Extract of Press Release issued jointly by Bombay Chartered Accountants’ Society, Chartered Accountants Association, Ahmedabad, Karnataka State Chartered Accountants’ Association and Lucknow Chartered Accountants’ Society on recent CBDT Chairman instruction in which he instructed all Pr. CITs across India to take “all possible actions” with respect to recovery of arrears and current demand to achieve shortfall of 14.9% in the targeted revenue collection for current financial year.
28th March, 2019
PRESS RELEASE ISSUED IN THE INTEREST OF TAX PAYERS OF THE COUNTRY
We have noted the internal instruction No. F.NO. D.01380/02/2018-IT(B) Dt. 26th March, 2019 issued by Member, CBDT and Special Secretary to Government of India, Instructing all Pr. CITs across India to take “all possible actions” with respect to recovery of arrears and current demand to achieve shortfall of 14.9% in the targeted revenue collection for current financial year.
This kind of an instruction causes a great deal of concern in the minds of tax payers as it is bound to create unrealistic pressure on the tax officers on the field to recover taxes and that too within a few days before the year ends. Such pressures invariably end up in unreasonable and harsh measures being taken to the detriment of tax payers. Such a situation would be In sharp contrast to the stated motto of the government of ushering in a tax payer friendly regime.
There are thousands of cases across India where demands could have been raised on account of any or all of the following reasons:
(i) Mismatch in credit of TDS as per Form 26AS and as per Income tax Portal for various valid reasons;
(ii) Pending disposal of rectification applications mainly for giving effect to favourable orders of CIT(A) and ITAT.
(iii) Non Intimation of manual rectification carried out by Assessing Officer to CPC.
In a large number of cases, the demands are disputed in appeal and the concerned tax payers have a very high chance of succeeding in the appeals.
In this background, we wish to request the Honourable Finance Minister and the Honourable Prime Minister to instruct the CBDT and the ground level officers of the income-tax department to not take any action which is not In the larger interest of the tax paying community. If at all recovery measures are to be adopted, they should be done after following the due process of law.
Bombay Chartered Accountants’ Society
CA. Chintan M. Doshi
Chartered Accountants Association, Ahmedabad
Chartered Accountants Association Surat
Karnataka State Chartered Accountants’ Association
R L Bajpai
Lucknow Chartered Accountants’ Society