Delay in receipt of replies from AG - CBDT calls for information
DURING the Chief Commissioners Conference (of Income Tax) some of the Chief Commissioners mentioned that due to non-receipt of replies from the AG regarding acceptance of replies of the Department on the audit objections or otherwise, remedial action is being taken and subsequently when the communication accepting the position of the Department is received such remedial action is to be dropped and in some cases infructuous demands were created on completion of assessments reopened on account of pendency of audit objections.
So, the field officers are requested to furnish the details, including number of cases in which remedial action had to be initiated due to non-receipt of reply from AG and subsequently the proceedings had to be dropped on receipt of reply from AG accepting the Department's reply and of cases wherein assessment proceedings were completed in such cases resulting in infructuous demand, for taking up the matter with the AG.
In Central Excise and Customs, there are instructions to issue Show Cause Notice even if the AG objections are contested by the department. This lead to issuing some funny notices to the assessees asking them to show cause as to why an abatement extended under Section 4A by the Government should not be denied to them, because AG felt that the abatement given by the Government was on higher side! And by invoking extended period of limitation for suppression!
CBDT F.No. 246/94/2012 dated September 12, 2012.