Pursuant to the solemn promise made by Prime Minister Narendra Modi that a mechanism would be set up to ensure that Assessing Officers are accountable for the unreasonable additions that they make in the assessment order, the CBDT has issued Instruction No. 17/2015 dated 09.11.2015 in which it has admitted that the tendency of the AOs to frame high-pitched and unreasonable assessment orders reflects harassment of taxpayers and leads to generation of unproductive work for the Department.
The CBDT has consequently set up a committee of high-ranking officials which will examine whether there is a prima-facie case of high-pitched assessment, non-observance of principles of natural justice, non-application of mind , gross negligence or lack of involvement of assessing officer. The Committee would ascertain whether the addition made in assessment order are not backed by any sound reason or logic, the provisions of law have grossly been misinterpreted or obvious and well established facts on records have out rightly been ignored. The Committee would also take into consideration whether the principles of natural justice have been followed by the assessing officer. If it is established that unreasonable and high-pitched additions have been made by the assessing officer, a report would be sent to the Pr. CCIT by the Local Committee who will then take suitable administrative action against the Assessing Officer. Further, the departmental position as determined by the Local Committee in such cases would be appropriately presented before the Appellate Authorities so that litigation is curtailed.
Instruction No. 17/2015
F. No.225/290/2015-ITA-II
Government of India
Ministry of Finance
Department of Revenue (CBDT)North Block, New-Delhi dated the 9th November, 2015
To,
All Pr. CCsIT/DsGIT/CCIT(Exemptions)/Pr. CCIT(International-tax)
Subject: Constitution of Local Committees to deal with Taxpayers Grievances from High Pitched Scrutiny Assessment- reg.-
Sir/Madam,
Board has consistently been advising the field authorities to be fair, objective and rational while framing scrutiny assessment orders. Role of supervisory authorities in this regard, has also been highlighted by the Board from time to time. It has, however, been brought to the notice of Board that the tendency to frame high-pitched and unreasonable 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 Department.
2. In view of the above, a need has been felt to lay down an institutional mechanism to quickly resolve the taxpayers’ grievances arising on account of high-pitched and unreasonable additions made by the Assessing Officers. CBDT has decided that following measures may be taken in the field formation for handling taxpayers’ grievances arising from high-pitched scrutiny assessment orders-
(i) Local Committees to deal with Taxpayers Grievances from high-pitched scrutiny assessment (‘Local Committee’) are required to be constituted in each Pr. CCIT region across the country. Ideally, the Local Committee may consist of three members of Pr. CIT/CIT rank. The members can be selected from the pool of officers posted as Pr . CsIT, CIT (Judicial) and CsIT (DR), ITAT at the station where the Headquarters of the respective Pr. CCIT is located . The Add!. CIT (Headquarters), to such Pr. CCIT would act as a Member- Secretary to the Local Committee. The senior most Member would be designated as the Chairman of the Committee.
(ii) The Local Committees so constituted would deal with the grievance petitions related to high-pitched scrutiny assessments completed within the Jurisdiction of the respective Pr. CCIT These Committees would also handle the grievances pertaining to Central Charges located under the territorial jurisdiction of the Pr. CCIT concerned.
(iii) Similar committees would also be setup in the charges of Pr. CCIT (Inti. Tax.) and CCIT (Exemptions). In these committees, the Officers working as CsIT (International Taxation/ Transfer Pricing) and CsIT (Exemptions) respectively could be selected as Members. The Addl. CIT (Headquarters) to Pr. CCIT (Intl Tax.)/CCIT (Exemptions) would act as a Member- Secretary to these Local Committees.
(iv) The Committees may co-opt other members, if necessary.
(v) A grievance petition received by the Local Committee would be immediately acknowledged and separate record would be maintained for dealing with such petitions.
(vi) It shall be the endeavor of the Local Committee to dispose of each grievance petition within two months from the end of the month in which such Grievance Petition is received by it.
(vii) The grievance petition received by the Local Committee would be examined by it to ascertain whether there is a prima-facie case of high-pitched assessment, non-observance of principles of natural justice, non-application of mind , gross negligence or lack of involvement of assessing officer. The Committee would ascertain whether the addition made in assessment order are not backed by any sound reason or logic, the provisions of law have grossly been misinterpreted or obvious and well established facts on records have out rightly been ignored. The Committee would also take into consideration whether the principles of natural justice have been followed by the assessing officer.
