Section 245 Income Tax Act 2025: How Does Faceless Jurisdiction Work?

What is faceless jurisdiction under Section 245?

Faceless jurisdiction describes a framework in which statutory powers and functions may be assigned and exercised under a government-notified scheme without requiring the traditional direct interface between a taxpayer and a particular local officer. Section 245 is part of Chapter XIV, dealing with tax administration, and must be read alongside Sections 241 to 244.

The section does not itself mean that every proceeding is automatically faceless or that a taxpayer may disregard a lawful notice. The actual procedure depends on the scheme and notifications applicable to the proceeding.

Section 245(1): What can a faceless jurisdiction scheme cover?

The Central Government may, by notification, make a scheme for any of four statutory purposes:

1. Section 241: Exercise of powers and performance of functions assigned to income-tax authorities.
2. Section 242: Vesting jurisdiction in an Assessing Officer.
3. Section 243: Exercise of the power to transfer cases.
4. Section 244: Exercise of jurisdiction following a change in the incumbent of an office.

The provision permits schemes addressing these subjects; it does not, by itself, set out all operational steps or identify which unit will handle a particular taxpayer's case.

Section 245(2): Why is faceless jurisdiction introduced?

A scheme under subsection (1) is intended to increase efficiency, transparency and accountability through three measures:

Reducing direct interaction

Eliminating the interface between the income-tax authority and the assessee or another person, to the extent technologically feasible.

Better use of resources

Optimising resources through economies of scale and functional specialisation, allowing different functions to be handled efficiently.

Team-based and dynamic jurisdiction

Introducing concurrent, team-based exercise of powers by two or more income-tax authorities in relation to specified areas, persons, income or cases, using dynamic jurisdiction. This means jurisdiction may be organised by functions or allocations under the scheme rather than solely by a fixed local officer.

Section 245(3): Can statutory provisions be modified for a scheme?

To give effect to a scheme under subsection (1), the Central Government may issue a notification directing that provisions of the Act do not apply or apply with specified exceptions, modifications or adaptations. The scope of any change must be determined from the actual notification; subsection (3) is not itself a blanket exemption from compliance.

Section 245(4): What parliamentary oversight applies?

Every notification issued under subsection (1) or subsection (3) must, as soon as may be after issuance, be laid before each House of Parliament. This is the statutory legislative-oversight requirement for notifications under Section 245.

Relevant statutory terms and concepts

These short explanations aid understanding; where a term is expressly defined in the Act, the statutory definition governs.

How does Section 245 affect taxpayers in practice?

Example 1: A case is allocated to a different unit

A valid notified scheme may allocate functions to an authorised officer or team even if the taxpayer's earlier dealings were with a local Assessing Officer. The relevant allocation and notification should be checked before alleging lack of jurisdiction.

Example 2: A case is transferred

Section 243 regulates transfers of cases. Section 245 permits a scheme addressing the exercise of that power. Whether a hearing, reasons or other procedural requirements apply must be assessed under the governing statutory provisions and valid scheme or notification.

Example 3: An officer changes during proceedings

Section 244 addresses continuation of proceedings when an officer is succeeded by another. A Section 245 scheme may govern the exercise of that jurisdiction in the faceless framework.

Frequently asked questions

Does Section 245 make all income-tax proceedings faceless?

No. It empowers the Central Government to notify schemes for specified jurisdictional functions. The applicable scheme determines its actual coverage.

Can more than one officer exercise jurisdiction?

Section 245(2)(c) expressly contemplates team-based concurrent exercise of powers by two or more authorities with dynamic jurisdiction under a scheme.

Can a taxpayer challenge an incorrect jurisdictional allocation?

Any challenge depends on the facts, the relevant statutory provisions and the applicable scheme. Section 242 and the notified allocation should be examined promptly, including any objection deadlines.

Can the government change how provisions apply under a faceless scheme?

Section 245(3) permits specified exceptions, modifications and adaptations by notification for implementing a scheme, subject to the wording and legal limits of the notification.

Is Section 245 the same as Section 245 of the 1961 Act?

No. Section numbers have changed. The corresponding faceless-jurisdiction provision in the Income-tax Act, 1961 was Section 130. Always identify the relevant Act and tax period.

Statutory references and official sources

Read Section 245 together with Sections 241, 242, 243 and 244 of the Income-tax Act, 2025, and any scheme or notification applicable to the particular proceeding.