New PIJM now accepts submissions exclusively via the Editorial Scholar portal — a dedicated submission & review system.
Go to Editorial Scholar →
Associated Management Consultants Pvt. Ltd. | COPE Member
Scopus Q2 UGC-CARE |
Prabandhan: Indian Journal of Management logo

Prabandhan: Indian Journal of Management

ISSN: 0975-2854 Frequency: Monthly Peer Review: Double-blind Published since: 2008 Language: English
A publication of AMCPL
amcon.co.in
New Delhi, India
Indexed in: Scopus Q2 UGC-CARE Group II Google Scholar J-Gate NISCAIR Crossref Cabell's Journalytics

Exploring the Outcomes of the Faceless Assessment – Insights from the Income Tax Department

Subscription Original Article

Exploring the Outcomes of the Faceless Assessment – Insights from the Income Tax Department

Vaibhav Sitaram Bhagate1,  Leena B. Dam2

1 Research Scholar, Sri Balaji University, Pune - 411 033, Maharashtra

2 Professor , Balaji Institute of Management & Human Resource Development, Sri Balaji University, Pune - 411 033, Maharashtra

Volume 19
Issue 7
Pages 24–43
Year 2026
Received: Aug. 10, 2025 Accepted: May 25, 2026 Published: July 15, 2026
Abstract

Purpose : The present study was designed based on empirical insights from the perspective of Assessing Officers of the Income Tax Department who were directly associated with the Faceless Assessment Process (FAS). The study analyzed the importance of effective communication (EC) and transparency in shaping officers’ positive perceptions (PP) of the system.

Methodology : The study considered constructs such as EC and transparency to analyze their role in the FAS. A structured questionnaire was framed, and data were collected from Assessing Officers associated with the Faceless Unit of the Income Tax Department. Structural equation modeling (SEM) and AMOS software were used to analyze the data.

Findings : We found that EC between the Assessing Officer and the assessee significantly influenced the Assessing Officer’s PP of the FAS. Transparency in the assessment process also contributed to shaping the Assessing Officer’s PP of the FAS.

Practical Implications : It is recommended that policymakers strengthen the system’s communication channels. Enhancing EC may help to improve transparency and ultimately the quality of the assessment orders. Our study has a few limitations and allows scope for future research. Cross-sectional analysis of assessees vs the regulatory authorities can help to derive new insights.

Originality : Unlike earlier studies that were mainly focused on technological advancement and procedural efficiency, the present study developed an empirical understanding of the FAS from the perspective of Assessing Officers who were actually associated with it. The research contributes to the existing literature by highlighting the importance of communication and transparency in the context of faceless assessment.

Keywords faceless assessment system income tax department assessing officers communication transparency structural equation modeling
How to Cite

Vaibhav Sitaram Bhagate, Leena B. Dam (2026). Exploring the Outcomes of the Faceless Assessment – Insights from the Income Tax Department. Prabandhan: Indian Journal of Management, 19(7), 24–43. https://doi.org/10.17010/pijom/2026/v19i7/174665

