Case Laws & Commentary - Income-tax Act, 1961 (as amended by the Finance Act, 2026) - bharattax.co Treatise
Provision: Section 135A - empowers the Central Government to make a scheme, by notification, for faceless exercise of the powers of calling for information (section 133), collecting information (section 134), the powers of senior authorities to enquire (section 135) and the power to call for information by the prescribed authority (section 133C), so as to impart greater efficiency, transparency and accountability by eliminating the interface to the extent technologically feasible and through team-based exercise.
Chapter / Part: Chapter XIII, Part C - Powers.
Inserted: By the Finance Act, 2022, with effect from 1 April 2022 (substituting the earlier section 135A inserted by the Finance Act, 2021).
FA 2026 status: Not amended by the Finance Act, 2026.
Nature: Recent, enabling provision for faceless information-gathering. No direct case law (candour rule); governed by notified schemes and cognate faceless jurisprudence.
A. SECTION COMMENTARY
Faceless information-gathering
Section 135A is the information-gathering counterpart of the faceless reforms (section 144B for assessment, section 130 for jurisdiction). It authorises the Central Government to notify a scheme under which the powers to call for and collect information under sections 133, 133C, 134 and 135 are exercised in a faceless, team-based manner, eliminating so far as technologically feasible the personal interface between the authority and the person from whom information is sought, and optimising the use of resources through functional specialisation. For that purpose the Central Government may direct that provisions of the Act apply with the exceptions, modifications and adaptations specified in the notification, which is to be laid before Parliament.
Character and candour
Section 135A re-engineers the mode of exercising existing information powers; it does not enlarge their substantive scope. The conditions and safeguards attaching to sections 133 (including the clause (6) approval requirement) and 133C therefore continue to apply within the faceless scheme. There is, as yet, no reported decision construing section 135A; this is stated candidly. The fairness standards that the courts have insisted on across the faceless machinery - an effective opportunity to respond and a reasoned treatment of the response - supply the nearest governing principles and are the benchmark against which any scheme framed under section 135A will be tested.
B. STATUTORY POSITION (verbatim text)
Reproduced below is section 135A as it stands in the bare Act.
135A. (1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of calling for information under section 133, collecting certain information under section 133B, or calling for information by prescribed income-tax authority under section 133C, or exercise of power to inspect register of companies under section 134, or exercise of power of Assessing Officer under section 135 so as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based exercise of powers, including to call for, or collect, or process, or utilise, the information, with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022: [Provided further that the Central Government may amend any direction, issued under this sub-section on or before the 31st day of March, 2022, by notification in the Official Gazette.]
(3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Note: Section 135A has not been directly construed in any reported decision; the cognate authorities are those on the fairness standards governing faceless/centralised procedures and on the underlying information powers (section 133).
C. AUTHORITIES
Cluster 1 - Faceless information-gathering must observe its safeguards (cognate)
Mantra Industries Ltd. v. National Faceless Assessment Centre (2022) 441 ITR 467 (Bom); SLP before the Supreme Court
Forum / Citation: Bombay High Court, 11 October 2021; Special Leave Petition admitted by the Supreme Court (11 April 2022). Reported: (2022) 441 ITR 467 (Bom); (2021) 131 taxmann.com 165; (2021) 283 Taxman 459.
Held: The faceless mode of administration does not dilute the mandatory procedural and natural-justice requirements; a faceless action taken in breach of them is liable to be set aside.
Principle: A scheme framed under section 135A must observe the safeguards attaching to the underlying powers and the requirements of natural justice.
Relevance: Supplies the benchmark for faceless information-gathering under section 135A.
Kathiroor Service Cooperative Bank Ltd. v. CIT (CIB) (2014) 360 ITR 243 (SC)
Forum / Citation: Supreme Court of India, 27 August 2013. Reported: (2014) 360 ITR 243 (SC); (2013) 263 CTR 129; (2014) 220 Taxman 41; (2014) 14 SCC 352.
Held: The information powers (section 133(6)) are broad but channelled by the proviso's approval requirement where information is not referable to a pending proceeding.
Principle: The substantive safeguards of the information powers survive their faceless re-packaging under section 135A.
Relevance: Confirms that section 135A changes the mode, not the substance or safeguards, of the information powers.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the bare Act (Chapter XIII, ss. 116-138). Each authority is cited with its full parallel reporter citations as reported; Supreme Court, High Court and Income Tax Appellate Tribunal (ITAT) rulings are identified as such. Where a section has not been directly construed, that is stated candidly and the nearest governing authority is given. For professional reference; not legal advice.
