Representation

Pursuant to the directions of the Delhi High Court in the case of Court on its Own Motion V Commissioner of lncome Tax, the Central Board of Direct Taxes (CBDT) had issued five instructions containing various directions to implement the directives of the court, instruction numbers 3,4,5,6 and 7 of 2013.

Under these instructions, assessing officers were directed to carry out the following in relation to CPC demands:

1. Give application number to the assessee for rectification applications when they are filed, and maintain a register of such applications online;
2. Dispose of applications for rectification within two months from the date that they are filed; 3. Serve unserved intimations where demands were raised by 31st August 2013;
4. Grant credit for mismatched credits on production of TDS certificate after verification of TDS payment;
5. Grant refunds by 31st August 2013, where refunds u/s.143(1) have been adjusted by CPC against demands of earlier years without following the procedure laid down u/s.245;
6. Grant interest u/s.244A where refunds are granted after rectification u/s.154 without excluding the period taken to file rectification application u/s.154.

Unfortunately, it has been noticed that, other than issue of notices u/s.245 by CPC proposing to adjust the refunds determined u/s.143(1), the other aspects of the instructions have by and large not been given effect to. Refunds wrongly adjusted are yet to be received by assessees. Unserved intimations with demands are yet pending service. Application Numbers are not being given to assessees at the time of filing rectification applications except in offices where ASK is operational, and are not being disposed of within two months.

One of the reasons noticed for pending rectifications is that in many cases, migration of PAN is pending from lncome Tax officers to Assistant commissioners. We understand that lncome Tax Officers are reluctant to transfer high tax paying cases to Assistant commissioners, where the assessments u/s.143(3) are actually being carried out and where rectifications are pending, as they would not get credit for advance tax paid by such taxpayers if they were to do so, and would then fall short of their tax collection targets.

We submit that proper follow up by Commissioners and Chief commissioners is essential, to see that all Such cases are disposed of and instructions scrupulously followed, as taxpayers are finding that while tax recoveries are being followed up on an emergency basis, refunds due are being totally ignored. Almost 2 months have elapsed since the deadline given by the CBDT.

We would request you to kindly look into the matter, and set up a proper monitoring mechanism to ensure that taxpayers are able to get the benefit of the CBDT instructions.

Thanking You,
Yours sincerely,
For Bombay Chartered Accountants’ Society
Naushad Panjwani                                                                                   Gautam Nayak
President                                                                                                 Chairman
                                                                                                               Taxation Committee