CBDT orders I-T offices to set up grievance cells
PrintListen to this Article
The CBDT, in its notification, acknowledges that: "The tendency to frame high-pitched and unreasonable I-T assessment orders is still persisting due to which grievances are being raised by the taxpayers. Such grievances not only reflect harassment of taxpayers but also lead to generation of unproductive work for the I-T department."
Such unreasonable I-T orders, especially in the realm of international taxation and transfer pricing, have been a cause of concern for the finance ministry. The high I-T collection targets assigned to tax officers, on which their performance appraisal is based, has often been blamed for such I-T assessments. If the I-T assessments are frivolous in nature, the tax department loses the case when the taxpayer files an appeal and the matter is disposed of by the I-T appellate tribunals (ITATs) or courts.
Recently, Prime Minister Narendra Modi, speaking at the Economic Conclave in Delhi, had announced a change in the performance appraisal mechanism. "The appraisal should reflect whether or not the officer's orders and assessments have been upheld on appeal. This will deter corruption and also motivate officers to pass correct orders," he had said. The additional measure of setting up of local grievance committees will further usher in a tax-friendly regime, said a government official.
The local committees comprising of three high-ranking I-T officers are to be set up by November end. On receiving a grievance petition from the taxpayer, the committee has to dispose it within two months.
The committee's responsibility is to examine whether there is a 'prima facie' (apparent) case of high-pitched I-T assessment, non-observance of principles of natural justice (there should be no bias), non-application of mind or even gross negligence on part of the I-T officials involved in the assessment of that particular case.
These committees will ascertain whether or not the additions made to the income of the taxpayer in the assessment order, resulting in high I-T demands, are backed by sound reason or logic. It will also examine whether the provisions of law have been grossly misinterpreted or obvious and well established facts on records have been outright ignored by the I-T officials. If the committee concludes that an unreasonable and high-pitched addition to the income of the taxpayer has been made by the tax official, a report will be sent by it to the Principal Chief Commissioner of Income-Tax (Pr CCIT), who is responsible for tax administration. The Pr CCIT will then take suitable administrative action in a bid to curtail litigation.
CBDT's notification clarifies that the objective of setting up of such local committees is to effectively and efficiently deal with the genuine grievances of the taxpayers and support an environment where I-T assessment orders are passed in a fair and reasonable manner. Such local committees are not an alternative or additional channel of filing an I-T appeal. (Times of India)
Category : Income Tax | Comments : 1 | Hits : 725
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
Comments
CA.Subhash Chandra Podder
11-Nov-2015 , 05:26:44 pmGood information .