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

Rohan Traders, assessed faceless, receives from the assessment unit a show cause notice proposing a variation prejudicial to its interest. The assessee wishes to explain orally. Per Rule 176 of the Income-tax Rules, 2026, which statement is correct?

The assessee may request a personal hearing where a prejudicial variation is proposed, and it is held exclusively by video conferencing or video telephony, to the extent technologically feasible, through the NFAC. Physical appearance, in person or through a representative, is not required in faceless proceedings.

  1. AThe assessee may request a personal hearing, which is conducted exclusively through video conferencing or video telephony, to the extent technologically feasibleCorrect
  2. BThe assessee must appear in person at the office of the Assessing Officer having jurisdiction
  3. CThe assessee can send an authorised representative to appear physically before the assessment unit
  4. DNo oral hearing is ever permitted in a faceless assessment

Explanation

Rule 176(3)(g) allows the assessee or authorised representative to request a personal hearing where a variation is proposed. Rule 176(3)(h) says the hearing is allowed through the NFAC and is conducted exclusively by video conferencing or video telephony, to the extent technologically feasible. Rule 176(3)(f) bars physical appearance, so the options requiring it or denying any hearing are wrong.

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