Initiatives Undertaken By The CBDT For Reducing Litigation With Taxpayers

The CBDT has issued a press release dated 15.01.2016 in which it is stated that reducing litigation with the taxpayers has been a key focus area for the Income Tax Department. It is pointed out that several initiatives have been taken by the Central Board of Direct Taxes in the last three months up to December 2015 to significantly reduce disputes and provide relief to taxpayers facing long standing litigation. A list of all those initiatives are set out in the press release.


Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 15th January, 2016

Subject: Initiatives for reducing litigation- regarding.

Reducing litigation with the taxpayers has been a key focus area for the Income Tax Department. Several initiatives have been taken by the Central Board of Direct Taxes in the last three months up to December 2015 to significantly reduce disputes and provide relief to taxpayers facing long standing litigation.

The significant steps taken by CBDT include issue of a Circular revising the monetary limits for filing of appeals by the Department with the objective of reducing litigation as a part of its initiatives to reduce grievances of the taxpayers. CBDT has also directed Principal Chief Commissioners to constitute a collegium of Chief Commissioners of Income Tax to consider withdrawal of appeals filed by the Department in cases involving tax effect above the revised monetary limit from the High Courts in cases where, no question of law is involved, the issue is considered settled by the Department, or the appeal is no longer relevant in view of subsequent amendment.

Besides this, the CBDT has issued a number of Circulars for withdrawing or not pressing of appeals on settled issues relating to the subjects listed below:

– Non applicability of Rule 9A of the Income-tax Rules 1962 in case of abandoned feature films.

– Measurement of the distance for the purpose of section 2(14)(iii)(b) of the Income-tax Act for the period prior to assessment year 2014-15.

– Interest from non-statutory liquidity ratio (non-SLR) securities.

– Allowability of employer’s contribution to funds for welfare of employees in terms of section 43(b) of the Income-tax Act.

– TDS under section 194Aof the Act on interest on fixed deposit made on the directions of the courts.

– Recording of satisfaction note under section 158BD/153C of the Income-tax Act.

– Non levy of penalty u/s 271(1) (c) wherein additions/disallowances were made under normal provisions of Income-tax Act 1961 but tax was levied under MAT provisions under section 115JB/115JC, for cases prior to A.Y. 2016-17.

The relevant Circulars are available on the website of the Department www.incometaxindia.gov.in .

(Shefali Shah)
Pr. Commissioner of Income Tax (OSD)
Official Spokesperson, CBDT


6 comments on “Initiatives Undertaken By The CBDT For Reducing Litigation With Taxpayers
  1. Ashwani Joshi says:

    CBDT has issued laudable tax payer friendly directions in the last 3-4 months. Now the need of the hour at number one of the list is to issue time period for disposal of grievances petition and for issue of total refunds.

  2. rambabu B.Com says:

    Arrangement should be made to know the status of a letter given in inward section. ? A letter was given in 2011 in ASK for change of TAN in a chalan -amount 20 lakhs. From 2011 no aXion has benn taken. Inspite of that they send reminders-notices and make calls from ghaziabad. This chalan amount with interest amounts to 37 lakhs now.

    U know !!! Simple. It does not involve any 1s brain time. But 5 years….♤♤♤♤♤••••》
    SO MUCH PUBLICITY WAS GIVEN WHILE INTRODUCING ask AND ALSO AFTER .
    Now we do not know ? Fate of letters submitted in ASK. Hence enabling SMS fality to know the fate will help a lot.

  3. rambabu B.Com says:

    Arrangement should be made to know the status of a letter given in inward section. ? A letter was given in 2011 in ASK for change of TAN in a chalan -amount 20 lakhs. From 2011 no aXion has benn taken. Inspite of that they send reminders-notices and make calls from ghaziabad. This chalan amount with interest amounts to 37 lakhs now.

    U know !!! Simple. It does not involve any 1s brain time. But 5 years….♤♤♤♤♤••••》

  4. Bobjee Kurien says:

    A grievance petition by itself needs to be paid attention to at the AO’s level . When it is not attended to assessees prefer to go up ward in the line of administration.The final option is to file a petition before the CBDT.As mentioned by Prasad it shows the pitiable state that the board is in now.In fact the petition was filed by the assessee in Sept2003 and I as an AO was asked to ensure that the petition is disposed of in 15 days . I was amazed at the ignorance of the CIT to direct me thus .I told him that to prepare a priliminary report it self will take a period of 3 months and to settle the grievance will take at least two years.By the time i left office one and a half years later 80 percent of the grievance was settled.The matter has not moved an inch from 2005 .The grievance petition filed before the board is still pending Parliamentary questions are falsely sent and board has no idea how to monitor the case .They are now aware that their inaction is going to land them in hot waters.There is an old adage time will heal many a wound . But i am sure that adage will not find takers in this case .13 years to settle a grievance is un thinkable .Board is merrily issuing direction to come investigation in scrutiny case in a matter of just four or five hearings . When child was brought to Gandhiji to help hs over come his habit of eating sugar Gandhiji asked the parent to come after a week . when he came a week later he said one more week.
    When the parent came with the child the next week Gandhiji talked to the child .When he was asked why it took him two weeks time to render his advice he said he was himself habituated to eat sugar . By the end of one week he could not succeed in breaking the habit . The end of the next week he was .

    The board may mend its ways of delaying decisions . That would go a long way in correct the deficiency in administration Our(Prasad and mine) file is lying with the board for the past 4 years and no action is taken. G O K why it should take 10 years to verify 20 files. They expect the scrutiny of cases in 150 cases to be done in one year

  5. Varaprasad Daitha says:

    The initiative actions taken by the present CBDT under able guidance of Revenue Secretary are apt and assessee friendly. But the CBDT has to bestow attention on the following issues also which are also connected with the other assessees and staff of the Incometax Department.

    1. There are long pending grievance petitions from various assessees and are not being attended. For instance the Nizam Jewelry Trust and its beneficiaries had filed a series of grievance petitions right from the year 2004 and they are still pending and no final actions were taken.

    2. There are also long pending disciplinary proceedings pending in spite of the fact that the Inquiry officers had submitted their reports long back.

  6. Varaprasad Daitha says:

    The efforts taken by the present CBDT personnel under able guidance by Revenue Secretary is a laudable one. It is also the need of the hour expectations from CBDT on following issues.
    1. Resolving long pending grievance petitions pending with CBDT and lower functionaries. For instance the Nizem Jewelry Trust and its beneficiaries had lodge a series grievance petitions before CBDT and above functionaries. The same have not yet been resolved.
    2. Similarly the CBDT has to dispose long pending disciplinary proceedings in spite of the fact the final reports were received by it and not disposing for the reasons best known to it.

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