(viii) If it is established that unreasonable and high-pitched additions have been made by the assessing officer, a report would be sent to the Pr. CCIT/Pr. CCIT (Intl Tax.)/CCIT (Exemptions) , as the case may be, by the Local Committee. The Pr. CCIT/CCIT, after considering the views of the committee, would take suitable administrative action, wherever required. Further, departmental position as determined by the Local Committee in such cases would be appropriately presented before the Appellate Authorities so that litigation is curtailed.
(ix) It is, however, clarified that the purpose of constitution of Local Committee is to effectively and efficiently deal with the genuine grievances of taxpayers and help in supporting an environment where assessment orders are passed in a fair and reasonable manner. The Local Committee, in no way, can be considered to be an alternative /additional appellate channel.
3. The Board has emphasized that the task of constitution of Local Committees be finalized in this month itself and a report on compliance may be sent by the Pr. CCsIT/Pr. CCIT (Intl.Tax.)/ CCIT(Exemptions) to their respective Zonal Members with a copy to Member (IT), CBDT. It has also been desired that the outcome of Local Committee’s work may be highlighted in each monthly DOs required to be sent to the Zonal Members.
(Ankita Pandey)
DCIT(OSD) ITA-II
I have to say that if every AO is careful about procedure and process there after if they use sections some useful work they can turn out else all AOs is indeed a wastage on taxpayers money as their salaries and wages is a worst drain of the exchequer.
What is the use of a person if he is most inefficient or ineffective.
i saw in several cases, the AO does not understand very sec 141,142 and 143 reasonably correctly.
understanding means he shd read several times the very section might be depending upon his ability of decoding the section; if he does it it might be possible he would not fall into serious elephant traps.
but today so called education they possess they are egotistic as if they are the very end of knowledge.
Already now education is not any way great is a great fact, which is mostly rote kind knowledge.
that rote education is okay up to middle grade education i.e., middle school after that application knowledge base is the basis of learning process; if that happens he can easily analyze why he is applying that particular section, whether that application is alright that could be assessed by him if he really underwent the procedure and process correctly, that work would help him reduce his errors.
If not his efforts are just wastage of time and money of ever so many people, right from his own parents, and teachers, ,…..
A stitch in time indeed could save nine.
Every government official works under th premise that they are there in the seat to inflict pain.It is just following the past history.When will therealisation seen on them that India is an independent nation and on the mlies
On them lies the onus of contributing their mite on building the nation.The IT act like the constitution is a wonderful peice of legislation where in The founding fathers out in a lot of thought based on the need prevailing then.The infant cannot survive on milk alone.As it grows it requires inputs.or else it remains an infant.The highly paid administrators are the drivers of this movement.If they fail in guiding the nation to yhe objectives they have failed and don’t deserve to be in that position.pleasecacate the seat before you are thrown out
What Mr. Bobjee stated is correct. A single member bench of a High Court had set aside the two member bench judgment. Yet the Supreme Court did not object to this kind of approach till date i.e. after about 9 years. The top judicial man now sermons that adjournments should not be granted freely.
Will this be effective? How are AOs are now made accountable? No measures strictly specified.
It is that only CBDT has to act on our ‘pheku’ PM words.
Be ready to face hsarrasment from one more committee. Please remember, CAG audit, 263 and 147 all are till now misused.All want AOs to act in violations to law.
Further, there are many oral instructions given by this CIT’s to AOs. How can they fair in the committee?
We know that taxpayers are at times being harassed by A.O’s. However this is a good initiative taken by the Board.We should have some faith in it and report our concerns to such committee and see whether it is effective.
Pranav bagdai can you still be hopeful to keep faith on CBDT even after the thread discussion? I hope you have not understood the root cause of all discussion. The attitude of the people in the CBDT is the main reason. The intention of all participants in this discussion was only to precipitate this angle. We tax paying public are tolerant of the attitude of the CBDT men all these days.
I send my grievances to committee and after seeing my case report has been send to pccit who directed concern cit for early disposal of case and cit appeal has decided my case by passing stricture “AO has committed a grave error of judgement”. Even department filed appeal with itat which also upheld the order of cit appeal.
I am very greatful to our beloved prime minister Shri Narendra Modi.
