Indiscriminate notices by Income Tax Department without allowing reasonable time

National Chamber of Industries & Commerce, U.P has made a representation against Indiscriminate notices by the Income Tax Department without allowing reasonable time. They submitted that in the last few days large number of taxpayers in whose cases the Assessment/Re-assessment, proceedings were pending at the Income Tax Department have been in receipt of various notices, Show cause notices, notices under section 263 on various issues, the compliance of which is enforced to be required to be made in a very short period i.e.,. 2 to 3 days or few hours in many cases.

Considering the above it is earnestly requested to review the situation immediately and take necessary steps to extend the limitation date for the assessement/Re-assessment, Penalty & Sec 263 Cases getting barred on 31.03.2022 exercising the power vested in the Government of India in the interest of the taxpayer at large. Full text of the representation is as follows:-

National Chamber of Industries & Commerce, U.P

NCIC/24/2021-22/ 546

29 March 2022

To
Smt. Nirmala Sitharaman,
Hon’ble Union Minsiter of Finance, Government of India
North Block,
New Delhi

Respected Madam,

Sub: Indiscriminate notices by the Income Tax Department without allowing reasonable time.

Extension of limitation date:

The Chamber making this representation is apex body of Trade & Industry of Agra & nearby areas. By this representation we want to draw your kind attention that in the last few days large number of taxpayers in whose cases the Assessment/Re-assessment, proceedings were pending at the Income Tax Department have been in receipt of various notices, Show cause notices, notices under section 263 on various issues, the compliance of which is enforced to be required to be made in a very short period i.e.,. 2 to 3 days or few hours in many cases. It is very surprising that on hand the department talks about being taxpayer friendly and on the other hand it is taking recourse to such methods of harassment by not providing sufficient time for preparation and compliance which is against the Principles of Natural Justice.

The initial notice in some cases were received long back but the department has now begun to issue show cause letter in large numbers asking for voluminous details which cannot be collected in such short period of time specially when there is bank and Income Tax employees strike on 28^th & 29^th of this month and 26^th and 27^th being public holidays.

It appears that the whole department is in haste to complete the assessments before 31^st Mar 2022 without considering the submission of taxpayer and without giving adequate opportunity of being heard. It appears that assessment have to be completed even if justice is denied to the ordinary taxpayer and under these circumstances when the taxpayer himself trying to meet his financial responsibilities and obligations in the Fag end of the year. The tax practitioner fraternity is trying hard to fulfill their responsibility of filing returns and taking steps to complete it within stipulated time and complying with these notices where bulk information in such a short span of time is asked by the department, is extra burden and chances of defects in the compliance is higher.

The Chamber requests the Finance Ministry and CBDT that suitable steps should be taken so that time barring cases are not disposed off in a hurry without giving adequate opportunity to the taxpayer to be heard. It is also requested that necessary direction may be issued to the lower Authority that adequate time and opportunity should be allowed. The Finance Ministry and CBDT should consider the extending the time for completion of assessment and Disposal of Penalties and Proceeding U/s 263 etc Beyond the prescribed time at least for three months. This year country and taxpayers have faced the third phase of whammy of COVID-19, the changes and updating of income tax portal and huge disruption of financial activities due to various changes in law and procedure.

We also understand the problems faced by the Income Tax Officials on account of above. Many officers have been holding additional charge or AO level (ITO/ACIT/DCIT). So effective working of each of the charge is reduced. It is also noted the staff strength in the offices is not adequate while lacs of assessment, penalties and Sec 263 cases are pending to be completed by 31.03.2022.

In the current scenario the whole emphasis is on faceless scheme and ease of compliance of assesse. The facts discussed above are actually defeating the cause on account of time barring pressure. In such situation the AO is forced to complete the cases in hurried manner, which will severely hurt the reputation of the department, create unwarranted litigation and invite extensive interference and wrath of the judiciary. It will also damage the image of Government led by beloved Prime Minister Shri. Narendra Modi.

Therefore, it is earnestly requested to review the situation immediately and take necessary steps to extened the limitation date for the assessement/Re-assessment, Penalty & Sec 263 Cases getting barred on 31.03.2022 exercising the power vested in the Government of India in the interest of the taxpayer at large.

Thanking You,

Yours sincerely,

(MANISH AGARWAL)
PRESIDENT
Mob. 9412154321

(ANIL VERMA)
PAST PRESIDENT &
CHAIRMAN – INCOME TAX CELL
Mob.9837020178

cc:-

– Shri J.B. Mohapatra, Chairman – CBDT, New Delhi

– Chief Income Tax Commissioner, Kanpur

Download Representation on Indiscriminate notices by the Income Tax Department without allowing reasonable time. Extension of limitation date