Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: TDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
Direct Tax »
  CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 CBDT unveils norms for computing FMV of trust assets
 CBDT starts issuing second round of Certificates of Appreciation to tax payers
 Income Tax Department Launches SMS Alert Service on TDS Deductions
 Salaried taxpayers to get SMS alerts for TDS deductions
 Salaried tax payers to get SMS alerts on TDS deductions
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair

CBDT orders I-T offices to set up grievance cells
December, 10th 2015

In a bid to tackle high-pitched and unreasonable tax assessment orders, which result in heavy income tax (I-T) demands, the Central Board of Direct Taxes (CBDT) issued a notification on Monday requiring setting up of local grievance committees across I-T offices in India.

The CBDT, in its notification, acknowledges that: "The tendency to frame high-pitched and unreasonable I-T assessment orders is still persisting due to which grievances are being raised by the taxpayers. Such grievances not only reflect harassment of taxpayers but also lead to generation of unproductive work for the I-T department."

Such unreasonable I-T orders, especially in the realm of international taxation and transfer pricing, have been a cause of concern for the finance ministry. The high I-T collection targets assigned to tax officers, on which their performance appraisal is based, has often been blamed for such I-T assessments. If the I-T assessments are frivolous in nature, the tax department loses the case when the taxpayer files an appeal and the matter is disposed of by the I-T appellate tribunals (ITATs) or courts.

Recently, Prime Minister Narendra Modi, speaking at the Economic Conclave in Delhi, had announced a change in the performance appraisal mechanism. "The appraisal should reflect whether or not the officer's orders and assessments have been upheld on appeal. This will deter corruption and also motivate officers to pass correct orders," he had said. The additional measure of setting up of local grievance committees will further usher in a tax-friendly regime, said a government official.

The local committees comprising of three high-ranking I-T officers are to be set up by November end. On receiving a grievance petition from the taxpayer, the committee has to dispose it within two months.

The committee's responsibility is to examine whether there is a 'prima facie' (apparent) case of high-pitched I-T assessment, non-observance of principles of natural justice (there should be no bias), non-application of mind or even gross negligence on part of the I-T officials involved in the assessment of that particular case.

These committees will ascertain whether or not the additions made to the income of the taxpayer in the assessment order, resulting in high I-T demands, are backed by sound reason or logic. It will also examine whether the provisions of law have been grossly misinterpreted or obvious and well established facts on records have been outright ignored by the I-T officials. If the committee concludes that an unreasonable and high-pitched addition to the income of the taxpayer has been made by the tax official, a report will be sent by it to the Principal Chief Commissioner of Income-Tax (Pr CCIT), who is responsible for tax administration. The Pr CCIT will then take suitable administrative action in a bid to curtail litigation.

CBDT's notification clarifies that the objective of setting up of such local committees is to effectively and efficiently deal with the genuine grievances of the taxpayers and support an environment where I-T assessment orders are passed in a fair and reasonable manner. Such local committees are not an alternative or additional channel of filing an I-T appeal.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions