National Chamber of Industries & Commerce, U.P. has made a representation on Problems On Income Tax Portal , Faceless Assessment & Appeals to Hon’ble Chief Commissioner of Income Tax,(OSD) Agra. They highlighted issued related to Glitches in the New Income Tax Portal, Faceless Assessments/Penalty, Faceless Appeals, Processing of Returns, Dedicated Grievance MAIL id and helpline number etc. Full text of the representation is as follows:-

NATIONAL CHAMBER OF INDUSTRIES & COMMERCE, U.P.

NCIC/24/2021-22/ | Dated: 14th December 2021

To,
Smt. Nirmala Sitharamanji,
Hon’ble Union Minister for Finance
Govt.Of India
15 Safdarjung Road
New Delhi

Subject- Memorandum In Respect Of Problems On Income Tax Portal, Faceless Assessment & Appeals

Hon’ble Sir,

This is to bring to your kind notice that National Chamber of Industries and Commerce, UP, Agra is an apex federal and registered body in Western Uttar Pradesh since 1949 (i.e. 73 years old), which works in the interest of industry and trade. More than approx. 1600 reputed industrial and commercial establishments are associated with this institution as members, which are located in Agra and adjoining districts/cities. About 25 associations are also attached to this Chamber as affiliated organizations. The members of this Chamber who are experts in their field with deep experience are nominated by the State and Central Government in various advisory committees and the suggestions made by them are considered by the Government in policy formulation.

We take this opportunity to submit before You some problems regularly being faced regarding New Income Tax Portal, which was launched on 7th June,2021 and Faceless assessment/appeals due to which taxpayers are confronting compliance issues and inability to file Income Tax Returns. The issues are summarized as below:-

1) Glitches in the New Income Tax Portal:-

a) The Portal is still very slow. It takes a lot of time to login in the site and to upload various returns/forms in it.Many times even login also does not happens.

b) We are not able to register new assessee on the site.It gets rejected.

c) DSC (Digital Signatures) are not getting registered smoothly.

Sometimes the Portal asks for change in PIN, Sometimes it says PAN mismatch, Sometimes server error is shown. Even when the DSC is registered, while using the DSC for verification, a lot of problem is encountered especially while using DSC of Karta/Director/Partner etc.

d) OTPs are not coming on mobile phones. Even if they come, they come after they are expired.

e) Tax Audit Report are not getting uploaded smoothly.The assessee’s are not able to accept the uploaded tax audit report, as a result the subsequent filing of returns can also not happen.

f) UDIN- Unique Document Identification Number, which CA’s have to quote while issuing various forms/reports are not getting updated on the portal

g) Data Mismatch /overlapping of data is happening in the tax audit reports/returns filed and downloaded.

h) Tax audit report is not getting properly autoplated

i) In some cases attachments in Form 35 are not opening post submissions.

j) Validation of bank accounts is not happening smoothly, as a result refunds are stuck

k) Outstanding Demand is not shown correctly

l) There is no tab available on portal regarding rectification to be filed against CIT(appeals) order

m) Various FORMS like 10IC, 29B, 10B etc are either not available and if available than they are not getting filed smoothly.

n) Old intimations are not getting downloaded

2) Faceless Assessments/Penalty:-

a) Initially when the cases are taken up for scrutiny than notices are issued, requisite replies are filed. Then for months no notice is issued by the department. Close to the period of limitation big questionnaires/show cause notices are issued, giving just 2-3 days to reply. The assesse cannot give replies upto the satisfaction in such a small span of time, which results in high –pitched assessments made.

b) Many assessment orders have been passed without giving draft assessment orders.

c) In Penalty cases, repetitive notices are being issued even when compliances of earlier notices have been done by assesse.

d) Many times assesse get notices on mails after the expiry of the time period given to file response.

e) In many cases assessment orders are passed before the expiry of time given in the notice provided to assesse to file his reply, irrespective of the fact that the assesse has filed his reply or not.

