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

Meridian Textiles Ltd, a Surat-based company, has its case selected for faceless assessment. The National Faceless Assessment Centre (NFAC) has intimated the company that the assessment will follow the faceless procedure. As per Rule 176 of the Income-tax Rules, 2026, how is the case first allotted to a particular assessment unit?

The NFAC assigns the selected case to a specific assessment unit through an automated allocation system. Neither the jurisdictional Assessing Officer, the assessee nor the Dispute Resolution Panel chooses the unit; allocation is randomised and technology-driven under Rule 176(2)(a).

  1. ABy the Jurisdictional Assessing Officer, who picks the unit by a written order
  2. BBy the NFAC, through an automated allocation systemCorrect
  3. CBy the assessee, who selects a preferred unit on the designated portal
  4. DBy the Dispute Resolution Panel, on the basis of the amount of income involved

Explanation

Rule 176(2)(a) provides that the NFAC assigns the case selected for faceless assessment to a specific assessment unit through an automated allocation system. The jurisdictional officer, the assessee and the Dispute Resolution Panel have no role in choosing the assessment unit.

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