Faceless tax appeals may lead to rise in litigation, say officials

Consultants say they won't get fair chance to explain case

A week after Prime Minister Narendra Modi announced faceless appeals mechanism as part of a transparent taxation measure, tax officers and consultants are apprehensive about the effectiveness of the yet-to-be-launched scheme. They are also worried that litigation at the tribunal level may go up.

Tax officers argue transition from the existing appeals mechanism to a faceless system will be a “logistical nightmare” and are unsure over whether they should put all existing cases on hold or continue to pass orders. 

Tax consultants, on the other hand, are worried that faceless appeals will result in additional demands as they will not