ITAT Directive Regarding Disposal Of Dept Appeals With Low Tax Effect In Wake Of CBDT Circular

With a view to implement Circular No. 21/2015 dated 10th December 2015 issued by the CBDT (which states that even pending appeals of the department with a monetary tax effect of Rs. 10,00,000 or less should be withdrawn/ not pressed), Hon’ble Justice (Retd) Dev Darshan Sud, President of the ITAT, has issued a notice dated 14.12.2015 requesting all representatives to furnish a list of departmental appeals where the tax effect does not exceed the monetary limit of Rs. 10 lakhs and which are covered by the said Circular. It is stated that all possible efforts should be made to furnish such information containing requisite details, viz., appeal number, date of filing, name of the assessee etc. in the office of the Assistant Registrar (Judicial) as expeditiously as possible, preferably by 18th December, 2015.


INCOME TAX APPELLATE TRIBUNAL
NEW DELHI

Date : 14th December, 2015
NOTICE

All representatives are requested to furnish a list of departmental appeals where the tax effect does not exceed the monetary limit of Rs. 10 lakhs and are covered by Circular No. 21/2015 dated 10th December, 2015 issued by CBDT. All possible efforts be made to furnish such information containing requisite details, viz., appeal number, date of filing, name of the assessee etc. in the office of the Assistant Registrar (Judicial) as expeditiously as possible, preferably by 18th December, 2015.

The aforesaid is being solicited as a measure to implement the Circular No. 21/2015 dated 10th December, 2015 issued by CBDT.

Sd/-
[Justice (Retd) Dev Darshan Sud]
President


15 comments on “ITAT Directive Regarding Disposal Of Dept Appeals With Low Tax Effect In Wake Of CBDT Circular
  1. Varaprasad Daitha says:

    Now that the CBDT is concentrating on high pitched assessments, reducing litigation etc., a new side growth of circumventing the directions by some scrupulous bureaucrats, officers and authorities a control mechanism should be implemented like fixing accountability after scrutinising the process of all failed grounds of appeals by the department before the ITAT like that those AOs who suggest appeals before ITAT, those range heads who support the suggestions, those Principal Commissioners who authorise the filing of appeals before ITAT. So far there is no mechanism to check the failures on the part of those authorities cited above and Departmental Representatives before ITAT. As pointed out by Mr. Bobjee Kurien the CAs and Advocates are suffering the failure stigma, losing further cases etc.

  2. Bobjee Kurien says:

    With the issue of these new directions there is an element to fix the responsibility for high pitched assts.As things stand the JCIT along with the DCIT\ACIT\ITO become responsible for the assessement . In case the ast. is done following the directions of the JCIT \Addl.JCIT they become responsible for the high pitched asst.Like wise filing of the appeal before the ITAT the responsibility squarely lies on the Pr.CIT and CIT(Jdl).Hither to it was transferred to the lowest officer in the rung.Like a CA or Adv takes up the responsibility for the result of the appeal filed before the authorities in the department it is now fixed.Now we can expect a thinking process will go into the filing of an appeal .earlier the note put up by the lower ministerial staff would form the basis,and now it is not at any ones whims and fancies, A senior level officer is made answerable.
    .

  3. CA Manoj Jain says:

    Its a assessee friendly drive by CBDT particulary crdeit goes to dynamic revene secretary who is very concern about the problems faced by assesee due to harrasing attitude of departmental officer. Now it has also to be check that department should not file appeals by raising frivuouls legal grounds of appeal. There are instances where daily appeals are recommended by pr. CIT/ CCITs on friviouls grounds.

    • Varaprasad Daitha says:

      Yes Mr. Mannoj. The Revenue Secretary is working silently from behind and exhibits his modesty even offering sorry for the misdeeds done by the then Chairperson, CBDT. It has to be clearly attributable to Revenue Secretary who is transforming the PM Modi’s ideas into actions. I pray GOD to thrive such people in the Government for people.

  4. ca r.k.aGARWAL says:

    CBDT has taken the taxpayer’s freindly step in increasing the monetary limit for filing of appeals before the ITAT, High Court and Supreme Court and the same is even applicable in the appeals pending as on today before the courts. It will reduce the burden of the courts and concentrate on the high demand cases. The assessee aty large will be benefited for the reduced litigation.