CHAPTER XIII - INCOME-TAX AUTHORITIES
Section 135A - Faceless Collection of Information
Case Laws & Commentary - Income-tax Act, 1961 (as amended by the Finance Act, 2026) - bharattax.co Treatise
Provision: Section 135A - empowers the Central Government to make a scheme, by notification, for faceless exercise of the powers of calling for information (section 133), collecting information (section 134), the powers of senior authorities to enquire (section 135) and the power to call for information by the prescribed authority (section 133C), so as to impart greater efficiency, transparency and accountability by eliminating the interface to the extent technologically feasible and through team-based exercise.
Chapter / Part: Chapter XIII, Part C - Powers.
Inserted: By the Finance Act, 2022, with effect from 1 April 2022 (substituting the earlier section 135A inserted by the Finance Act, 2021).
FA 2026 status: Not amended by the Finance Act, 2026.
Nature: Recent, enabling provision for faceless information-gathering. No direct case law (candour rule); governed by notified schemes and cognate faceless jurisprudence.
A. SECTION COMMENTARY
Faceless information-gathering
Section 135A is the information-gathering counterpart of the faceless reforms (section 144B for assessment, section 130 for jurisdiction). It authorises the Central Government to notify a scheme under which the powers to call for and collect information under sections 133, 133C, 134 and 135 are exercised in a faceless, team-based manner, eliminating so far as technologically feasible the personal interface between the authority and the person from whom information is sought, and optimising the use of resources through functional specialisation. For that purpose the Central Government may direct that provisions of the Act apply with the exceptions, modifications and adaptations specified in the notification, which is to be laid before Parliament.
Character and candour
Section 135A re-engineers the mode of exercising existing information powers; it does not enlarge their substantive scope. The conditions and safeguards attaching to sections 133 (including the clause (6) approval requirement) and 133C therefore continue to apply within the faceless scheme. There is, as yet, no reported decision construing section 135A; this is stated candidly. The fairness standards that the courts have insisted on across the faceless machinery - an effective opportunity to respond and a reasoned treatment of the response - supply the nearest governing principles and are the benchmark against which any scheme framed under section 135A will be tested.
B. STATUTORY POSITION (verbatim text)
Reproduced below is section 135A as it stands in the bare Act.
135A. (1) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of calling for information under section 133, collecting certain information under section 133B, or calling for information by prescribed income-tax authority under section 133C, or exercise of power to inspect register of companies under section 134, or exercise of power of Assessing Officer under section 135 so as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based exercise of powers, including to call for, or collect, or process, or utilise, the information, with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022: [Provided further that the Central Government may amend any direction, issued under this sub-section on or before the 31st day of March, 2022, by notification in the Official Gazette.]
(3) Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Note: Section 135A has not been directly construed in any reported decision; the cognate authorities are those on the fairness standards governing faceless/centralised procedures and on the underlying information powers (section 133).
C. AUTHORITIES
Cluster 1 - Faceless information-gathering must observe its safeguards (cognate)
Mantra Industries Ltd. v. National Faceless Assessment Centre (2022) 441 ITR 467 (Bom); SLP before the Supreme Court
Forum / Citation: Bombay High Court, 11 October 2021; Special Leave Petition admitted by the Supreme Court (11 April 2022). Reported: (2022) 441 ITR 467 (Bom); (2021) 131 taxmann.com 165; (2021) 283 Taxman 459.
Held: The faceless mode of administration does not dilute the mandatory procedural and natural-justice requirements; a faceless action taken in breach of them is liable to be set aside.
Principle: A scheme framed under section 135A must observe the safeguards attaching to the underlying powers and the requirements of natural justice.
Relevance: Supplies the benchmark for faceless information-gathering under section 135A.
Kathiroor Service Cooperative Bank Ltd. v. CIT (CIB) (2014) 360 ITR 243 (SC)
Forum / Citation: Supreme Court of India, 27 August 2013. Reported: (2014) 360 ITR 243 (SC); (2013) 263 CTR 129; (2014) 220 Taxman 41; (2014) 14 SCC 352.
Held: The information powers (section 133(6)) are broad but channelled by the proviso's approval requirement where information is not referable to a pending proceeding.
Principle: The substantive safeguards of the information powers survive their faceless re-packaging under section 135A.
Relevance: Confirms that section 135A changes the mode, not the substance or safeguards, of the information powers.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the bare Act (Chapter XIII, ss. 116-138). Each authority is cited with its full parallel reporter citations as reported; Supreme Court, High Court and Income Tax Appellate Tribunal (ITAT) rulings are identified as such. Where a section has not been directly construed, that is stated candidly and the nearest governing authority is given. For professional reference; not legal advice.