CA TUSHAR DOCTOR
Pending demands & increasing litigation are mainly arising due to the certain administrative lapses. An attempt has been made to list a few such issues which need to be looked into.
Post AY: 2007-08 returns filed in ITR Forms do not require submission of any documents with the ITR. So all the TDS Certificates are submitted during the assessment proceedings. However even after submission of TDS Certificates as claimed in the return of income, credit is not given to the assessee. Even after filing rectifications, replies and repeated reminders to the departments credit is not provided to the assessee. As a result demand and recovery proceedings follow. In some cases even bank accounts are attached and also adjustment is made against refunds of other years of the assessee.
After passing of orders by Commissioner of Income tax (Appeals) & ITAT appeals, the appeal effects of the same are not given although the appeal effects working are provided to the department. Hence the amount always remains in arrears in the records of the department even when the orders are passed in favour of the assessee.
High pitched assessments and forceful recoveries of tax demands including when stay applications are pending before tribunal & delay in completing appeals by CIT(A) particularly which are resulting in refunds also need to be looked into.
There are several intimations and communication on arrears of demand which are mailed to the assessee. Online rectification is required to be filed for any rectifications for the same. Even if the intimations or arrears are rectified the rectified orders are not uploaded by the CPC department. So the Income tax systems of the Income tax departments keeps showing outstanding demand & it creates a lot of confusion regarding tax position of the assessee.
Further, whenever any letter or documents are filed with the Income tax department offices, a stamp bearing the jurisdictional assessing officer number is provided on the document. However no acknowledgment number or a machine number is provided. If the documents are acknowledged by the machine numbers, the way the income tax returns are stamped, it shall improve and ensure accountability of the documents submitted to the department both from the department and from assessee side.
As a consequence of the above, assessee is compelled to pay the demands since the same are showing up in the system which creates undue hardship to taxpayers. The aforesaid administrative issues should be sorted out at the earliest so as to save time & cost both to the department as well as to the assessee.
