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2022-04-23
F.No.225/101/2021-ITA-II
Governmentof India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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Room No. 245-A, North Block,
New Delhi, the 23rd April, 2022
To
All Pr. CCsIT/DGsIT/Pr.CCIT(Exemption)/Pr. CCIT(International-tax)
Madam/Sir,
Subject: Revised Instruction for constitution and functioning of ‘Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment’ -reg.
1. The Central Board of Direct Taxes (the ‘CBDT’), by its Instruction No.17/2015 dated 09.11.2015 (copy enclosed) provided for constitution of ‘Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment’ in each Pr.CCIT region. The Local Committees were constituted to expeditiously deal with Taxpayers’ grievancesarising from High-Pitched Scrutiny Assessment.
2. Taking into consideration the changes in organizational set-up subsequent to launch of Faceless Assessment regime, the CBDT, in exercise of its powers under section 119 of the Income-tax Act,1961(‘the Act’) and in supersession of its earlier Instruction No. 17/2015 dated 09.11.2015, hereby issues the following instructions regarding constitution and functioning of ‘Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment’:
A. Constitution of Local Committees:
(i) Local Committees to deal with Taxpayers’ Grievances from High-Pitched Scrutiny Assessment (“Local Committees’) are required to be constituted in each Pr.CCIT region across the country including the Pr.CCIT(Exemption) and Pr.CCIT(International Taxation).
(a) The Local Committee shall consist of 3 members of Pr.CIT/CIT rank. To have a perspective of processes involved in Faceless Assessment process, Local Committees so constituted in each Pr. CCIT region and Pr.CCIT(Exemption) shall have one Pr.CIT (AU)ofthe region. The Local Committee constituted under the Pr.CCIT(International Taxation) need not have a Pr.CIT(AU) as a member, as the assessments under the International Taxation chargesare outside the purview of Faceless Assessment regime.
(b) The other members maybe selected from the pool of officers posted as Pr.CsIT/Pr. CIT(Central)/CIT(Judicial)/ CIT(Audit)/CsIT(DR),ITAT of the respective Pr.CCIT region. For the Local Committees constituted under the Pr.CCIT(Exemption) and Pr.CCIT(International Taxation), members maybeselected from their respective pool of officers.
(c) Theseniormost Memberwould be designated as the Chairperson ofthe Committee.
(d) The Addl. CIT (Headquarters) to such Pr. CCIT would act as a Member- Secretary to the Local Committee.
(ii) The Local Committees so constituted may co-opt other members, ifnecessary.
(iii) The Pr. CCIT concerned should ensure that the Local Committees are duly reconstituted after transfer/promotion of Membersofthe existing Local Committees.
(iv) Adequate publicity shall be given regarding constitution and functioning of Local Committees for filing of grievance petitions regarding High-Pitch Scrutiny Assessments. The communication address of such Local Committees shall be displayed at prominent placesin the office building.
B. Jurisdiction of Local Committees:
The Local Committees constituted as above shall deal with the grievance petitions of the assessees underthe jurisdiction of respective Pr.CCIT regarding High-Pitched Scrutiny Assessments completed under both Faceless and non-Faceless Assessment regimes. These Committees constituted in Pr. CCIT Region will also handle the grievances pertaining to Central Charges located underthe territorial jurisdiction of the Pr. CCIT concerned.
C. Receipt of Grievances:
(i) Grievances related to High-Pitched Scrutiny Assessments completed under the Faceless Assessment regime will be received by NaFAC through dedicated e-mail id: samadhan.faceless.assessment@incometax.gov.in. Grievances so received shall be forwarded to Local Committee of the Pr. CCIT concerned by NaFAC,underintimation to Pr. CCIT of the Region/ Pr.CCIT(Exemption).
(ii) Grievances related to High-Pitched Scrutiny Assessments completed under the nonFaceless Assessment regimewill be received by the office of Pr.CCIT concerned,physically or through e-mail. Grievancesso received shall be forwarded to Local Committee of the Pr. CCIT concerned.
D. Action to be taken by the Local Committees on grievancepetitions:
(i) A grievance petition received by the Local Committee would be acknowledged. A separate record would be maintained for dealing with such petitions by the MemberSecretary.
(ii) Member — Secretary on receipt of taxpayers’ grievances of High-Pitched Assessment, will forward the same to the Chairman and Membersofthe Local Committee within three daysofreceipt of the grievance.
