Further to the press release dated 11th July 2018 of the Ministry of Finance, the CBDT has issued Circular No 3/2018 dated 11th July 2018 by which the precise scope of the move to withdraw low tax effect appeals has been explained. In particular, the CBDT has explained the meaning of the term “tax effect”. It has also been considered whether the decision to withdraw appeals which are below the specified limits should be given prospective or retrospective effect. The exceptions to when appeals can be contested even when they are below the prescribed limits are also clearly specified

The Ministry of Finance has announced a substantial enhancement in the limits for filing departmental appeals before the ITAT, Tribunal and Supreme Court. The impact of the new limits is that out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48% of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 41%.

The CBDT has issued Office Order No. 104 of 2018 dated 6th July 2018 to state that the promotion of several officers in the grade of Commissioner of Income-tax (CIT) (level 14 in the pay matrix of Rs. 1,44,200 – 2,18,200) has been regularized with effect from the date of assumption of charge of the post by them. A similar Order No. 103 of 2018 dated 6th July 2018 has been issued with respect to Chief Commissioners of Income-tax (CCIT)

Hon’ble Sushil Chandra, the Chairman of the CBDT, has written an irate letter dated 4th July 2018 to the Principal Commissioners in which he has stated that the ‘High Pitched Scrutiny Assessments Committee’ which was set up amidst much pomp and show, has been a non-starter. The learned Chairman has directed the PCsITs to get their act in order and ensure that the Committee does its work as intended.

The learned Chairman has also directed that AOs who are found guilty of making high-pitched additions on frivolous grounds, non-observance of principles of natural justice, non-application of mind, gross negligence etc should be transferred without any delay and subjected to disciplinary action

The CBDT has vide Office Order No. 102 of 2018 dated 3rd July 2018 ordered the transfer and posting of several officers in the grade of Joint Commissioners of Income-tax with immediate effect and until further orders

Hon’ble Sushil Chandra, the Chairman of the CBDT, has issued a directive dated 13th June 2018 to the Principal Commissioners of Income-tax in which the shocking revelation is made that several vigilance complaints against income-tax officials are pending for several years and no action thereon has been taken. It is also stated that there are virtually no cases in which disciplinary proceedings on account of misconduct have been initiated by the department on its own. This indicates that actions which should have been taken by the department on complaints against Group ‘B’ and Group ‘C’ officers/ officials are not being taken proactively

The CBDT has issued a draft notification dated 19th June 2018 by which it proposes to amend Rule 10CB of the Income-tax Rules, 1962 in respect of computation of interest income pursuant to secondary adjustment made under section 92CE of Income-tax Act, 1961. The CBDT has invited comments and suggestions from all taxpayers and tax professionals