CBDT appoints Committee to tone up litigation process
CBDT has appointed a Committee of 5 Commissioners headed by Rani S Nair, Chief Commissioner, Ahmedabad as Chairperson to appraise the efficacy of existing dispute resolution forums of CsIT (A) & ITAT and to suggest steps to reduce litigation before these forums.
The Committee shall submit its report within 8 weeks and it has a heavy agenda:
(i) To carry out detailed analysis of appellate orders and assessment orders, on various aspects and recommend steps to reduce litigation before the CIT (A).
(ii) To study the efficacy of existing system of filing appeals to the ITAT by the Department and suggest steps to reduce litigation before the ITAT.
CBDT wants the Committee to follow the following guidelines:
(i) Sample should be drawn from the orders passed by the 1TAT during the month of June, September, December and March of the FY 2013-14.
(ii) (a) Approximately 200 orders should be selected for study from each of the 8 major cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bangalore.
(ii) (b) Approximately 150 orders should be selected for study from each of the stations: Chandigarh, Jaipur, Indore, Lucknow and Kochi.
(iii) As far as possible, orders in cases of corporate and non-corporate assessees should be selected in equal numbers, particularly in Metro charges whereas in non-metro, sample of non-corporate assessees may be larger. It must also be ensured that some orders in search cases are in select basket.
(iv) As number of appeals filed by the Department before ITAT is much larger than appeals filed by the assessee, the order in appeals filed by the Department and by the assessee may be selected in the ratio of 2:1.
The Board wants the Committee to analyse the following aspects:
(i) Assessment Orders: Nature of additions made in general, guidance of supervisory authorities, sustainability of additions in appeal, quality of addition made and average tax effect of additions.
(ii) Orders of CIT (A): Whether relief allowed is based on proper marshalling of facts and legal position. The decisions are also to be analysed in the light of the order of the ITAT.
(iii) Authorization by CIT: The filing of second appeal is to be examined as to whether the same is filed mechanically by applying the monetary limits or on sound grounds after examining the merits of each order.
(iv) The success rate of appeals filed by the Department / Assessee before the ITAT to be analysed.
Is it possible to undertake such a great study in 8 weeks? And doesn't the Board already know the answers?
CBDT F. No. 279/Misc./M-84/2014-(ITJ), Dated: July 17 2014.