Procedure in appeal.

5. (1) The appeal referred to in paragraph 3 shall be disposed of under this Scheme as per the following procedure, namely:—

(i) the National Faceless Appeal Centre shall assign the appeal to a specific appeal unit in any one Regional Faceless Appeal Centre through an automated allocation system;
(ii) where the appellant has filed the appeal after the expiration of time specified in sub-section (2) of section 249 of the Act, the appeal unit may, —
(a) in case, it is satisfied that the appellant had sufficient cause for not filing the appeal within the said time, admit the appeal; or
(b) in any other case, reject the appeal,
 under intimation to the National Faceless Appeal Centre;
(iii) where the appellant has applied for exemption from the operation of clause (b) of sub-section (4) of section 249 of the Act, the appeal unit may, —
(a) admit the appeal and exempt the appellant from the operation of provisions of said clause for any good and sufficient reason to be recorded in writing; or
(b) in any other case, reject the appeal,
 under intimation to the National Faceless Appeal Centre;
(iv) the National Faceless Appeal Centre shall intimate the admission or rejection of appeal, as the case may be, to the appellant;
(v) where the appeal is admitted, —
(a) the appeal unit may request the National Faceless Appeal Centre to obtain such further information, document or evidence from the appellant or any other person, as it may specify;
(b) the appeal unit may request the National Faceless Appeal Centre to obtain a report of the [National Faceless Assessment Centre]or the Assessing Officer, as the case may be, on grounds of appeal or information, document or evidence filed by the appellant;
(c) the appeal unit may request the National Faceless Appeal Centre to direct the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, for making further inquiry under sub-section (4) of section 250 of the Act and submit a report thereof;
(d) the National Faceless Appeal Centre shall serve a notice upon the appellant or any other person, as the case may be, or the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, to submit such information, document or evidence or report, as the case may be, as may be specified by the appeal unit or as may be relevant to the appellate proceedings, on a specified date and time;
(vi) the appellant or any other person, as the case may be, shall file a response to the notice referred to in sub-clause (d) of clause (v), within the date and time specified therein, or such extended date and time as may be allowed on the basis of an application made in this behalf, with the National Faceless Appeal Centre;
(vii) the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, shall furnish a report in response to the notice referred to in sub-clause (d) of clause (v), within the date and time specified therein or such extended date and time as may be allowed on the basis of an application made in this behalf, to the National Faceless Appeal Centre;
(viii) where response is filed by the appellant or any other person, as the case may be, or a report is furnished by the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, the National Faceless Appeal Centre shall send such response or report to the appeal unit, and where no such response or report is filed, inform the appeal unit;
(ix) the appellant may file additional ground of appeal in such form, as may be specified by the National Faceless Appeal Centre, specifying therein the reason for omission of such ground in the appeal filed by him;
(x) where the additional ground of appeal is filed-
(a) the National Faceless Appeal Centre shall send the additional ground of appeal to the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, for providing comments, if any, and to the appeal unit;
(b) the [National Faceless Assessment Centre] or the Assessing Officer, as the case may, shall furnish their comments, within the date and time specified or such extended date and time as may be allowed on the basis of an application made in this behalf, to the National Faceless Appeal Centre;
(c) where comments are filed by the [National Faceless Assessment Centre]or the Assessing Officer, as the case may be, the National Faceless Appeal Centre shall send such comments to the appeal unit, and where no such comments are filed, inform the appeal unit;
(d) the appeal unit shall, after taking into consideration the comments, if any, received from the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be,—
(A) if it is satisfied that the omission of additional ground from the form of appeal was not wilful or unreasonable, admit such ground; or
(B) in any other case, not admit the additional ground,
 for reasons to be recorded in writing and intimate the National Faceless Appeal Centre;
(xi) the National Faceless Appeal Centre shall intimate the admission or rejection of the additional ground, as the case may be, to the appellant;
(xii) the appellant may file additional evidence, other than the evidence produced by him during the course of proceedings before the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein as to how his case is covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the Rules;
(xiii) where the additional evidence is filed,—
(a) the National Faceless Appeal Centre shall send the additional evidence to the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, for furnishing a report within the specified date and time on the admissibility of additional evidence under rule 46A of the Rules;
(b) the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, shall furnish the report, as referred to in sub-clause (a), to the National Faceless Appeal Centre within the date and time specified, or such extended date and time as may be allowed on the basis of an application made in this behalf, by the National Faceless Appeal Centre.
(c) where the report, as referred to in sub-clause (a), is furnished by the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, the National Faceless Appeal Centre shall send such report to the appeal unit, and where no such report is furnished, inform the appeal unit;
(d) the appeal unit may, after considering the additional evidence and the report, if any, furnished by the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, admit or reject the additional evidence, for reasons to be recorded in writing, and intimate the National Faceless Appeal Centre;
(e) the National Faceless Appeal Centre shall intimate the admission or rejection of additional evidence, as the case may be, to the appellant and the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be;
(xiv) where the additional evidence is admitted,—
(a) the appeal unit shall, before taking such evidence into account in the appellate proceedings, prepare a notice to provide an opportunity to the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, within the date and time specified there into examine such evidence or to cross-examine such witness, as may be produced by the appellant, or to produce any evidence or document, or any witness in rebuttal of the evidence or witness produced by the appellant, and furnish a report thereof, and send such notice to the National Faceless Appeal Centre;