(iii) The grievance petition received by Local Committee would be examined by it to ascertain whetherthereis a prima-facie case of High-Pitched Assessment, non-observance of principles of natural justice, non-application of mind or gross negligence of Assessing Officer/Assessment Unit.
(iv) The Local Committee maycall for the relevant assessment records to peruse from the Jurisdictional Pr.CIT concerned.
(vi) The Local Committee may seek inputs from the Directorate of Systems (ITBA/efiling/CPC-ITR, CPC-TDS, etc.), on Systems-related issues emanating from the grievance/matter under consideration, if considered necessary.
(vii) Local Committee would ascertain whether the addition(s) made in assessment order is/are not backed by any sound reason orlogic, the provisions of law have grossly been misinterpreted or obvious and well-established facts on records have outrightly been ignored. The Committee would also take into consideration whetherprinciples of natural justice have been followed by the Assessing Officer/Assessment Unit. Thereafter, Local Committee shall submit a report treating the order as High-Pitched/Not High-pitched, along with the reasons, to the Pr. CCIT concerned.
(viii) The Local Committee shall endeavor to dispose of each grievancepetition within two months from the end of the month in which suchpetition is received byit.
(ix) Member- Secretary will ensure that the meetings of the Local Committees are held at least twice in every month during the pendency of the grievance petitions and that timely reports are submitted to the Pr. CCIT concerned.
E. Follow up action by Pr.CCIT:
(i) On receipt of the report of Local Committee, Pr. CCIT concerned maytakesuitable administrative action in respect of cases where assessment was foundto be High-Pitched by the Local Committee, which inter-alia include:
a) Calling for explanation of the Assessing Officer/Assessment Unit (through Pr.CCIT,NaFAC)and any other administrative action as deemedfit.
b) Administratively advise the Pr.CIT concerned to prevent any coercive recovery in cases identified as high pitched by the Local Committee.
(ii) The findings of the report of the Local Committee mayalso be shared by the Pr.CCIT concerned with NaFAC and/or Directorate of Income-tax(Systems), as feedback, for revisiting the SOP/policy on Faceless Assessment and/or addressing the Systems related issues.
F. Monitoring the functioning of Local Committee:
(i) The Pr. CCIT concerned shall review the work of the Local Committee on a monthly basis. Pr. CCsIT shall highlight outcome of work of Local Committees along with the action taken on the suggestions made by the Local Committees in respect of cases where assessment were foundto be High-Pitched by the Local Committees, in their monthly D.O. letters to the respective Zonal Member.
(ii) Quarterly Report regarding the functioning of Local Committees shall be furnished by the Pr. CCIT concerned to the O/o Member (IT&R), CBDT under intimation to the respective Zonal Memberin the prescribed format (copy enclosed) by 15" of the month following the quarter ended.
3. The purpose ofconstitution of Local Committeesis to effectively and efficiently deal with the genuine grievances of taxpayers and help in supporting an environment where assessment orders are passed in a fair and reasonable manner.It is to be noted that Local Committees cannot be treated as an alternative forum to dispute resolution/appellate proceedings.
4, It is emphasized that the task of constitution of Local Committees as perthis Instruction be finalized within 15 days of issue of this Instruction or 30.04.2022, whicheveris later, and compliance report may be sent by the Jurisdictional Pr. CCsIT/Pr. CCIT (Intl.Tax.)/ Pr.CCIT(Exemptions) to their respective Zonal Members with a copy to Member (IT&R), CBDT.
5. This issues with the approval of Chairman, CBDT.
Enclosure: As above
(Ravinder Maini)
(Director) (ITA-I]), CBDT.
(Ravinder Maini)
(Director) (ITA-I]), CBDT.
