India Income Tax Department utilizes faceless assessment and AI

The Income Tax Department utilizes a technology-driven faceless assessment system designed to increase transparency and efficiency. This initiative uses data analytics, artificial intelligence, and risk assessment tools to select and allocate cases, thereby minimizing direct interaction between taxpayers and authorities. Under Section 144B of the Income-tax Act, taxpayers receive electronic notices and can submit responses, supporting documents, and adjournment requests through their registered e-filing accounts.

In a related legal development, the Income Tax Appellate Tribunal (ITAT) Nagpur Bench addressed a jurisdictional issue involving a reassessment notice issued to a deceased individual. The case involved an assessee who passed away in December 2019, yet the department initiated reassessment proceedings and issued a notice under Section 148 in March 2024 in the name of the deceased. The ITAT has restored the matter to the Commissioner of Income Tax (Appeals) to decide on the validity of the proceedings.