CBDT To Discipline “Least Performing” CsIT(A)

The CBDT has issued a directive to the PCsIT seeking details of the “least performing” CsIT(A). It is not specified as to what constitutes “least performing”.

Presumably, the reference is to the number of appeals disposed of by the Ld CsIT(A) vis-à-vis the targets and achievement.

Presumably, the defaulting CsIT(A) will be subject to disciplinary action.

It may be recalled that in the Central Action Plan 2018, the CBDT has chalked out an ambitious strategy to require CsIT(A) to dispose appeals within specified time frames.

The demand amount locked up in the appeals before the CsIT(A) is a staggering sum of Rs. 6.38 lakh crore.

The CBDT has also promised to give “incentives” to CsIT(A) for passing “quality” orders.

However, the definition of “quality” orders has left much to be desired.

The CBDT has stated that “Quality cases would include cases where-

(a) enhancement has been made,

(b) order has been strengthened, in the opinion of the CCIT, or

(c) penalty u/s 271(1)I has been levied by the CIT(A)“.

This implies that CsIT(A) will now go on a rampage and enhance assessments and levy penalty so as to earn “incentives” and stay in the good books of the CBDT.

Needless to say, this is a disturbing state of affairs for hapless taxpayers. It is hoped that the CBDT will issue appropriate clarification that the “quality” of the orders will be determined on whether the orders are ultimately upheld by higher appellate forums or not.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi the 27th July, 2018


All Pr. Chief Commissioners of Income Tax Madam/Sir
Sub: Performance of Commissioners of Income Tax(Appeals) during the current Financial Year- reg.

Kindly refer to the Video Conference held today.

I am directed to request you to furnish the details of 2 least performing CsIT(Appeals) of your region (5 in Delhi & Mumbai Regions) in the following format:











Sr. No.

Name           of
Officer charge including additional charge

the and held

Action points





Reasons      for
shortfall,        if
any             and
efforts made to achieve the targets

is                  of Pr.
CCIT     in
of      item
in Col.-6

No.        of

No. cases


No.         of

No. cases





Disposal of Appeals









Information in respect of substantive charge and additional charge should be furnished separately. The above information may kindly be furnished by 3rd August, 2018 by e-mail at vagya.sharma@gov.in or commcoord-cbdt@nic.in.
Yours faithfully,

(Y. D. Sharma)
Commissioner of Income Tax(C&S), CBDT

4 comments on “CBDT To Discipline “Least Performing” CsIT(A)
  1. Rajesh Bhardwaj says:

    Sir, I totally agree with you. CBDT should not meddle with judicial functions of CIT (A) which has been by and large fair and judicious till now. A quality order by CIT (A) could even be where entire demand has been reduced. To illustrate, in a recent case in delhi AO on mere assertion in a TEP that investment by the lady in a property is more than declared made addition of over Rs 40 lakhs. There was no proof to support the assertion and complaint was actuated by malice as there was marital dispute. The addition was knocked off by CIT (A) by a reasoned order.

  2. Varaprasad Daitha says:

    The CBDT had proposed disciplinary action for least performing CsIT(A). What about the CBDT which has not disposed off the grievance petitions filed before it in 2005 itself and inordinate delay in conclusion of disciplinary proceedings for more than 10 years? Who will take disciplinary action against them? Does CBDT wished to accumulate the disciplinary actions proposed against CsIT)A) for more than 10 years? Does CBDT want the CsIT(A) to dispose without application of mind in order to avoid proposed disciplinary action? What exactly does the CBDT to deliver?

  3. Adv. I.S.Verma says:

    These instructions are beyound the scop and ambit of the powers vested with the C.B.D.T by virtu of the provisions of section 119 of the Act. CIT(A) are subordinate to the C.B.D.T. till the stage of their appointment as such and not for the purpose of exercising of their Appellate Powers given by the Statute itself.

  4. Sekhar says:

    In substance ,CBDT assures incentives to CIT-A(s) for making enhancements: a clear case of brazen interference in the functioning of an authority vested with judicial powers by the legislature to redress the grievance of the taxpayers against the mistakes committed by the Assessing Officers. This may well fuel perverse motivation and will create creating conflict of interest ( as they will be rewarded by the enhancements made by them). Also it is fundamentally destructive of the appellate process and sanctity of the post, by indirectly converting CIT- Appeals into CIT- Assessment!,
    If this trend were to be encouraged , it will be better to as well do away with the farcical first appellate mechanism ( and omit Section 263) – .The first appeal will become a wasteful ritual, .The sole justification for its existence may well be to inject more uncertainty in the assessment process( with the consequent potential for unhealthy practices) and to provide a mandatory waiting slot for the officers so as to nurture their ambitions of walking their time bound career path

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