Taxpayers facing
"high-pitched" assessments or unfair scrutiny by the Income Tax
Department can now attempt to get their grievances redressed in a short time
before undertaking the arduous litigation route of courts or other appellate
mechanisms.
Central Board of Direct Taxes (CBDT)
Chairperson Anita Kapur, who is the administrative head of Income Tax
department.
In a maiden
initiative, the Finance Ministry, through the Central Board of Direct Taxes
(CBDT), has asked the department to create "local committees"
comprising senior officers in each region, and has directed them to dispose
such grievance and complaint petitions "within two months" from the
end of the month in which such a petition is received.
These committees
are expected to become functional across the country from next month.
"The CBDT has
asked the taxman to constitute these committees in all the Principal Chief
Commissioner ranges of the country. It is expected these will begin functioning
from the middle of next month," a senior official said.
A taxpayer, who
feels unsatisfied by an order of a tax assessment officer or thinks it is
irrational, can petition the committee which will be publicised in the media by
the respective tax regions, the official said.
The local committee
of chosen tax officers will examine "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 involvement of assessing
officer".
"The committee
would ascertain whether the addition made in assessment order are not backed by
any sound reason or logic, the provisions of law have grossly been
misinterpreted or obvious or well-established facts on records have outrightly
been ignored. The committee would also take into consideration whether the
principles of natural justice have been followed by the assessing
officer."
However, the CBDT has made
it clear that these committees "in no way, can be considered to be an
alternative or additional appellate channel" but are being created to
effectively and efficiently deal with genuine grievances of taxpayers and
"help in supporting an environment where assessment orders are passed in a
fair and reasonable manner."