The CBDT has issued an Office Memorandum dated 29.01.2016 to deal with the issue as to whether a refund due to the assessee can be adjusted against a demand due from him u/s 245 of the Act. The CBDT has inter alia stated that in cases where the tax payer has contested the demand, CPC would issue a reminder to the jurisdictional Assessing Officers about the contention of the taxpayer, asking them to either confirm, or make appropriate changes, to the demand, within thirty days. In case no response is received from the jurisdictional Assessing Officer, within the stipulated period of thirty days, CPC would issue the refund without any adjustment. The responsibility of non-adjustment of refund against outstanding arrears, if any, would lie with the Assessing Officer

Shri. Atulesh Jindal, the Chairman of the CBDT has addressed a strongly worded letter dated 05.02.2016 to the Chief Commissioners and Directors Generals of Income-tax in which he has pulled up the department for unsatisfactory disposal of taxpayers’ grievances.

The CBDT Chief expressed dismay that repeated instructions from the CBDT had fallen on deaf ears. He stated that out of the total grievances of 7,863, 1696 grievances are pending for more than 6 months and 81 grievances are pending for more than a year. The learned Chairman reminded the department of the Citizens’ Charter which requires that all grievances should be disposed off within a period of two months.

The CBDT Chairman has directed the Chief Commissioners and Directors Generals to look into the matter personally and ensure that the grievances are disposed off on a priority basis. The Chairman has also directed that a ATR should be submitted to him in respect of grievances pending for more than six months

The CBDT has vide Orders Nos. 12 and 13 of 2016 dated 03.02.2016 ordered the transfers and postings of several officers in the grade of Commissioner and Director of Income-tax with immediate effect and until further orders

The CBDT has issued Notification No. 2 of 2016 dated 03.02.3016 in which the procedure, Formats and Standards for ensuring secured transmission of electronic communication have been specified in detail

The CBDT has vide Orders Nos. 9 and 10 of 2016 dated 29.01.2016 ordered the postings of officers in the grade of Pr. CCIT/ CCIT. Vide Order No. 7 of 2016 dated 21.01.2016, the CBDT has stated that the President is pleased to grant Proforma Promotion to Additional Commissioners of Income Tax to the grade of Commissioner of Income-tax in the pay band Band-4 – Rs. 37,400 – 67,000 + Grade Pay of Rs. 10,000.

The CBDT has issued a press release dated 28.01.2016 stating that one of the significant steps taken by Central Board of Direct Taxes to boost investment sentiments among MNCs is the landmark Framework Agreement signed with the Revenue Authorities of USA in January, 2015. This agreement was finalised under the Mutual Agreement Procedure (MAP) provision contained in the India-USA Double Taxation Avoidance Convention (DTAC). The agreement seeks to resolve about 200 past transfer pricing disputes between the two countries in the Information Technology (Software Development) Services [ITS] and Information Technology enabled Services [ITeS] segments. More than 100 cases have already been resolved and some more are expected to be resolved before the end of this fiscal. It is stated that the MAP programmes with other countries like Japan and UK are also progressing well with regular meetings and resolution of past disputes. The CBDT is confident that a combination of a robust APA programme and a streamlined MAP programme would be helpful in creating an environment of tax certainty and encourage MNCs to do business in India

The ten member Committee which was constituted on 27th October, 2015 under the Chairmanship of Justice R.V Easwar (retd.) former Judge, Delhi High court has given its draft report of recommendations for “simplification of the Income-tax Act” and “promoting ease of doing business”. The report contains 27 suggestions for amendments to the Income-tax Act and 8 recommendations for reform through administrative instructions

The CBDT has vide Order No. 5 of 2016 dated 20.01.2016 promoted several officers in the grade of Principal Commissioner of Income-tax (HAG, Pay Scale Rs. 67,000-79,000) to the post of Chief Commissioner of Income-tax (HAG+) in the pay scale of Rs. 75,500-80,000 for the panel year 2015-16 with effect from the date of assumption of charge of the post and until further orders. The promotions are on ad hoc basis

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

The CBDT has issued an Office Memorandum dated 14.01.2016 stating that in order to provide relief to the small taxpayers, refunds up to Rs.5,000 and refunds in cases where arrear demand is up to Rs.5,000 may be issued without any adjustment of outstanding arrears under section 245 of the Act during FY 2015-16. It is stated that as on 09.01.2016, there are 64,938 cases of refunds below Rs.5,000 involving Rs.1,148.14 Crore in non-CASS cases for AYs 2013-14 and 2014-15 pending in AST. The CBDT has directed the Assessing Officers to issue these refunds without any adjustment of arrears under Section 245. Similarly, the non-CASS cases for those assessment years where the refund amount is more than Rs.5,000 but the outstanding arrear is Rs. 6,000/- or less have been directed to be processed for issue of refund without any adjustment under Section 245. It is further directed that the above exercise should be completed before 31st January, 2016 and a compliance report be sent to the Member (Revenue).