References
  1. Bhagate, V. S., & Dam, L. B. (2025). Analysis of faceless assessment system implemented by Income Tax Department - Some practical observations. Sri Balaji Society's The Balajian Journal of Management Research, 2(2), 50–58. https://www.researchgate.net/publication/397825620
  2. Browne, M. W., & Cudeck, R. (1992). Alternative ways of assessing model fit. Sociological Methods & Research, 21(2), 230–258. https://doi.org/10.1177/0049124193021002005
  3. Clampitt, P. G. (2012). Communicating for managerial effectiveness: Problems, strategies, solutions (5th ed.). SAGE Publications, Inc.
  4. Dam, L. B., & Hotwani, M. (2018). Financial literacy: Conceptual framework and scale development. SAMVAD: International Journal of Management, 15, 61–69. https://samvad.sibmpune.edu.in/index.php/samvad/article/view/126709
  5. DJ Surfactants v. National Faceless Assessment Centre, 437 ITR 519 (Delhi High Court 2021).
  6. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
  7. Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(1), Article no. 7. https://doi.org/10.17705/1CAIS.00407
  8. Ghauri, P., & Grønhaug, K. (2005). Research methods in business studies: A practical guide (3rd ed.). Pearson Education.
  9. Ghosh, K. (2022). Opportunities and challenges of digital India. International Journal for Multidisciplinary Research, 4(6). https://doi.org/10.36948/ijfmr.2022.v04i06.1170
  10. Gill, S., Sharma, A., & Jain, D. M. (2023). Digital disruptions in education: Students' perspective. Prabandhan: Indian Journal of Management, 16(9), 61–77. https://doi.org/10.17010/pijom/2023/v16i9/173167
  11. Golden Tobacco Ltd. v. National Faceless Assessment Centre, Writ Petition No. 1282 of 2021 (Bombay H.C., October 28, 2021). https://taxguru.in/wp-content/uploads/2021/12/Golden-Tobacco-Limited-Vs-National-Faceless-Assessment-Bombay-High-Court.pdf
  12. Goyal, M. (2022). Income tax reforms–Transforming tax administration through faceless assessment. Special Education, 2(43), 444–464.
  13. Gupta, U., & Agarwal, B. (2023). The role of digital financial services on Indian MSMEs. Indian Journal of Finance, 17(2), 8–26. https://doi.org/10.17010/ijf/2023/v17i2/170125
  14. Gurinovich, A. G., & Shakhmametiev, A. A. (2023). Taxation of economic cross-border operations for providing services in electronic form. Indian Journal of Finance, 17(10), 8–20. https://doi.org/10.17010/ijf/2023/v17i10/171602
  15. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). Pearson Prentice Hall.
  16. Hu, L.-T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118
  17. Jones, A. (2020). MNEs predict Indian faceless e-assessments will increase litigation. International Tax Review. https://www.proquest.com/scholarly-journals/mnes-predict-indian-faceless-e-assessments-will/docview/2442032207/se-2
  18. Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). The Guilford Press.
  19. Kumari, S. P., & Mohanty, M. (2024). Online peer-to-peer (P2P) lending: A systematic literature review using bibliometric analysis. Prabandhan: Indian Journal of Management, 17(7), 57–79. https://doi.org/10.17010/pijom/2024/v17i7/173637
  20. Malpani, P., & Hake, D. M. (2022). Evaluating the constitutional validity of e-assessment, faceless hearing and appeal scheme under the Indian Income Tax Act, 1961 in the light of application of the principles of natural justice. Journal of Positive School Psychology, 6(4), 4445–4452. https://journalppw.com/index.php/jpsp/article/view/4129
  21. Meynhardt, T. (2009). Public value inside: What is public value creation? International Journal of Public Administration, 32(3–4), 192–219. https://doi.org/10.1080/01900690902732632
  22. Ministry of Finance, Government of India. (2025). Time series data financial year 2000-01 to 2024-25. Income Tax Department India. https://www.incometaxindia.gov.in/w/direct_tax_collections_as_on_16.03.2025.pdf
  23. Mittal, S., & Kumar, V. (2024). Analyzing the role of technological capabilities and digital marketing on the performance of e-commerce-based SMEs. Indian Journal of Marketing, 54(12), 45–60. https://doi.org/10.17010/ijom/2024/v54/i12/174658
  24. Mohapatra, A. K., Matta, R., Soni, R., & Hiremath, N. V. (2024). Evaluating the role of artificial intelligence on ESG reporting: Evidence from India. Prabandhan: Indian Journal of Management, 17(11), 8–22. https://doi.org/10.17010/pijom/2024/v17i11/174020
  25. Moore, M. H. (1997). Creating public value: Strategic management in government. Harvard University Press.
  26. Omkar Nath v. National Faceless Assessment Centre Delhi (Earlier National E-Assessment Centre Delhi), W.P.(C) 6158/2021 (Delhi High Court, March 10, 2022). https://taxguru.in/wp-content/uploads/2022/03/Omkar-Nath-Vs-National-Faceless-Assessment-Delhi-High-Court.pdf
  27. Pahari, S., Polisetty, A., Sharma, S., Jha, R., & Chakraborty, D. (2023). Adoption of AI in the banking industry: A case study on Indian banks. Indian Journal of Marketing, 53(3), 26–41. https://doi.org/10.17010/ijom/2023/v53/i3/172654
  28. Para, I. A., & Alam, T. (2024). An empirical analysis of social sector expenditure and economic growth in India: An ARDL approach. Arthshastra Indian Journal of Economics & Research, 13(2), 53–68. https://doi.org/10.17010/aijer/2024/v13i2/173504
  29. Paramasivan, C., & Thangaraj, A. (2018). Digital India programme - Moving towards digital empowerment. SSRN. https://ssrn.com/abstract=4414533
  30. Polisetty, A., & Sheela, P. (2023). Will AI replace humans from human resources? A case analysis. Prabandhan: Indian Journal of Management, 16(6), 25–38. https://doi.org/10.17010/pijom/2023/v16i6/172862
  31. Preeti, Mittal, M., Kaushal, V., & Singh, Y. (2024). Exploring key determinants of tax compliance behavior: A systematic review through bibliometric analysis. Arthshastra Indian Journal of Economics & Research, 13(4), 77–93. https://doi.org/10.17010/aijer/2024/v13i4/174048
  32. Rao, R. K. (2022). Income tax data and facets of transparency (NIPFP Working Paper No. 384). National Institute of Public Finance and Policy. https://www.nipfp.org.in/media/documents/WP_384_2022.pdf
  33. Rawlins, B. (2008). Give the emperor a mirror: Toward developing a stakeholder measurement of organizational transparency. Journal of Public Relations Research, 21(1), 71–99. https://doi.org/10.1080/10627260802153421
  34. Salem Sree Ramavilas Chit Company v. Deputy Commissioner of Income Tax, W.P. No. 1732 of 2020 (Madras High Court, February 4, 2020). https://taxguru.in/income-tax/e-assessment-without-human-interaction-lead-erroneous-assessment.html
  35. Sanjay Aggarwal v. National Faceless Assessment Centre, Delhi, W.P.(C) 5741/2021 (Delhi High Court, June 2, 2021). https://indiankanoon.org/doc/189816290/
  36. Shokeen, A., Kumar, A., & Khanna, S. (2023). Understanding students' behavioral intention to adopt blended learning: Modified UTAUT model. Prabandhan: Indian Journal of Management, 16(11), 43–64. https://doi.org/10.17010/pijom/2023/v16i11/170915
  37. Thakan, J., & Ratnaparkhi, K. (2022). Faceless assessment: A paradigm shift in income tax law. Inspira-Journal of Commerce, Economics & Computer Science, 8(3), 20–24. https://www.inspirajournals.com/uploads/Issues/1858432290.pdf
  38. Tyagi, M. A., & Monga, M. (2022). Faceless assessment: A revolutionary change. Journal of Emerging Technologies and Innovative Research, 9(4), a313–a318. https://www.jetir.org/view?paper=JETIR2204041
  39. Vaghela, P. S., Kapadia, J. M., Patel, H. R., & Patil, A. G. (2023). Effect of financial literacy and attitude on financial behavior among university students. Indian Journal of Finance, 17(8), 43–57. https://doi.org/10.17010/ijf/2023/v17i8/173010
Editorial Scholar

Submit your Research to PIJM

Submit your Manuscript → Author Guidelines