CCITs can take decisions on contesting tribunal rulings

The income tax (I-T) department has given chief commissioners of income tax (CCIT) the power to decide whether or not to appeal against a tribunal decision to the high court without having to consult their peers or superiors. The move is expected to cut delays in decision-making and allow these officers to promptly comply with tribunal rulings that don’t necessitate the filing of appeals.

So far, chief commissioners had to discuss the issue with their peers in zones with more than one chief commissioner and in case of any difference of opinion, with the principal chief commissioner concerned as well. The department has clarified to field officers that in cases where a chief commissioner decides not to file an appeal, that decision is not required to be referred to a panel of chief commissioners, sources said. This decision amends an internal protocol that has been in force for over 10 years.

Direct tax cases are usually considered by officials for filing appeals at the high court if the outstanding amount involved exceeds R10 lakh. There are about 7,000 direct tax related disputes pending in various high courts involving an amount of R18,000 crore, as per official data.

The move to give more discretion to chief commissioners on the matter is part of a series of steps taken by the Central Board of Direct Taxes (CBDT), the apex direct tax policymaking body, to make tax administration non-adversarial.

Recently, it decided to rework the annual appraisal system of field officers, laying emphasis on the quality and effectiveness of income assessments made, rather than on the quantum of tax demanded. The intention is to encourage officers to make error-free and well-reasoned tax demands that do not get struck down by courts.For the department, which has a target to collect R7.97 lakh crore in 2015-16 — an increase of 14.6% from the receipts a year ago — the mandate is to reduce litigation and be gentle on tax payers in general, while being tough on evaders who are identified after thorough non-invasive intelligence gathering and investigation.

New rules

I-T department has given chief commissioners of income tax (CCIT) power to decide whether or not to appeal against a tribunal decision to the HC without having to consult peers, superiors.

Move expected to cut delays in decision-making, allow CCITs to promptly comply with tribunal rulings that don’t necessitate filing of appeals.

Decision amends internal protocol that has been in force for over 10 years.