The CBDT has issued a directive dated 18.02.2016 by which it has directed Assessing Officers to conduct immediate verification of outstanding demands where intimation u/s 245 has been issued by CPC and taxpayers have disputed the demands.
The CBDT has issued a directive dated 18.02.2016 by which it has directed Assessing Officers to conduct immediate verification of outstanding demands where intimation u/s 245 has been issued by CPC and taxpayers have disputed the demands.
In a plea made by the department the high court of AP authorised appropriation of the lien on fixed deposits against the arrears of the assessee as mentioned in the sworn affidavit filed by the CIT.This the court authorised in 2006.Till date the department has not appropriated the fixed deposit against the arrears.
This is a bizzare case where the department was authorised by the High court to collect the taxes.The department has released the lien on the amount in excess of the arears.What has the CBDT TO SAY ON SUCH MATTERS.
In the directive it had stated that the AOs were to verify the veracity of claims made by the assessees. What about the department making claims of demands due from assessees and those arrears items not figuring in the outstanding demands. For instance in the case of Nizam group of cases of Hyderabad Pr.CCIT charge, the department had made a claim of about Rs. 8.99 Crores as outstanding and got permission to adjust from out of the deposit liened to the department. Till date the same had not been done. Where the arrears are accounted for and how they are going to adjust from out of the permission granted by High Court.
I am reminded of an old nursery rhyme of humpty dumpty where all the kings horses and all the kings men could not put humpty dumpty together againIn the nizam group of cases the local authorities are at their wits end.After 20 years of pleading they are trying for a compromise to save their face before the high court which has posted the case for final hearing on 7 March 2016.
AM INTERESTED IN RECEIVING FURTHER NOTIFICATIONS / DIRECTIVES IN THIS REGARDS.