The CBDT has vide Order No. 118 of 2018 dated 24th July 2018 directed the transfers and postings (local changes) of several officers in the grade of Additional and Joint Commissioner of Income-tax with immediate effect and until further orders

The CBDT has issued a Central Action Plan 2018-19 in which it is inter alia stated that there are 3,21,843 appeals pending before the CsIT(A) as on 01.04.2018. The demand involved in these appeals is a whopping Rs. 6.38 lakh crore.

In order to reduce the number of appeals pending before the CIT(A), the CBDT has issued a clear-cut action plan in which specific targets for disposal of appeals have been assigned. The CBDT has also offered incentives to CsIT(A) for passing “quality” orders. Incentives are offered where the CIT(A) enhances the assessment, strenghtens the stand of the AO or levies penalty u/s 271(1)(c) of the Act.

The AOs have been directed to make proper representation before the CIT(A) either by attending personally or by filing written submissions.

PCsIT and CCsIT have also been assigned responsibilities to ensure that the CsIT(A) and AOs discharge their duties in the manner envisaged by the CBDT

The CBDT has issued two office Orders bearing Nos. 109 and 110 of 2018, both dated 12th July 2018, to state that the ad-hoc appointments of several Income Tax Officers to the grade of Assistant Commissioner of Income Tax has been extended by the Hon’ble President

Further to the press release dated 11th July 2018 of the Ministry of Finance, the CBDT has issued Circular No 3/2018 dated 11th July 2018 by which the precise scope of the move to withdraw low tax effect appeals has been explained. In particular, the CBDT has explained the meaning of the term “tax effect”. It has also been considered whether the decision to withdraw appeals which are below the specified limits should be given prospective or retrospective effect. The exceptions to when appeals can be contested even when they are below the prescribed limits are also clearly specified

The Ministry of Finance has announced a substantial enhancement in the limits for filing departmental appeals before the ITAT, Tribunal and Supreme Court. The impact of the new limits is that out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48% of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 41%.

The CBDT has issued Office Order No. 104 of 2018 dated 6th July 2018 to state that the promotion of several officers in the grade of Commissioner of Income-tax (CIT) (level 14 in the pay matrix of Rs. 1,44,200 – 2,18,200) has been regularized with effect from the date of assumption of charge of the post by them. A similar Order No. 103 of 2018 dated 6th July 2018 has been issued with respect to Chief Commissioners of Income-tax (CCIT)

Hon’ble Sushil Chandra, the Chairman of the CBDT, has written an irate letter dated 4th July 2018 to the Principal Commissioners in which he has stated that the ‘High Pitched Scrutiny Assessments Committee’ which was set up amidst much pomp and show, has been a non-starter. The learned Chairman has directed the PCsITs to get their act in order and ensure that the Committee does its work as intended.

The learned Chairman has also directed that AOs who are found guilty of making high-pitched additions on frivolous grounds, non-observance of principles of natural justice, non-application of mind, gross negligence etc should be transferred without any delay and subjected to disciplinary action

The CBDT has vide Office Order No. 102 of 2018 dated 3rd July 2018 ordered the transfer and posting of several officers in the grade of Joint Commissioners of Income-tax with immediate effect and until further orders