Reply of BCAS Letter

My Dear,

1. May I at outset wish you and your officers every success
in your endeavours during the current financial year. Even as all of you attend
to your onerous responsibilities, I am sure you will all find time to attend to
taxpayer grievances, an important area of concern for the Government. I am happy
to return to Mumbai as the Department’s Ombudsman. I am indeed looking forward
to working with you and your officers in the larger interests of the
Organisation.

2. Since the institution of Ombudsman is new, I am enclosing
herewith a copy of Income Tax Ombudsman Guidelines – 2006. It would be helpful
to me if you could have this document circulated amongst all the officers of
your charge, so that they become conversant with its provisions.

3. Very briefly, the Ombudsman will mostly focus on
administrative complaints. These have been clearly specified in Guideline 9
(Chapter IV), and include inter alia grievances relating to delays in
disposal of applications related to rectification applications, appeal effects,
waiver of interest, release of seized books of accounts and assets, issue of
refunds, failure to give credit for taxes paid, etc.

4. Under Guideline 13, the Ombudsman is ordinarily expected
to settle a taxpayer’s grievance by agreement within a month of the filing of
the complaint. Accordingly, my office would directly be writing to the officer
concerned immediately on receipt of the complaint. Ordinarily, the officer would
be expected to reply back within 15 days of the receipt of this complaint. If he
has settled the grievance by then, he should indicate as such. In that case no
further action would be necessary. Ideally, from every point of view this would
be the best result. If, however, the grievance cannot be settled, the officer
should forward his comments to me after consulting his superiors. I am sure you
would agree with me that as a general rule there should be a genuine effort to
settle as many grievances as possible on the basis of agreement.

5. Where a grievance cannot be settled by agreement, I would
mediate as required under the Guidelines. If results are still not forthcoming,
I would be passing an Award.

6. Under Guideline 8(II)(e), I am required to send a monthly
report to the Chairman, CBDT and Secretary, Department of Revenue, Ministry of
Finance, recommending appropriate action against erring officials who fail to
redress legitimate grievances. My own expectation however is that such instances
would be very rare indeed and mostly confined to very few cases where the
officials concerned are guilty of recalcitrant conduct involving deliberate
defiance.

7. Under Guideline 8(II)(g), I am required to annually
forward to you and the Board, a list of Awards made by me during the financial
year against the officials working in your charge, so that cognisance can be
taken of the same while writing their Annual Confidential Reports. Again, the
number of cases where adverse notice would need to be taken may perhaps be
limited.

8. The purpose behind my outlining some of the relevant
provisions in the preceding paragraphs is not to scare or demoralise your
officers. I would like to begin my innings on a very positive note. I am quite
sure if we all follow the spirit of Guidelines and take interest in redressing
the legitimate grievances of taxpayers in a prompt and efficient manner, there
will be no occasion to invoke any punitive provision.

9. Please rest assured that I will always be available to
your officers for any guidance or help. They are always free to approach me
after taking an appointment from my office.

With regards Yours

(Hardayal Singh)

Encl : As above†

To,