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

Meera Textiles Ltd's case has been selected for faceless assessment. Its assessment unit has formed the view that a proposed addition of Rs 12 lakh is prejudicial to the company, and it has issued a show cause notice through the National Faceless Assessment Centre. The company's CFO wants to present oral submissions on the proposed variation. Under Rule 176 of the Income-tax Rules, 2026, what is the correct position?

When a variation is proposed and a show cause notice is issued, the assessee may request a personal hearing. The hearing is allowed through the National Faceless Assessment Centre and is held only by video conferencing or video telephony, to the extent technologically feasible. Physical appearance is not permitted.

1. ANo personal hearing is available at any stage of a faceless assessment, since no personal appearance is allowed
2. BThe assessee may request a personal hearing, which is then conducted exclusively through video conferencing or video telephony, to the extent technologically feasibleCorrect
3. CThe assessee may request a personal hearing, which must be held physically at the office of the Assessing Officer having jurisdiction
4. DThe assessee may appear in person before the assessment unit only if the National Faceless Assessment Centre has first referred the case to a review unit