3) Faceless Appeals:-

a) In many cases submissions are filed since months and no order have been passed

b) In many cases,repetitive notices are being issued even when compliances of earlier notices have been done by assesse.

c) Jurisdictional High Court decisions should be considered while passing an appeal order. For e.g. Many ESI/PF disallowances u/s 43B have been upheld by the NFAC, even when jurisdictional High Court and jurisdictional ITAT is in favour of assesse.

d) As per the department’s own stand in Hon’ble SC, they are bringing modification in faceless appeal system.The same should be implemented as early as possible. Till that time demand should not be pressed by department.

e) Personal hearing opportunity if asked by the appellant should be provided without discretion.

f) There is no mechanism for request for early hearing of appeal

g) The orders are passed without going through the whole case record e.g. In one of the case, the appeal was filed late with a prayer for condonation of delay, the appeal was admitted by an order passed by NFAC, subsequently the appeal has been dismissed on the ground of not granting condonation of delay, without discussing on merits.

h) In few cases orders of appeal have been filed before the expiry of time period given to file the response.

4) Processing of Returns :-

a) CPC is not processing the returns correctly. The technical irregularities in the Portal are creating absurd demands, which is resulting in unnecessary litigation.

b) If possible, some human interference should be made on some issues which are repetitively happening or where there is a huge deviation between returned income and processed income.

5)  Dedicated Grievance MAIL id and helpline number

a) Toll free number does not connect to the telecaller even after punching correct PAN and Date of Birth.

b) The dedicated mail ids made for grievances and chat numbers don’t provide any concrete solution to the problems faced.

6) FORM 5 Vivad Se Vishwas –  FORM 5 is pending for issuance since long.

However, so far the New Income Tax Portal has disappointed the tax payers as they have been facing numerous bugs and glitches. The issues range from long logging in time to inability to make compliances and file Income tax Returns. The pandemic has also added to the miseries of the taxpayers where the taxpayer is financially and medically downtrodden. Since the due date of filing of Income tax Returns is approaching and the Income Tax Portal is still not functioning properly, it is requested that the due date of corporate and non-corporate assessees shall be extended till 31.03.2022

We have full confidence that Your Good Self would consider our aforesaid points.

Thanking you,

Yours sincerely,

(MANISH AGARWAL)
PRESIDENT
(ANIL VERMA)
CHAIRMAN – INCOME
TAX CELL
(CA – PRARTHANA JALAN)
MEMBER – INCOME
TAX CELL

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2 Comments

  1. Surendra Mehta , Advocate, Jodhpur says:

    Really you have raised the voice of aii tax practitioners. In one case appeal was dismissed only on the ground that Fom No. 35, statements of facts, grounds of appeal, copy of assessment order and original demand notice have not filed before NFLAC. CIT(A) also blamed that no application for condonation of delay was filed. The factual position is diffrent. The appellate has filed appeal with in 23 days of order of AO therefore, no question of application for dondonation of delay arises.The appeal in form No. 35, statements of facts, grounds of appeal, copy of assessment order, demand notice etc were already been filed manually in the year 2016. How appeal was fixed when as per CIT(A) NFLAC appeal was not filed.
    The CIT(A) should see his house first then to blame taxpayers. There must be accountability of appellate authority for casually dismissing the appeal by blaming that not filing necessary documents whereas all documents have already been filed. .

  2. Surendra Mehta , Advocate, Jodhpur says:

    Really you have raised the voice of aii tax practitioners. In one case appeal was dismissed only on the ground that Fom No. 35, statements of facts, grounds of appeal, copy of assessment order and original demand notice have not filed before NFLAC. CIT(A) also blamed that no application for condonation of delay was filed. The factual position is diffrent. The appellate has filed appeal with in 23 days of order of AO therefore, no question of application for dondonation of delay arises.The appeal in form No. 35, statements of facts, grounds of appeal, copy of assessment order, demand notice etc were already been filed manually in the year 2016. How appeal was fixed when as per CIT(A) NFLAC appeal was not filed.
    The CIT(A) should see his house first then to blame taxpayers. There must be accountability of appellate authority for casually dismissing the appeal by blaming that not filing necessary documents whereas all documents have already been filed.

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