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CA Final · Direct Tax Laws & International Taxation · Assessment Procedure

In a faceless assessment of Ramesh Traders, the assessment unit proposes to add Rs 4,00,000 to the declared income. Ramesh Traders receives the show cause notice and wants to explain orally. Which statement is correct under Rule 176 of the Income-tax Rules, 2026?

Ramesh Traders may request a personal hearing because 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. No physical appearance is required or permitted as a mode in faceless proceedings.

  1. ANo personal hearing is possible, because faceless assessment bars all oral submissions
  2. BHe must appear in person at the office of the assessment unit
  3. CHe may request a personal hearing, which is allowed through the National Faceless Assessment Centre exclusively by video conferencing or video telephony, to the extent technologically feasibleCorrect
  4. DHe may request a personal hearing, which must be held in person before the review unit

Explanation

Rule 176(3)(f) says no personal appearance is required, but 176(3)(g) allows a request for personal hearing where a variation is proposed. Under 176(3)(h), the hearing is allowed through the Centre and conducted exclusively by video conferencing or video telephony, to the extent technologically feasible. The option denying hearing ignores clause (g).

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