{"id":13742,"date":"2019-08-10T13:15:21","date_gmt":"2019-08-10T07:45:21","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=13742"},"modified":"2019-08-10T13:21:40","modified_gmt":"2019-08-10T07:51:40","slug":"cbdt-accepts-that-grant-of-incentives-to-csita-for-passing-quality-orders-is-improper","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/cbdt-accepts-that-grant-of-incentives-to-csita-for-passing-quality-orders-is-improper\/","title":{"rendered":"CBDT Accepts That Grant Of &#8220;Incentives&#8221; To CsIT(A) For Passing &#8220;Quality Orders&#8221; Is Improper"},"content":{"rendered":"<p>The CBDT has issued Office Memorandum dated 9th May 2019 in which it has fairly decided to accept the verdict of the Bombay High Court in <a href=\"https:\/\/itatonline.org\/archives\/the-chamber-of-tax-consultants-vs-cbdt-bombay-high-court-final-order-s-250-the-cbdt-is-empowered-to-lay-down-broad-guidelines-for-disposal-of-appeals-by-csita-however-it-cannot-offer-incentive\/\">Chamber of Tax Consultants v. CBDT<\/a> (2019) 263 Taxman 551 that the policy of grant of &#8220;incentives&#8221; to CsIT(A) for making enhancement and levying penalty transgresses the exercise of quasi-judicial powers &#038; is wholly impermissible and invalid u\/s 119. The Court held that &#8220;Incentives&#8221; have the propensity to influence the CsIT(A) and they will be tempted to pass an order in a particular manner so as to achieve a greater target of disposal. The CBDT has withdrawn the credit already granted to the CsIT(A)<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-accepts-that-grant-of-incentives-to-csita-for-passing-quality-orders-is-improper\/cbdt-om-csita-incentives\/\" rel=\"attachment wp-att-13746\">Click here to download CBDT&#8217;s OM Reg CsIT(A)&#8217;s Incentives<\/a><\/div>\n<blockquote><p>F. No. 272\/M-42\/2018-ITJ<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Boa rd of Direct Taxes<br \/>\nJudicial Section<br \/>\nNew Delhi, 9th May 2019<br \/>\nOFFICE MEMORANDUM<\/p>\n<p>Sub : Judgement of Bombay High Court In W.P No.3343 of 2018 and<br \/>\nPIL No.144 of 2018-<\/p>\n<p>Incentivisation of CIT(A) In Central Action Plan 2018-19-reg<\/p>\n<p>Reference: Board&#8217;s O.M of even No. dated 10 \/ 1\/ 2018.<br \/>\nKindly refer to above mentioned subject.<\/p>\n<p>2. In this regard, I am directed to enclose <a href=\"https:\/\/itatonline.org\/archives\/the-chamber-of-tax-consultants-vs-cbdt-bombay-high-court-final-order-s-250-the-cbdt-is-empowered-to-lay-down-broad-guidelines-for-disposal-of-appeals-by-csita-however-it-cannot-offer-incentive\/\">judgement of Bombay High Court<\/a> in W.P No.3343 of 2018 and PIL No.144 of 20 18 whereby the petitioners had challenged the relevant portion of CAP 2018-19 whereby incentives were provided to CsIT(A) for passing &#8216;quality orders&#8217;. As per Para 19 of the order, the court has held that &#8220;<em>In our opinion, such policy is wholly impermissible and invalid. Any directives by the CBDT which gives additional incentive for an order that the Commissioner (Appeals) may pass having regard to its implication, necessarily transgresses in the Commissioner&#8217;s exercise of discretionary quasi-judicial powers<\/em>.&#8221; <\/p>\n<p>The Court has further set aside the relevant portion of CAP 2018-19 even for the past financial year.<\/p>\n<p>3 . Accordingly, I am directed to convey that decision has been taken to accept the judgement and not challenge it further. It is therefore requested that the same may also be referred to newly formed CAP committee for formulating action plan for 2019\u202220.<\/p>\n<p>4. This issues with the approval of Chairman CBDT.<\/p>\n<p>Abhishek Gautam<br \/>\nDCIT (OSD) , ITJ- I , CBDT<br \/>\nCIT (IT&#038;CT). CBDT<br \/>\nNorth Block<\/p><\/blockquote>\n<hr>\n<blockquote><p>F.No.272 \/ M-42 \/20 18-ITJ<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Board of Direct Taxes<br \/>\nJudicial Section<br \/>\nAll Pr. Chief Commissioners of Income Tax<\/p>\n<p>Dated the 9th May,2019<\/p>\n<p>Subject:<\/p>\n<p>Judgement of Bombay High Court in W.P. No. 3343 of 2018 and<br \/>\nPIL No. 144 of 2018. &#8211; <\/p>\n<p>Incentivisation of CIT(A) in Central Action Plan 2018\u202219 &#8211; reg.<br \/>\nKindly refer to enclosed order of Hon&#8217;ble Bombay High Court dated<br \/>\n11.04.201 9 in W.P. No. 3343 of 2018 and PIL No. 144 of 2018. <\/p>\n<p>Note may be taken of para 18 to para 24 of the said order. Hon&#8217;ble High Court, vide para 24 of the said order has set aside Action Items no.3 of chapter 1II of CAP 2018- 19 wherein incentive in the form of additional credits was provided to CsIT(A) for passing quality orders.<\/p>\n<p>2 . It is further informed that in light of the same, additional credit if any allowed to CIT(A) on the basis of impugned portion of the CAP is hereby withdrawn. <\/p>\n<p>3. This issues with the approval of Chairman CBDT.<\/p>\n<p>Yours faithfully<br \/>\nEncl: As above<br \/>\n(Abishek Gautam)<br \/>\nDCIT(OSD)( ITJ -I)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has issued Office Memorandum dated 9th May 2019 in which it has fairly decided to accept the verdict of the Bombay High Court in <a href=\"http:\/\/itatonline.org\/archives\/the-chamber-of-tax-consultants-vs-cbdt-bombay-high-court-final-order-s-250-the-cbdt-is-empowered-to-lay-down-broad-guidelines-for-disposal-of-appeals-by-csita-however-it-cannot-offer-incentive\/\">Chamber of Tax Consultants v. CBDT<\/a> (2019) 263 Taxman 551 that the policy of grant of &#8220;incentives&#8221; to CsIT(A) for making enhancement and levying penalty transgresses the exercise of quasi-judicial powers &#038; is wholly impermissible and invalid u\/s 119. The Court held that &#8220;Incentives&#8221; have the propensity to influence the CsIT(A) and they will be tempted to pass an order in a particular manner so as to achieve a greater target of disposal. The CBDT has withdrawn the credit already granted to the CsIT(A)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-accepts-that-grant-of-incentives-to-csita-for-passing-quality-orders-is-improper\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-13742","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=13742"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/13742\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=13742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=13742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=13742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}