The Central Bureau of Investigation (CBI) has filed a case against nine individuals, including one Deputy Commissioner of Income Tax (IRS), two Income Tax Inspectors, five Chartered Accountants (CAs), and one private individual, for allegedly attempting to sabotage the government’s “Faceless Scheme of Assessment.”
The accused are alleged to have worked together to undermine the purpose of the scheme, which aims to eliminate human interaction between taxpayers and tax officials to reduce bias and improve transparency.
The “Faceless Scheme of Assessment” is a key reform designed to create a non-intrusive and fairer tax ecosystem. Under this system, taxpayers are not meant to know the identity of the assessment or appellate officers handling their cases.
However, the CBI alleges that a group of CAs, in collusion with certain income tax officials, were illicitly revealing the names of these officers to taxpayers.
They were also accused of misusing sensitive income tax data related to pending assessments, appeals, and high refund cases to solicit financial benefits from taxpayers.
By disclosing the identities of the assessment and appellate officers, the accused enabled taxpayers to make direct contact, effectively circumventing the faceless assessment system. The CBI asserts that this conduct constitutes an attempt to sabotage the government’s initiative.
In response to these allegations, the CBI conducted searches at 18 locations across Delhi, Mumbai, Thane, West Champaran (Bihar), Bengaluru, and Kottayam (Kerala). During these searches, investigators seized incriminating documents, evidence of illicit payments, and digital devices.
The CBI has stated that the investigation is ongoing.
What is Faceless Tax Assessment system?
The faceless tax assessment system, introduced in 2019, aimed to minimise corruption by removing the physical interface between taxpayers and tax officials.
While the system has clear advantages, some experts argue that challenges, such as difficulties in handling large volumes of data and a lack of real-time interaction, complicate compliance and can undermine the system’s effectiveness. Critics also point to a growing backlog of appeals.
However, the Central Board of Direct Taxes (CBDT) maintains that the system is well-equipped to handle complex cases and respects taxpayers’ right to appeal.
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