Quarterly Report on functioning of Local Committees to deal with taxpayers’ grievances from High-Pitched Scrutiny Assessments
Date:
Quarter 1/2/3/4, Year__
|
Number of (1) |
Number of (2) |
Number of (3) |
Number of [(1+2)-3] (4) |
Number of (5) |
Synopsis of (6) |
(Note: The above information is to be submitted by 15" of the month following the quarter ended)
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Instruction No. 17/2015
F. No.225/290/2015-ITA-II Governmentof India
Ministry of Finance
Department of Revenue (CBDT)
North Block, New-Delhidated the 9" November, 2015
To
All Pr. CCsIT/DsGIT/CCIT(Exemptions)/Pr. CCIT(international-tax)
Subject: Constitution of Local Committees to deal with Taxpayers Grievances from High-Pitched Scrutiny Assessment — reg.-
Sir/Madam
1. Board has consistently been advising the field authorities to be fair, objective and rational while framing scrutiny assessment orders. Role of supervisory authorities in this regard, has also been highlighted by the Board from time to time.it has, however, been brought to the notice of Board that the tendency to frame high-pitched and unreasonable 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 Department as well as Appellate Authorities.
2. In view of the above, a need has been felt to lay down an institutional mechanism to quickly resolve the taxpayers’ grievances arising on account of high-pitched and unreasonable additions made by the Assessing Officers. CBDT has decided that following measures may be taken in the field formation for handling taxpayers’ grievancesarising from high-pitched scrutiny assessment orders —
i) Local Committees to deal with Taxpayers Grievances from high-pitched scrutiny assessment (‘Local Committee’) are required to be constituted in each Pr. CCIT region across the country. Ideally, the Local Committee may consist of three members ofPr. CIT/CIT rank. The members can be selected from the poolofofficers posted as Pr. Csi! CIT (Judicial) and CsIT (DR), ITAT at the station where the Headquarters of the respective Pr. CCIT is located. The Addl. CIT (Headquarters), to such Pr. CCIT would act as a Member — Secretary to the Local Committee. The senior most Member would be designated as the Chairman of the Committee.
ii) The Local Committees so constituted would deal with the grievance petitions related to high-pitched scrutiny assessments completed within the Jurisdiction of the respective Pr. CCIT. These Committees would also handle the grievances pertaining to Central Charges located undertheterritorial jurisdiction of the Pr. CCIT concerned.
iii) Similar committees would also be setup in the charges of Pr. CCIT(intl. Tax.) and CCIT (Exemptions). In these committees, the Officers working as CsIT(International Taxation Transfer Pricing) and CsIT (Exemptions) respectively could be selected as Members. TheAddl. CIT (Headquarters) to Pr. CCIT (intl Tax./CCIT (Exemptions) would act as a Member — Secretary to these Local Committees.
iv) The Committees may co-opt other members,if necessary.
v) A grievance petition received by the Local Committee would be immediately acknowledged and separate record would be maintained for dealing with such petitions.
vi) It shall be the endeavor of the Local Committee to dispose of each grievancepetition within two months from the end of the month in which such Grievance Petition is received byit.
vii)The grievance petition received by the Local Committee would be examined byit to ascertain whether there is a prima-facie case of high-pitched assessment, non-observance of principles of natural justice, non-application of mind, gross negligence or lack of involvementof assessing officer. The Committee would ascertain whether the addition made in assessment order are not backed by any sound reasonor logic, the provisions of law have grossly been misinterpreted or obvious and well established facts on records have out rightly been ignored. The Committee would also take into consideration whetherthe principles of natural justice have been followed by the assessing officer.
viii) If it is established that unreasonable and high-pitched additions have been made bythe assessing officer, a report would be sent to the Pr. CCIT/Pr. CCIT (Intl Tax.)/CCIT (Exemptions), as the case may be, by the Local Committee. The Pr. CCIT/CCIT,after considering the views of the committee, would take suitable administrative action, wherever required. Further, departmental position as determined by the Local Committee in such cases would be appropriately presented before the Appellate Authorities so that litigation is curtailed.
ix) It is, however, clarified that the purpose of constitution of Local Committee is to effectively and efficiently deal with the genuine grievances of taxpayers and help in supporting an environment where assessment orders are passed in a fair and reasonable manner. The Local Committee, in no way, can be considered to be an alternative /additional appellate channel.
3. The Board has emphasized that the task of constitution of Local Committees be finalized in this month itself and a report on compliance may be sent by the Pr. CCsIT/Pr. CCIT (Intl.Tax.)/ CCIT(Exemptions) to their respective Zonal Members with a copy to Member(IT). CBDT.It has also been desired that the outcome of Local Committee’s work may be highlighted in each monthly DOs required to be sent to the Zonal Members.
(Ankita Pandey)
DCIT(OSD)ITA-I
