Para 6 - Penalty proceedings - Faceless Appeal Scheme, 2021

6. Penalty proceedings (1) Commissioner (Appeals) may, in the course of appeal proceedings, for noncompliance of any notice, direction or order issued under this Scheme on the part of the appellant or any other person, as the case may be, send a notice to the appellant through the National Faceless Appeal Centre for initiation of any penalty proceedings calling upon the appellant to show cause as to why penalty should not be imposed upon him under the relevant provisions of the Act. (2) The National Faceless Appeal Centre shall, upon receipt of notice under sub-paragraph (1), serve the same on the appellant or any other person, as the case may be. (3) The appellant or any other person, as the case may be, shall furnish a response to the show-cause notice referred to in sub-paragraph (2) or in sub-clause (d) of clause (xi) of sub-paragraph (1) of paragraph 5, within the date and time specified in such notice or such extended date and time as may be allowed on the basis of application made in this behalf, to the Commissioner (Appeals) through the National Faceless Appeal Centre. (4) The National Faceless Appeal Centre shall send the response furnished by the appellant or any other person, as the case may be, to the Commissioner (Appeals) or where no such report is furnished, inform the Commissioner (Appeals) accordingly. (5) The Commissioner (Appeals) shall, after taking into account all the relevant material available on the record, including the response furnished, if any, by the appellant or any other person, as the case may be, - (a) prepare a penalty order and send a copy of such order after digitally signing the same to the National Faceless Appeal Centre; or (b) drop the penalty after recording reasons, under intimation to the National Faceless Appeal Centre. (6) In a case where the Commissioner (Appeals) has dropped the penalty, the National Faceless Appeal Centre shall send an intimation thereof, or where the Commissioner (Appeals) sends the order for imposition of penalty, the National Faceless Appeal Centre shall communicate such order, to, - (a) the appellant or any other person, as the case may be; and (b) the Assessing Officer either directly or through the National Faceless Assessment Centre, as the case may be, for such action as may be required under the Act.