One Commissioner of income tax openly threatend the assessee stating that he will not getthe refund for 10 years unless he parts with a part of it.the assessee was so certain that there was no way that the commissioner could withhold the refund.Alas he was wrong.This was a case where a division bench judgment was set aside by a single member judge.This was challenged by the assessed before the Supreme court.In my entire service I did not see a single member judge setting a side a division bench judgement.The supreme court stayed the single bench judgement .It has yet to hear the case.So effectively the assessee had to file a petn.in the supreme court which has yet to hear the case.ten years have passed.This is how highly paid bureaucrats play games with the assessee.This assessee is entitledto a huge refund 75 crores.Let’s are how the board acts .in compliance to the PM s promise.This is intellectual dishonesty in administraton which has to be nipped in the bud .
Right Kurien. that is judicial discretion. if you exceed face music is the essence.
seems something wrong somewhere in dispensations. problem is what one does the other does not seem to know.
Any way please do not misuse tax payers exchequer monies is the limitation on the government in place today.
Courts need to function, as most of the departments do not know what to do.
So it is a clear case a lot of funds are getting wasted in the internal wrangles.
ultimate sufferer is any honest tax payer if he is caught in the cross fire.
tax payers your future seems very bleak it appears.
The institution of Incometax Ombudsman which had been designed to voice the assessing officers’ atrocities. I do not know why the assessees and tax practitioners are not using this channel. Might be due to the facts that (1) for fear of revenge by the departmental personnel; (2) the post of Ombudsman is manned by the retired departmental Commissioners and above rank; (3) The inefficiency in this institution; (4) red tap ism in this set up; (5) zero result derived from the entire exercise ; (6) for lack of knowledge about the institution not much publicised by the CBDT.
Ombudsman idea is always playing second fiddle to the department, i do not see any worth while purpose is served by that Ombudsman. it is some retired man’s paradise sir.
No ombudsman in any department is useful and their remuneration is a leak on tax payers moneys only.
I have seen hoe insurance and bank ombudsman function..do not waste tax payers moneys is my view.
There Should be one portal, where each tax payar can reach with
committee during harassment not after harassment ,
Thanks
The CBI is there the CCIT is there CBDT to name a few forums which the assessee can go to . When these forums become a beehive of corruption there is bound to be a an explosion .Remember the French revolution .The guillotine.I hope things do not go to that extent in India.But the day is not too far. People have had enough .
The immediate action by the CBDT in instituting the committee to punish AOs for harassing the assesse is nothing but an attempt to save its own skin and to find a scape Goat in AOs.
Mr. I S Verma had raised very useful and meaningful points. A committee constituted by a Pr. Chief Commissioner with his colleagues can it sit on judgment on the quasi judicial powers of assessing officer, CIT (A) and regular CIT who is entrusted with statutory work for disposals. Hence the issue of Instructions by the CBDT without consulting PM / FM about the modalities the action could be termed as a maska to PM.
This is type of action we can expect from officials who have neither field experience nor knowledge of office procedure and law. Because of these short comings they will do any thing to please any one .The formation of the committees infringes the judicial powers of the assessing officer .That is why we have a hierarchy in the department to ensure the errors or shortcomings of the quasi judicial officers are set right .Each higher official has well defined areas of operations. IN the recent judgment of the high court it was clearly spelt out . In a action u/s263 or 25(2) by the Commissioner he cannot instruct the officer how to do an assessment.It would be bad in law .So how can a committee be set up to monitor the action of the assessing officer . Why are the supervisory officers there drawing huge salaries and perquisites and given powers which is not available to the assessing officer.The present action of the board puts them in poor light.The present situation has arisen on account of the fact of administrative inaction and nothing else The board needs to pull up the CCIT the CCIT the CIT the cit the adll CIT for not taking corrective administrative action .Formation of committees is a poor selection of options .If only the directions issued are followed meticulously such things would not come to pass.
I appreciate the line of action followed by Mr Modi. Bureaucrats do your job. Politicians will do their job. Though the present Governor of the RBI and the Minister are not on the same page the Minister has allowed space to the Governor to do his part and the results are there for all to see. We have turned the corner .
Well said Mr. Bobjee Kurien. On the other day I addressed a mail to the chairperson to know about the fate of a pending action at her level for the last 11 months and she is said to be retiring on 30th November 2015. A system generated reply has come to me stating that only IT and WT matters would be attended. Is it the way she is expected to function. After all she will be in the service for the rest of the month. Can she restrict herself only to her specified works only? If an officer who is going as she would be and state that he would do only the specified work, would she not take against him or she will remain calm since it was within her specified arena? That is the freedom the top bureaucrats are dictating and deriving.
