)(f) bars only required personal appearance, not the requested video hearing.
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