CBDT Cracks Whip To Rein In Delay In Giving Effect To CIT(A)’s Order

The CBDT has issued a directive dated 07.10.2015 in which it has noted that the implementation of its previous directive that Assessing Officers should give prompt and proper effect to the appeal orders of the CIT(A) is found wanting. The CBDT has sternly directed the Pr. CCsIT, DGsIT and CCsIT to urgently monitor that the Assessing Officers give timely effect to the CIT(A)’s order and that there is no grievance caused to taxpayers

F. No. 279/Misc/141/2015-1TJ
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Room No.276, Samrat Hotel, New Delhi

Dated the 7th October, 2015


All Principal Chief Commissioners of Income Tax
All Director Generals of Income Tax

Sub:- Monitoring of timely effect to CIT(A) order — reg.


Instruction No.0.8 of 2011 contained timelines for filing appeals before the ITAT and giving effect to the eider of CIT(A). Even while the Department seeks to implement a non-adversarial regime, grievances are being received on account of delays in giving effect to the orders of CIT(A).

2. Para 4 of Instruction No.8 of 2011 on Appeal Effect and Scrutiny Report states:

i. On receipt of the order of the CIT(A), the AO shall give appeal effect promptly and properly. The Range Head Shall monitor correctness and timely appeal effect in respect or orders of CIT(A).

ii. Any pendency in regard to the appeal effect beyond one month shall be reported by the Range Head to the CIT in the DO reporting monthly activities of the Range, along with reasons for the delay.

iii. With a view to provide relevant inputs to the decision making authority for filing appeals to 1TAT, a format for scrutiny report is prescribed herewith at Annexure-II,

iv. In respect of appeals decided in favour of revenue, the AO shall submit only Part-I of the proforma in Annexure-II to the Range Head and there will be no need to fill in other parts of the proforma in such cases.

Annexure-I requires the scrutiny report to be submitted within 30 days after giving appeal effect. Part-1 of Annexure-II is required to be filled in case of all appeals and includes the date of receipt of CIT(A) order in CiT office as well as the date of appeal effect.

3. Whereas, the Instruction provides for adequate procedural control, the implementation of the same in the field has been found wanting. Pr. CsIT are directed to ensure that Range Heads report the no. of appeals pending over 30 days for want of appeal effect in their D.O. letters and to enquire into the cases of delay and expedite the same. Pr. CCsIT/OCsIT/CCsIT must attend to this grievance urgently since it reflects a lack of monitoring and adherence to the Instruction of the Board.

4. This issues with the approval of Member (A&J), CBDT.

(D.S. Chaudhry)
Commissioner of income Tax (A&J)
Telefax: 26182639

14 comments on “CBDT Cracks Whip To Rein In Delay In Giving Effect To CIT(A)’s Order
  1. BOBJEE KURIEN says:

    It is now almost 5 months since the instructions were issued . I wonder what is the result . The Chairman fumes.!!!!!!!!Is is an open secret The CBDT do not know how to monitor the implementation of the directions.Ha ha ha

  2. Rajesh Bhardwaj says:

    Dear Shri Kurien, you have hit the nail on the head. You are absolutely right that CBDT need not go on reiterating its instructions again and again. In fact, CBDT throws the entire responsibility on Pr CCIT, DGIT,CCIT forgetting that there are strong officers and staff unions who will create ” problems ” for them if they try to throw the rule book at the AOs. It would be better if CBDT gets report of delayed action byAOs from the supervisory authorities and initiates disciplinary action in suitable cases or better still get the information of delayed action in giving appeal effects/ rectification/ refund from the long suffering tax payers or the counsels through email and take suitable action. The institution of Ombudsman in the income tax department should be strengthened and lot of instances of delay ( deliberate?) can be obtained from her/ his offices by the CBDT.