Committe-another committee-another stage of litigation-
Firsly,How a committee can sit over the quasi-judicial order of an Assessing Officer? Against the provisions of law- Post of CIT(A and provisions of various sections such as: section 144A,section 144BA, section 144C, section 263 & section 264 etc will get rendered redundant. What so called ‘administrative action’ will be taken-not specified. When an Assessing Officer can challenge the routine transfer order, any administrative action will open the flood gate of litigation not only for the Officers ,but, for the Tax-payer committing mistake of approaching such committee. An Officer, if taken to task on the basis of report of such Committee, can approach the Court on vary this ground. If the Hon’ble CBDT is in fact serious to avoid uncalled for/unwarranted high pitched assessments, Educate the Assessing Officers, Provide sufficient Library & staff on regular basis and start having trust in them. When Two tire internal, one A.G. audit and supervision by Higher Authorities (sec 263 etc) have not been able to curb this Malice, how such Committees will be able to do. What about to compensate the Tax Payers?
Tare ever so many ways of setting right an action.I remember a Joint Commissioner (an upright man ).very soft spoken but firm. His style of working was very unique. he would call an assessing officer if he noted some thing in him . If he has done some thing good he would call you and express his happiness if not would gently guide you .If his guidance was not acted upon he would write out his instruction and convey it to him He would do this twice more . If you did not do as per his written directions he would send you a gentle memo in writing saying that his repeated oral as well as written directions are not being taken seriously and if continued he may have to record the same in the personal folder maintained by him and would find the place in his annual appraisal report No shouting no show of position of power just gentle persuasion It worked wonders .The performance of the range was fantastic . How many officers can follow .He occupies a very senior position in a media respected for its reporting Even today he is a respected personality. He voluntarily sought retirement. His loss to the department was a gain for an organisation. Ijust wish the department had more such officers.
That is how I remember in 1960s we were telling our officers to have a restraint like judicial restraint on oneself, if not you would land into tears yourself.
That way as a district welfare officer then as dy collector in state services i even told my officers or other staff, one need to be very very careful when you have discretionary powers, after all ‘discretionary powers’ mean you shall have to be highly discreet in taking any decisions ; believing the public servants certain levels of officers or officials only were bestowed the discretionary powers besides red tape meaning one has to take higher levels approvals , say about two levels most minimum,that way red tape came into existence during British Raj that was followed by us after independence.
I had seen once S .K. Chettur ICS officer as secretary to Board of Revenue in Madras state was patiently instructing his officers as to how the public officers need to behave with public, after all without public trust public servant is Nothing he told them.
He also told when they were in ICS training too they were told , without public approval which is easy provided you are very considerate with them – public -as the public only need to support any public officer not administering authority, he told his officers, very religiously every week end.
He also told them, he as also his fellow trainees were told Administering authority would always harsh on you as an officer, if your performance since if it does not meaningfully follow ‘judicial restraint’.
He said that way he used to advice indian ministers during British Raj, administration itself shall have ‘judicial restraint’ on itself; and so he told one revenue minister, Sir, when rains fail how the farmer after losing his crops would pay the tax of the government, if forced either he resists politely then revolts, if revolting or resisting , one could see Natural justice’ is on his side; and such kind of administering is called ‘Administration’ by Public authority, if not it is not called public authority, but ‘administration atrocity’;
then he said why in 1857 there was an infantry revolt, as the commanding officers failed in their ‘judicial discretion’; if there was ‘judicial discretion’ naturally there would not have been Mahatma Gandhi to fight for independence, after all, the public would have been very happy with British governance.
Therefore, he said, independence and freedom is born out of ‘judicial discretion’ called, ‘judicial restraint ‘ on one’s own self, one need to impose by himself.
Sama, beda, dandam – peaceful approach, if failed, some meaningful force and absolute force that is a double edged weapon system he said.
He said, why policeman’s prosecution if wrong very department would not support him, whatever level officer he is, that way police man was strictly controlled by administrator himself. He said if the police loses a prosecution the relevant officer was either demoted or discharged without benefits of service, called ‘dismissal’.
Through the British authorities had serious controlling system called, ‘checks and balances’, they were able to administer 3/4th of the world, but due to officers who suffered from ‘headstrong’ behavior of ‘power’ caused the fall of the fall of British authority, that only made the colonies to fight for independence by freedom movements all over the world, he told his officers.