(b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a),upon the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be;
(c) the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, shall furnish the report, as referred to in sub-clause (a), to the National Faceless Appeal Centre, within the date and time specified, or such extended date and time as may be allowed on the basis of an application made in this behalf, by the National Faceless Appeal Centre;
(d) the National Faceless Appeal Centre shall send the report furnished by the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, to the appeal unit or where no such report is furnished, inform the appeal unit;
(xv) the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, may request the National Faceless Appeal Centre to direct the production of any document or evidence by the appellant, or the examination of any witness, as may be relevant to the appellate proceedings;
(xvi) where the request referred to in clause (xv) is received, -
(a) the National Faceless Appeal Centre shall send such request to the appeal unit;
(b) the appeal unit shall consider such request and may, if it deems fit, prepare a notice -
(A) directing the appellant to produce such document or evidence, as it may specify; or
(B) for examination of any other person, being a witness;
  and send such notice to the National Faceless Appeal Centre;
(c) the National Faceless Appeal Centre shall serve the notice referred to in sub-clause (b) upon the appellant or any other person, being a witness, as the case may be;
(d) the appellant or any other person, as the case may be, shall file his response to the notice referred to in sub-clause (c), within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the National Faceless Appeal Centre;
(e) where a response is filed by the appellant or any other person, as the case may be, the National Faceless Appeal Centre shall send such response to the appeal unit, or where no such response is filed, inform the appeal unit;
(xvii) where the appeal unit intends to enhance an assessment or a penalty or reduce the amount of refund, -
(a) the appeal unit shall prepare a show-cause notice containing the reasons for such enhancement or reduction, as the case may be, and send such notice to the National Faceless Appeal Centre.
(b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon the appellant.
(c) the appellant shall, within the date and time specified in the notice or such extended date and time as may be allowed on the basis of application made in this behalf, file his response to the National Faceless Appeal Centre;
(d) where a response is filed by the appellant, the National Faceless Appeal Centre shall send such response to the appeal unit, or where no such response is filed, inform the appeal unit.
(xviii) The appeal unit shall, after taking into account all the relevant material available on the record, including the response filed, if any, by the appellant or any other person, as the case may be, or report furnished by the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, and after considering any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised in the appeal, —
(a) prepare in writing, a draft order in accordance with the provisions of section 251 of the Act; and
(b) send such order to the National Faceless Appeal Centre along with the details of the penalty proceedings, if any, to be initiated therein;
(xix) the National Faceless Appeal Centre shall upon receipt of the draft order, as referred to in sub-clause (a) of clause (xviii), —
(a) where the aggregate amount of tax, penalty, interest or fee, including surcharge and cess, payable in respect of issues disputed in appeal, is more than a specified amount, as referred to in clause (x) of paragraph 13, send the draft order to an appeal unit, other than the appeal unit which prepared such order, in any one Regional Faceless Appeal Centre through an automated allocation system, for conducting review of such order;
(b) in any other case, examine the draft order in accordance with the risk management strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to —
(A) finalise the appeal as per the draft order; or
(B) send the draft order to an appeal unit, other than the unit which prepared such order, in any one Regional Faceless Appeal Centre through an automated allocation system, for conducting review of such order;
(xx) the appeal unit shall review the draft order, referred to it by the National Faceless Appeal Centre, whereupon it may decide to -
(a) concur with the draft order and intimate the National Faceless Appeal Centre about such concurrence; or
(b) suggest such variation, as it may deem fit, to the draft order and send its suggestions to the National Faceless Appeal Centre;
(xxi) the National Faceless Appeal Centre shall, upon receiving concurrence of the appeal unit, finalise the appeal as per the draft order;
(xxii) the National Faceless Appeal Centre shall, upon receiving suggestion for variation from the appeal unit, assign the appeal to an appeal unit, other than the appeal unit which prepared or reviewed the draft order, in any one Regional Faceless Appeal Centre through an automated allocation system;
(xxiii) the appeal unit, to whom appeal is assigned under clause (xxii), shall, after considering the suggestions for variation —
(a) where such suggestions intend to enhance an assessment or a penalty or reduce the amount of refund, follow the procedure laid down in clause (xvii) and prepare a revised draft order as per the procedure laid down in clause (xviii); or
(b) in any other case, prepare a revised draft order as per procedure laid down in clause (xviii);
 and send the such order to the National Faceless Appeal Centre along with the details of the penalty proceedings, if any, to be initiated therein;
(xxiv) the National Faceless Appeal Centre shall after finalising the appeal as per item (A) of sub-clause (b) of clause (xix) or clause (xxi) or upon receipt of revised draft order as per clause (xxiii), pass the appeal order and-
(a) communicate such order to the appellant;
(b) communicate such order to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as per sub-section (7) of section 250 of the Act;
(c) communicate such order to the [National Faceless Assessment Centre] or the Assessing Officer, as the case may be, for such action as may be required under the Act;
(d) where initiation of penalty has been recommended in the order, serve a notice on the appellant calling upon him to show cause as to why penalty should not be imposed upon him under the relevant provisions of the Act;

(2) Notwithstanding anything contained in sub-paragraph (1), the Principal Chief Commissioner or the Principal Director General, in charge of National Faceless Appeal Centre, may at any stage of the appellate proceedings, if considered necessary, transfer, by an order, the appeal with the prior approval of the Board to such Commissioner (Appeals) as may be specified in the order.