  5. CA PRAKASH D.SHAH says:

    Really, it is very good Circular of the Hon’ble Board, whereby litigation is reduced.On 15/12/2015,the Honble ITAT,Ahmedabad has listed about 250 cases for disposal, on the basis of the Circular issued by the Honble Board.

  6. VASANT KULKARNI says:

    MOST WELCOME DECISION.BOLT STEP TO CLEAR BACKLOG.PLEASE EXPEDITE IT.

  7. Nem Singh says:

    Decision of Hon’ble President is most welcome-able and appreciable in the interest of Assessee who are facing unnecessary burden of the department.

  8. Varaprasad Daitha says:

    I hope the only wing of Direct Taxes implementation agency i.e. ITAT is fast in acting in transforming the directives of the Tax administration. But the CBDT which is the rule making body under Direct Taxes, is not gearing up to its own circulars / instructions. We can cite many and let us do it.

    To begin with Hon’ble Surpeme Court had directed the CBDT quashing the disciplinary proceedings which were not initiated as per procedure envisaged by the Solicitor General before Supreme Court as long back as 2013. But the CBDT found a new way out of re-issuing charge sheets which were not initiated as in the cases covered in the above orders.

    It sounds double standards for CBDT.

    Like this there are many violations of its (CBDT) own circulars / instructions.

    • Bobjee Kurien says:

      As of now there is a bitter battle for supremacy between the executive judiciary and the services .In USA it is the judiciary which is supreme .In UK it is the executive and else where the services .In India no one can claim to be superior to the other wings . I think there should be a harmonious working of all the three wings for India to be a country that will be looked up to . In their petty acts the credibility of Governance is taking a very big hit.I only hope that civility dawns on them and better governance prevails.

    • Bobjee Kurien says:

      CBDT needs to reinvent itself .All these years especially after 1988 the blue eyed boys feel that they are law unto themselves.They some how or the other felt that one day they will be occupying position of power could disobey the written directions of the board and the CCITs. In addition being in a revenue department they could play hand in glove with the ministers in power. The new incumbent appears to be bold ( with the backing of the F M )The IT ACT is a very good piece of legislation like the holy books.But human interpretations make it appear not to be The social objectives of the government is possible by this legislation .It needs a pragmatic approach is necessary for achieving its objectives.Severe penal provisions act negatively .Lets hope the CBDT rises up from the unfathomed depths it has gone to and issue directions for better compliance by the indian citizens.

      • Varaprasad Daitha says:

        Yes the Incometax Act 1961 is a good piece of legislation made in India with prime objects of revenue collection with social security and social welfare programs embedded in it in the form incentives, tax relief etc. At the time the executive was also making certain fool proof actions like identifying the books of account maintained by each account maintaining entity and affixing marks of identification on them with about one month the closure of the financial years. No doubt there might be certain corrupt practices but by and large the department could qualify the maintenance, closing of books of account by the end of the financial year. Each Inspector of Incometax was to report in his fortnightly reports about this angle also.

        But the so called blue eyed short sighted boys discarded this practice with high raising voices of corrupt practices. They could have checked the corrupt practices. Now it has become a practice for some to prepare and file audit reports (I repeat that not all but some) without even looking into the books of accounts. Why I am making this point is that one survey team had conducted one survey on 31st October of an year where the assessee’s AR uploaded the audit report and income tax return on 29th October and qualified as that he had seen the books of account listed. During survey the assessee confirmed that he did not maintain any books of account or any record for his activities. The AO had issued a show cause notice to the auditor to show why action should not be taken against him for reporting incorrect facts of seeking the books of account listed.

        What happened later is not important. But it is to be seen that when a procedure is discontinued it should be thought deeply the implications of positive as well as negative resurrections.

        In Central Government many procedures and practices were in vogue for decades.

  9. Adv. I.S.Verma says:

    All concerned should co-operate.

  10. bobjee kurien says:

    A very subtle move by the President to ensure that the department does not drag its feet on a direction that has been issued by the Board.That’s how a proactive administrator acts . Thank you Mr President for making this move

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