Section 264A of Income Tax Act, 1961: Faceless Revision of Orders
Section 264A enables the Central Government to frame a scheme for faceless revision of orders under Sections 263 and 264 of the Income Tax Act, 1961. Its stated objectives are greater efficiency, transparency and accountability through reduced physical interface, better use of resources and team-based revision with dynamic jurisdiction.
What is faceless revision under Section 264A?
Section 264A provides the statutory framework for a scheme governing revision of orders under Section 263 or Section 264. The Central Government may make such a scheme by notification in the Official Gazette.
Section 263 concerns revision of orders that are erroneous in so far as they are prejudicial to the interests of the revenue. Section 264 concerns revision of other eligible orders, including revision on an application by the assessee, subject to the conditions of that section.
Objectives of the faceless revision scheme
Section 264A(1) identifies three statutory objectives for the scheme:
- Reduced interface: eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible.
- Efficient use of resources: optimising utilisation of resources through economies of scale and functional specialisation.
- Team-based revision: introducing a team-based revision of orders with dynamic jurisdiction.
| Feature | Purpose under Section 264A |
|---|---|
| Technology-based process | Reduces direct interface to the extent technologically feasible. |
| Economies of scale | Supports more efficient utilisation of departmental resources. |
| Functional specialisation | Allows functions to be organised around specialised roles and resources. |
| Team-based revision | Enables revision through a team-based structure rather than depending solely on a traditional location-based process. |
| Dynamic jurisdiction | Supports allocation of revision functions under the scheme without being confined to a conventional fixed jurisdiction model. |
Section 264A(1) - Power to make a faceless revision scheme
The Central Government may, by notification in the Official Gazette, make a scheme for revision of orders under Sections 263 and 264. The scheme-making power is expressly linked to the objectives of efficiency, transparency and accountability stated in Section 264A(1).
Section 264A(2) - Power relating to application of other provisions
For giving effect to a scheme made under Section 264A(1), the Central Government may, by notification in the Official Gazette, direct that a provision of the Income Tax Act shall not apply, or shall apply with the exceptions, modifications and adaptations specified in the notification.
This power is therefore connected to implementation of the faceless revision scheme and operates through a notified direction.
Statutory cut-off for directions under Section 264A(2)
The proviso to Section 264A(2) states that no direction shall be issued after 31 March 2022. This date is part of the statutory text applicable for the period covered by this article.
Section 264A(3) - Parliamentary oversight
Every notification issued under Section 264A(1) and Section 264A(2) is required, as soon as may be after it is issued, to be laid before each House of Parliament.
Section 264A at a glance
| Provision | Rule |
|---|---|
| Section 264A(1) | Authorises a notified scheme for revision under Sections 263 and 264 to improve efficiency, transparency and accountability. |
| Section 264A(1)(a) | Seeks to eliminate interface to the extent technologically feasible. |
| Section 264A(1)(b) | Seeks to optimise resources through economies of scale and functional specialisation. |
| Section 264A(1)(c) | Provides for team-based revision with dynamic jurisdiction. |
| Section 264A(2) | Allows notified exceptions, modifications or adaptations to provisions of the Act for giving effect to the scheme. |
| Proviso to Section 264A(2) | No direction may be issued after 31 March 2022. |
| Section 264A(3) | Requires notifications under subsections (1) and (2) to be laid before each House of Parliament. |
Related provisions
Sections 263 and 264 contain the substantive revisionary jurisdictions to which Section 264A refers. Section 264A supplies the enabling framework for a faceless scheme for those revision proceedings.
Section 264B - Faceless effect of orders is a related provision dealing with a scheme for giving effect to specified appellate and revision orders, including orders under Sections 263 and 264.
Official references
For authoritative statutory and procedural material, refer to the Income Tax Department - Section 264A, Income Tax Department, Income Tax e-Filing Portal and India Code.