FTS-300315894/2016
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Office Memorandum

New Delhi

Date 19 December, 2016

Sub: Constitution of Committee to give recommendations regarding how to make effective assessment through the use of departmental database/ e-system-reg.

The current scrutiny assessment procedure has been a point of discussion in various fora within and outside the Department. The. Tax Administration Reforms Commission (TARC) also commented  upon this issue in their first report and made specific recommendations to reform the current assessment procedure in scrutiny cases. The TARC had, inter alia, given the following recommendation for reforming the current procedure:

“Hearing in all tax cases by personal presence should be avoided, and data can be sought through an e-system. The taxpayer can upload the data on the e-system, Personal hearing should be sought only in complex cases. (Section  VI.4.a)”

2. CBDT has accepted the above recommendation for implementation in a phased Pilot projects for email based assessments have also been run in 7 cities in respect of non-corporate assessees which need to be evaluated for their efficacy. However, for re-engineering the assessment procedure, it would be necessary to arrive at a definite standard assessment procedure through an e-system which should incorporate within itself the principles of certainty, transparency, accountability and natural justice on the one hand and rules for addressing the revenue risks involved on the other. Necessary changes in the Income Tax Laws and Rules may also be necessary for implementing such an assessment procedure.

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3. To study the issues involved and with a view to develop such a re-engineered assessment procedure, a committee has been constituted with the following members:

(i) Shri Harish Kumar , Pr. DIT (Investigation)-1 , Delhi – Chairman

(ii) B. K. Sinha, CIT(C&S), CBDT

(iii) Shri Sanjai Verma, CIT(Intl. Tax.), Bengaluru

(iv) Shri Anand Jha, CIT(IT&CT), CBDT

(v) Shri Sanjeev Singh , ADGIT(Systems)-II, Delhi

(vi) Shri Ramesh Krishnamoorthi , ADGIT(Systems)-III , Delhi

(vii) Shri Santosh Kumar , Addl. Director (Investigation), Delhi

4. The Committee will submit their recommendations within 1month of its constitution to the Member (IT), CBDT.

This issues with the approval of Chairman, CBDT.

(Dr. B. K. Sinha)
CIT(C&S), CBDT

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9 responses to “CBDT committee to suggest effective scrutiny assessment measures”

  1. Tax.Adv.B.S.K.RAO says:

    If right click is disabled, article will not get informative & useful comments. Participants wants save time while posting valuable, informative & useful comments. Therefore, it is requested before the admin to enable right click

  2. Tax.Adv.B.S.K.RAO says:

    AO’s in Income-Tax Deptt. do the adhere to or respect the instruction of CBDT. In this situation what good action Sir. In spite of instruction to mention e-mail in every notice issued by IT Deptt, no AO or not even learned officials in CBDT follow its own instructions.

  3. Sudhir C says:

    Additions on estimated disallowances of expenses are still being made by AOs without pinpointing the instances justifying the disallowances in spite of clear instructions by CBDT on the issue. CBDT instructions on other issues are not respected. There are so many instances. AOs having no jurisdiction are issuing notices u/s 142(1) and so on……..

  4. Tax.Adv.B.S.K.RAO says:

    Take the case of TDS provisions & its procedural aspect. In India bouncing rate of cheque is very high. Hence no one believe third person & insist for cash payment. Now, such transactions are also subject to TDS. TDS on property OK, as it directly go to seller a/c. But other TDS procedure of making lump-sum payment & crediting the same to concerned PAN on filing quarterly return is highly complicated. Hence, I suggest that, here also direct transfer of TDS to PAN should be made immediately on payment of challan by making provision for furnishing PAN & TAN number in the challan itself. This will avoid quarterly filing of TDS returns. As & when TDS are remitted, it will directly go to concerned PAN a/c. Why complicated procedure of making lump sum payment of TDS & giving credit for concerned PAN in the return. Further, TDS limit should be hiked to avoid TDS amount of three digits. Ie, small TDS should be avoided by hiking the monitory limits for TDS.

  5. Tax.Adv.BSKRAO says:

    Income-Tax Act has been amended in such a way that the business people can not do business & should concentrate on compliance requirements under it rather doing business. IT Act has been made totally complicated by CBDT since three decades

  6. Tax.Adv.BSKRAO says:

    CBDT issued instructions to mention email address in all notice issued by IT Deptt., If fact it is not followed by CBDT itself. I have many RTI reply & notice issued for hearing without mentioning email address in it as proof.

  7. Tax.Adv.BSKRAO says:

    CBDT is junk administration body for Income-Tax law. Tax policy heads sitting in AC Room can not understand the ground reality of the situation. Original Income-Tax law well drafted by Finance Ministry has been made more complicated by CBDT since past three decades.

  8. Tax.Adv.BSKRAO says:

    In the present scrutiny system, whether it limited or full scrutiny, assessment are made on detailed investigation & completed only after 5 to 10 hearings, CDBT circulars have no value, it’s only on record. No AO will follow CBDT circulars issued for assessment or survey proceedings.

  9. Nem Singh says:

    Good action of the Government to reform the scrutiny system of the department. It is true that the current system pick the pocket of the officials or generate litigation and harassed the assessee. And in litigations to department do not succeed. Scrutiny assessment should be settled on compromise basis and earn extra revenue except the issue arise due to legal interpretation.
    We should also try to deal with matter on merits instead of promoting culture of corruption and save our dignity before the authority.

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