    • bobjee kurien says:

      It is not difficult to monitor the progress of work relating to giving the appeal effect . It is very easy.Just enter the date of receipt is the computer .The program in the computer will enable proper monitoring of the case.If the report does not come in by the date the same can be noted . If the officer continues to default the administration does have a reasonable cause to act .The level of responsibility is already laid out by the instruction issued four years earlier . Just follow and initiate action , Copy will go automatically to the dossier of the officer.The responsibility gets fixed and administration cannot be lax.This can be also monitored by the board for the instructions are issued by the board for compliance .Let the system be put in place results will automatically follow. Thank you Rajesh Bharadwaj.The will is all that is required

      • bobjee kurien says:

        I just want to cite a case in a private sector. I had made an inquiry and the head office directed the local office to follow up . Promptly the local person came and took my requirements and said he would call back in three days . I called him up twice after that giving a week time to respond. Later seeing the same advt I remarked that the company is neither serious nor interested in following up the the inquiry and I was not interested in their product .This time the reaction was swift . Within twelve hours the man was at my place with the personal took down the details came up with the estimates and the work was complete in quick time . I asked the person what happened . The company levied a penalty on the said person for not attending to an inquiry by the Head quarters.If that is the alacrity of action what prevents the highest body in implementing the direction.!!!Action aught to be quick for effective management.Results will follow.

  3. The monitoring of CBDT instructions are required to be followed by the AOs so as to give a look of good governance
    the appeal effect is the major grievance of the taxpayers and CBDT should not be lax while dealing with such grievances…

    • bobjee kurien says:

      Instructions are issued to make administration transparent and in case of any difficulty to iron out such difficulty.Board need not reiterate its instructions time in and time out.If the officials below them are unable to follow them it is better that they are asked to leave gracefully. The board needs to be absolutely strict in the compliance of instructions issued by it. There are checks and balances built into the system .The problem is that the board members are not serious about the compliance of its instructions.Show one instance where the board has taken non compliance to its logical end.

  4. Dipakkumar J Shah says:

    Good information. Keep it up for members and professionals.

  5. b.s.waghela says:

    You can call the Central Board of Direct Tax as BLANK BOARD. Beyond issueing Instructions/Circulars it is not watching its implementation. CBDT feels that once it has issued Instructions/Circulars its duty is over. Only remedy to remove ills of the department is to remove some IT officers (including Pr.CITs) under Rule 56(j) of the Fundamental Rules. This Rule was invokes in 1975 in large number of cases and it had salutary effect. But unfortunately most of the officers of the Department are unaware of any such Rule.

  6. Dipakkumar J Shah says:

    An eye opener to all. Say something very cutely and follow the other way??!! Is it Governance of C B D T , and MODI Government?

  7. Varaprasad Daitha says:

    The department had collected full taxes originally demanded of some Rs.15.45 Crores and also taken similar amount as a deposit lien with the department without passing necessary modification orders in a group of cases even after CIT (A) and ITAT passed their orders. When passed necessary modification orders totaling to about 875 of such orders the resultant refunds were not issued. This is the status for last 20 years which Sri. Bobjee Kurien referring. The matters went to the High Court level and the HC allowed to adjust the amounts under lien but the department is not adjusting and it is releasing interest on such deposits pending with bank under lien. This is because the amounts which claimed before HC are not correct. The CBDT knowing full of all facts is maintaining silence because its officers would be in soup.

    Why the CBDT is turning a Nelson’s eye on this issue?

  8. Dipakkumar J Shah says:

    Good statement. In spirit !!!! It should be implemented in strict sense. Not on Paper only.At the same time there should be a proper follow up for reporting every month to higher authority that it is being implemented properly. So is in the case of after passing order refund order should be given by ECS immediately. only then the spirit would go on .Jai Hind.

  9. K.VASANTKUMAR says:

    Why the CBDT specifically refers to CIT(A) order. Is it that if it is Tribunal order the AO could take as much time as possible. In a case of Local body at Hyderabad though it is more than a year and half the order of the tribunal is not given effect to as it results in refund of more than Sixteen crores. Who will be held responsible for this.

    • bobjee kurien says:

      why just a local body . The Board which has been regularly monitoring the case on a day to day basis has not been able to rein in its officers . The appeal orders which are passed in favour of the assessee is kept in abeyance for the last twenty years. Mind you this case is being monitored on a weekly basis by the Board and false reports are given to the parliament. Who is responsible in the board for such callous behaviour .A formal grievance petition to the board is not yet redressed .

  10. Nem Singh says:

    Welcomable, CBTD direction to the Assessing Authorities!

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