Exploring the Outcomes of the Faceless Assessment – Insights from the Income Tax Department
Authors
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Vaibhav Sitaram Bhagate
Research Scholar, Sri Balaji University, Pune - 411 033, Maharashtra
https://orcid.org/0009-0009-7267-2336
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Leena B. Dam
Professor (Corresponding Author), Balaji Institute of Management & Human Resource Development, Sri Balaji University, Pune - 411 033, Maharashtra
https://orcid.org/0000-0002-3663-3489
DOI:
https://doi.org/10.17010/pijom/2026/v19i7/174665Keywords:
faceless assessment system, income tax department, assessing officers, communication, transparency, structural equation modeling.JEL Classification Codes : D83, H26, H83, O33
Publication Chronology: Paper Submission Date : August 10, 2025 ; Paper sent back for Revision : May 13, 2026 ; Paper Acceptance Date : May 25, 2026 ; Paper Published Online : 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.
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References
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