Improving quality of scrutiny assessments – Central Action Plan (‘CAP’) for Financial Year 2012-13
Letter DO F.No. 225/97/2012/ITA.II, dated 25-9-2012
As you are aware, the CBDT has laid special emphasis in the CAP 2012-13 for improving the quality of assessments. In this regard, a strategy has been mentioned at Annexure-II (pgs. 38-43) of CAP Document.
2. The then Member (IT) had asked the Chief-Commissioners of Income-tax (‘CCsIT’) to send list of top 100 quality assessments in respective charges. This direction of Member was not complied with by many of CCsIT which has been viewed seriously by the Board. It is expected from the field-formation that in future the directions of the Board will not be ignored.
3. Some CCsIT have forwarded the list in mechanical manner without bringing out the quality aspect of the assessments. The analysis of the information supplied to the Board shows that the quality of assessments in the FY 2011-12 has been far from satisfactory in majority of cases.
4. The CCsIT are therefore requested to sensitize the Assessing Officers in their Region to pay focused attention towards the pending assessments to be completed till March, 2013. The strategy mentioned in CAP document should be followed by each Assessing Officer to bring out the quality in assessments. The steps suggested in the guidelines for scrutiny cases should also be scrupulously adhered to.
I am confident that if proper attention is paid to this aspect of work at this stage it will help not only in improving quality of assessments but also in augmenting the post assessment tax revenues.
This is a routine matter in the Income tax Department. Almost every year, the CBDT carries on the ritual of issuing a D.O. or an Instruction to the field formations for improving the quality of Scrutiny Assessments. Having served the Department for thirty six years, I can say with my experience that unfortunately,very little attention is being paid by the Department in improving the quality of the Assessing Officers vis-a-vis their knowledge of law , investigation skills, and finally drafting of the assessment orders. Added to this, large number of time barring scrutiny cases are dumped on the officers which leaves very little time for making any meaningful investigation of the case before him. In fact completing the assessments SOMEHOW before the time barring date becomes the only goal. Added to this is continuous pressure of submission of variety of periodical and other reports on daily bases. The ills are many. That is the reason the Authority issuing the D.O., though being fully aware of the problems, does his job of issuing a D.O.in a mechanical way fully knowing what fate awaits such D.O..And the Chief CITs’ to whom the the D.O.s are issued, knowing the worth of such D.O. ignore it and the irony of it is that one of such Chief CITs when he becomes a Member of the CBDT or becomes its Chairman, in turn also issues such type of D.O.as if to show to the world his concern for the quality of assessmenst. The person issuing such D.O.s knows in the heart of his heart that the whole thing is only an eye wash and meant to protect his chair.
It is worthwhile to conduct a study of the result of all such D.O.s or Instructions issued in the past by the CBDT. One fails to understand what quality the CBDT expects when newly promoted Officers with no background of investigation to their credit are posted in some of the very sensitive charges like Central Charges which include search and seizure cases.
To sum up there is no sincere effort on the part of the CBDT in equipping the field officers dealing with scrutiny assessment with required technical and administrative support and with such casual approach of the CBDT on such vital issue, the problem will continue in the Department in the years to come.
sir,
What is CAP and the deatils of the CAP should be made available to the assessee aslo so that they can also think of furnishing the quality information to the department and help the assessing officer in framing the quality assessments.The CPA is a secret document ment only for the internal use of the department and the assessee nor the representatives will know the contents of the same.It means secret qualtiy will be maintained.In a recent application under RTI i have received the replay from the Board, that the details of the quantifiction of the 44AB ausit report and its impact on tax collection information is not maintained and not avilable in the Board,it means the depatment with out any basis ammending the Income Tax Act to facilitate only a FEW and after ammendement the Board nor the Government is worried about the impact of the same on the economy and on tax collection.Such action of the Board and the Governmenet is waste of national income.
Sir,
On the basis of AIR information in respect to cash deposition of Rs. 10 lac or more in the bank a/c or transaction more than Rs. 30 lac in respect to the property. The A.O. either soughting information u/s 133(6) of I.T. without mentioning approval letter No. of the concerned Commissioner of I.T. The A.O. perusing either assessee personally appear with documents for verification of transaction other wise letters not accepting on dak directly without verification of documents.The A.O. should be asked to mention the letter no through which approval sought by him. Reply should be accepted without verification personally. The harassment are being done by the A.O. Please may kindly be give necessary direction.
It should be done carefully.
CA. Subhash Chandra Podder,FCA
Kolkata
28/09/2012