Shri. Atulesh Jindal, the Chairperson of the CBDT, has addressed a letter dated 05.02.2016 to the Principal Chief Commissioners of Income-tax in which he has stated that the growth in collection of direct tax collections is not encouraging. He has pointed out that main cause for concern is that regular tax collection has shown a decline of 10.44% as compared to a growth of 17.25% last year. He has stated that this suggests inter alia that adequate efforts are not being made to collect the arrear demand. The CBDT Chief has directed that “outmost focus for the next two months should be on collection of the collectible demand, both out if current and arrear demand”. The Chairperson has also directed the Principal Commissioners to give the highest priority to the work of collection of demand and to monitor it personally.
Now that the CBDT had increased the threshold limit for filing appeals before ITAT on the decisions of the CIT (A) orders, in large number of cases the assessments made will reach finality soon after the passing of orders by CIT (A) the CITs (A) should be oriented to dispose more appeals before them.
If appellate orders framed within reasonable time, assessee may opt for payment of disputed demand instead of asking for stay of demand.
At present the situation is very strange where chances that the appeal will be decided earlier are higher if assessee did not paid the due tax as the administrative wing regularly writing to the CIT(A) to dispose off the pending appeal at the earliest possible where there are substantial outstanding demands (not the demand raised due to assessment).
In such circumstances the assessee has no option but to withheld the tax at the longest possible time despite the fact that approaching before different authorities (including High Courts) for obtaining stay is require additional resources (Human Resources (Time) as well as Money) without any productive outcome.
Further if the appeals filed before CIT(A) got decided within reasonable time (as laid under provisions of Income Tax Act), assessee will prefer to pay demand instead to approaching for stay of demand.
Hope that authorities will consider the situation and some meaningful action will be seen on platform, so that majority of appeal got decided within timelimit provided u/s 250 (One year from the end of financial year in which appeal filed).
CA Goutam Baid
Jodhpur