NEW DELHI, Nov 10: To ensure a friendly environment for taxpayers during their interaction with the IT department, CBDT has issued a set of instructions for avoidance of baseless assessment and disposal of grievances within a stipulated time period.
The Central Board of Direct Taxes (CBDT), which is the apex body to frame policies for the IT department, said the new instructions were aimed at bringing about a non- adversarial regime as stated by Finance Minister Arun Jaitley in recent interactions he had with the department.
“On several occasions the Finance Minister has emphasised the need for furthering a non-adversarial tax regime. A non-adversarial tax regime cannot be achieved without concerted endeavour at each level especially at levels where the public interaction is high,” the CBDT wrote to all Principal Chief Commissioners and Chief Commissioners of IT in the country last week.
Regarding issuance of summons which is a major area of complaint by taxpayers, the Board said these communications, sent to assessees under provisions of the IT Act, should only be made in “deserving cases”.
“The issue of summons without adequate caution and due application of mind has caused concern to the Board. Supervisory authorities have to ensure that the summons are issued only in deserving cases. Summons should also clarify if the person has been called as a witness or in his own case and the matter for which he or she has been called,” CBDT said.
It also asked the range heads of the IT department to “supervise the work of their subordinates to ensure due discharge” of duty in scrutiny cases.
Under IT laws, when an assessee’s case lands in scrutiny (done by computer system on a random basis), he or she has to supply additional document-based information to the taxman including making visits to the officer concerned, which has been a major issue of grievance for taxpayers for long.
“Despite less than one per cent cases being selected for
scrutiny assessment, this (scrutiny) area of work continues to remain in focus where the tax administration is questioned as adversarial….The range heads are required to ensure that frivolous additions or high-pitched assessments without proper basis are not made,” CBDT told the IT department.
The Board, under the same order, advised the IT staff at all levels to follow these instructions “scrupulously” as non-adherence to the directions will be “viewed very seriously and disciplinary action initiated”.
“The set of twelve instructions has been put together as part of taking further the agenda of a non-adversarial tax regime as articulated by the FM and the government. These instructions will now act as guiding principles especially in those cases where the department has direct interaction with the taxpayer,” a senior officer said.
Instructions have also been issued to the taxman for being professional in issuing refunds to taxpayers and ensuring that coercive action is used to the least in cases of recovery of tax demands.
With an aim to cutting down on frivolous litigation, for which the department has been pulled up bodies like CAG and various courts, CBDT has asked senior officers to make a forward move in the cases based on “merits.”
“Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved. Cases have separately been brought to the attention of the officers wherein tribunals/courts have commented adversely on frivolous filing of appeals,” it said.
The Board also asked the department that the grievances of taxpayers were disposed of within the “specified time period” as enumerated in the Citizens Charter of the department. (PTI)
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