Section 264B of Income Tax Act 1961 - Faceless Effect of Orders
Section 264B of the Income-tax Act, 1961 provides the statutory framework for a faceless scheme for giving effect to specified appellate and revision orders. It was inserted with effect from 1 November 2020 to promote efficiency, transparency and accountability in tax administration.
Meaning and purpose of Section 264B
The expression faceless effect of orders refers to a technology-enabled mechanism under which effect may be given to specified appellate or revision orders with reduced physical interface between the income-tax authority and the assessee or other person. Section 264B authorises the Central Government to frame such a scheme by notification in the Official Gazette.
The provision covers giving effect to orders under Sections 250, 254, 260, 262, 263 and 264 of the Income-tax Act, 1961. Broadly, these provisions concern orders of the Commissioner (Appeals), the Appellate Tribunal, the High Court, the Supreme Court and revisionary authorities.
Section 264B - statutory provision explained
Sub-section (1): Power to make a faceless scheme
The Central Government may, by notification in the Official Gazette, make a scheme for giving effect to an order under Section 250, 254, 260, 262, 263 or 264. The statutory objectives are to improve efficiency, transparency and accountability.
The scheme may seek to achieve these objectives by eliminating direct interface to the extent technologically feasible, optimising the use of resources through economies of scale and functional specialisation, and introducing team-based giving effect to orders with dynamic jurisdiction.
Sub-section (2): Modification for implementing the scheme
For giving effect to a scheme made under sub-section (1), the Central Government was empowered, by notification in the Official Gazette, to direct that provisions of the Act would not apply or would apply with specified exceptions, modifications and adaptations.
The proviso states that no such direction could be issued after 31 March 2022. This time limit relates to the power to issue directions under sub-section (2); it should not be read as deleting Section 264B itself.
Sub-section (3): Parliamentary oversight
Every notification issued under sub-sections (1) and (2) is required to be laid before each House of Parliament as soon as may be after it is issued.
Orders covered by Section 264B
- Section 250: procedure and disposal of appeals by the Commissioner (Appeals).
- Section 254: orders of the Income Tax Appellate Tribunal.
- Section 260: effect of decisions of the High Court or Supreme Court in the case stated under the relevant provisions.
- Section 262: hearing and effect of judgments in appeals before the Supreme Court.
- Section 263: revision of orders considered erroneous and prejudicial to the interests of the Revenue.
- Section 264: revision of other orders by the competent revisionary authority, subject to the statutory conditions.
Practical effect of a giving-effect order
After an appellate or revision authority modifies, sets aside or otherwise decides a tax matter, consequential action may be necessary at the departmental level. Depending on the order, this can involve recomputation of income, tax, interest, demand or refund and other consequential adjustments. Section 264B supplies the enabling framework for a notified faceless mechanism for this stage of administration.
Section 264B and the Income-tax Act, 2025
For tax years beginning on or after 1 April 2026, the Income-tax Act, 2025 is the governing enactment. However, repeal of the 1961 Act does not by itself invalidate liabilities, proceedings or actions relating to earlier periods that continue under the applicable savings and transition provisions. Accordingly, Section 264B remains relevant when dealing with matters governed by the Income-tax Act, 1961.
Last reviewed: 29 September 2026. Readers should verify case-specific applicability and subsequent notifications before acting on this information.