Friday 3 May 2013

Arrear Demands of the Incometax Department Resolving grevances

The Incometax Department had last year, uploaded the arrear demands of the assessees as per the books of accounts of the Incometax Officers.

Their books contained lot of mistakes. Several demands not pertaining to the assessees concerned were uploaded. In several cases huge demands, where the assessee filed returns showing below taxable income or loss were also shown as arrears with some tax effect. In many cases the intimation of the demand were not even despatched or served on the assessees. 

The CPC Bangalore started deducting these unverified demands with out giving proper notice to assessees. 

Representations to the Incometax Officers were met with the reply that it is not in their realm and the party had to approach CPC Bangalore. CPC Bangalore never replied.

It is in these circumstances, the High Court of Delhi, intervened on a letter from a Chartered Accountant, and issed directions that the refunds should not be adjusted for arrear demands, unless the assessees were issued  letters calling for objections. 

Based on the directions, the CBDT had earlier issued instructions to the Incometax Officers to settle these grivances at the earliest. However nothing much was done. Now the CBDT had again issued fresh instructions to the field formations to observe this month as grevance settlement month and settle all the grevances. I hope that better sense will prevail and the assessees grevances in this regard will be settled.

In many cases I find that the officers were not trained enough on the technology side and the software,the assessing officers use and software used by the CPC Bangalore, are not compatible and this results in these problems. 

I do hope that the department take necessary steps to train the officers and software issues may be cleared at the earliest.

For more information the readers may go through the link as below:

http://www.itatonline.org/info/index.php/resolve-arrear-demand-grievances-in-transparent-manner-cbdt-directive/



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