Again he warned his officers, never be over bearing with public just because some authority would support you; if you do, and if there is too much authoritarianism, naturally your hard won freedom would just dissipate after all your own public would disown you..so he told in the talks..’you need to maintain , ‘judicial self restraint’ he ended .
He told the officers and officials, power itself is like high power electric shock, if you touch high power cable though that cable you might own but it would care you but would kill you..thus in those days he warned what is called ‘power’ and how to contain is ‘self restraint’, better a ‘judicial restraint’ you impose on yourself. that is all, from the administrative history.
Same Chief Justice Roger Taney of U S Supreme court said ‘judicial restraint’ is a must on the courts too…there are things that need to be settled by political wisdom, then do not use judicial power, if done you would end up with Dred Scott v Sandford,1857.
He could learn judicial restraint after his very bad decision in that case.He lost his stature to be as good as C J John Marshall, every one of you if you are student of constitutional history of the world. that is all.
Typographical error .
instead of ‘tare’ read There are
Another waste of our hard earned money, the committee will never give his report and if they do it will not be acted upon. They will do nothing just waste our money like other government distribution channel.
If past experieneces are a guiding light oi agree with Robot Agarwal.Board issues diections on tissue paper which are used like wise!
In post search assessments,there is tendency to assess the income based on appraisal report prepared by the Investigation wing. The concealed income estimated by Investigation wing is the minimum assessed income, in spite of the approval from JCIT. In fact the post search assessment is framed at the dictate of DG/DI/JDIT. Why not these erring officer to be punished. Why such appraisal is to be prepared? Why they estimate conceal income? Why they dont suggest the investigation to be carried out? If such appraisal is not stopped or such officers are not warned, the high pitch assessment can not be stopped. The CBDT should direct the committees to obtained the details of assessed income, in case of post search assessment in last two-three years and examine its fate in appeal. There are number of cases where in first appeal heavy additions are deleted. Is it not a case of high pitch assessment? Why action for future? Why not for past also? Such details can be called from the assessee’s through the Tax practitioners or through Bar Association. CBDT always absolve himself by issuing instruction/ circulars? Whether any officer do care about such circulars. There is no fear? Many at times CBDT has issued circulars to warn officers for instance in case of disclosure during search, in case of filing frevilous appeals before ITAT, in case of poor represantation before ITAT, in case of filing belated appeals in high court and Supreme Court but there is no instance of taking any action against the erring officers. CBDT has to evolve such a system that every grievance is attended within framed time and its day to day progress can be visited by the complainant in E system.There is lot to discuss and suggest about the improvement in working of the department.
CBDT IS A TOOTHLESS ORGANISATION WHERE PEOPLE ARE BROUGHT IN TO SPEND THE LAST DAYS IN PEACEFULLY AND GET KUSHI POSTINGS.THEY ARE IN THEIR SEATS FORJUST .A FEW MONTHS.WHY SHOULD THEY TOIL.THE PRESENT CHAIR PERSON HAS DONE SOME THING THAT OTHERS COULD EVER STEAM OF.SHE MADE THE REVENUE SECRETARY APOLOGISE FOR HER INACTION!!!
There is a typographical mistake.
Read ‘dream’ instead of ‘steam ‘
instead of ‘peacfully’ read ‘peace’
Another channel to take bribes Then do you need an ombudsman why pay a huge salary to them after retirement
bobjee you are right.
As there are advisory committees comprising outside department drawn from different fields why not these local committees be drawn from the eminent Lawyers, CAs, Tax Practitioners, Corporate etc?
Ho Ho another committee to exert pressure on the sub-ordinates. The CBDT has to set itself as an example in the matters of observance of principles of natural justice, application of mind , gross negligence or lack of involvement etc. Without these the creation of local committees will be another hoax.
But only this will not attract the voters you have to increase the interest rate on FDRs, u see at the time of UPA Govt, the interest rate was 9%, now promissing Acha Din, you have decreased it to 7.75%, these type of causes are not seen by your party leader as a result of which you have lost in Bihar Poll
There can be no better gift for tax-payers this Deewali than this positive step. The step of clipping of wings of high-flier corrupt third class officers should have been taken much earlier. It would have been better if , in this very circular,
sentence is also proposed for erring officers.