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May 9, 2020

Tax officials shall not issue scrutiny notices to taxpayers as per CBDT Orders

by facelesscompliance in Compliance Law

Tax officials shall not issue scrutiny notices to taxpayers as per CBDT Orders

CBDT directives are part of the interim action plan for the first quarter (April-June) prepared by the direct tax board. It highlights certain areas which need immediate attention and preparedness until normalcy returns.

The CBDT action comes at a time when the tax department faced widespread criticism on a report prepared by a group of IRS officers indicating increase in revenue collection by increase in tax rates. It had created panic and tax policy uncertainty at a time when India is already going through a difficult economic situation.

Identification and preparedness regarding the issuance of notice under Section 148, which deals with income escaping and return filing in all eligible cases, should be done by June 30. However, these notices are to be issued only after getting fresh communication from the board in this regard

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A new system had already been put in place to make officials accountable for their communication with assessees. CBDT has asked officials to be prepared for tax demands in cases of international taxation, tax deduction at source and exemption-related charges. The board wants the department to examine all pending demands, according to permanent account number (PAN) and assessment years.

Centralization in all eligible cases (by passing order u/s 127) where search took place in FY 2019 a in the Central charges. However, inter-city transfer of cases should be kept on hold. Decentralization of cases to be completed as per existing instructions by the Central charges.

Demand Related Work: (including International Taxation, Central, Exemption and TDS Charges

Preparedness for disposal of applications u/s 154 filed by the assessee and giving appeal effects in all eligible cases. Checking of all demands PAN -wise and Year-wise from Systems, AST/TMS or Manual demand wherever remaining and removal of all duplicate demands. Reconciliation of brought forward cases (as on 01.04.2020) of TDS reported by AINs with payment through 01,TAS by State AGs based on report available on TRACES portal for TDS units

Trust and Exempt Institution

Cases falling under the jurisdiction of CCIT (Exemptions) which are still lying at incorrect jurisdictions to be identified and transferred to respective CsIT (Exemptions). However, inter-city transfer of cases should be kept on hold. Disposal of all applications for grant of registration under section 12AA or 80G of the Income- tax Act, 1961 received up to 31st March, 2020. Disposal of all petitions filed up to 31′ March, 2020 seeking condo nation of delay in filing Form 10 & 10B. Completion of consequential rectification by Assessing Officers in all cases wherein condo nation has been allowed by the CIT for delay in filing Form 10 or 10B

Other Orders

  1. Completion of all the inspection/reviews for FY 2019-20.
  2. Disposal of at-least 25% compounding applications pending as on 01.04.2020.
  3. The annual exercise of updating Asset Register (as on 31, 03.2020)
  4. Identification and withdrawal of non-prosecutable appeals by the collegium of CCsIT/DGsIT.
  5. Preparation and updating of PD Account in ITBA by Pr. CFI’s for all transactions up to 31.03.2020 and onwards.
  6. Disposal of all CPGRAMS grievance older than 30 days.
  7. All rent related proposals (revision of rent or new lease agreements) to be submitted after completing all formalities to the Board.
  8. Holding of all DPCs at all grades (Group-B & C) within the cadre control of the Pr. CCIT and issue of orders.

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