Further steps towards a non-adversarial tax regime - appeal before High Court
ON several occasions the Finance Minister has emphasised the need for furthering a non-adversarial tax regime. A non-adversarial tax regime cannot be achieved without concerted endeavour at each level, especially at levels where the public interaction is high. Though the Central Board of Direct Taxes (CBDT) has issued instructions from time to time on some of these issues, there is a need for consolidation of earlier instructions and issuance of further directions in this regard. Accordingly, CBDT had issued guidelines for achieving such objective through O.M in F.No.279/Misc./52/2014-(ITJ), dated 07.11.2014. [DDT 2471 10.11.2014]
In para x of the above instructions, it was stated:
x. A review of the proposals for filing SLPs reveals that in most of the cases, the decision to file a reference before the High Court itself was not in order. No substantial question of law existed or the question of law was not correctly drafted. Hence, in stations having more than one Chief Commissioner of Income-tax (CCIT) the decision to file a reference before the High Court will be taken by two CCsIT including the CCIT in whose jurisdiction the matter lies. The Principal CCIT/ CCIT (CCA) concerned may issue directions for pairing of CCsIT for this purpose. In case of disagreement between the two CCsIT, the matter will be referred to the Principal CCIT/ CCIT (CCA). For references in the jurisdiction of the Principal CCIT/ CCIT (CCA), in case of disagreement, the matter will be referred to the CCIT-II.
As a further step, the CBDT has now decided that such cases, where decision to "not file" appeal before High Court/s has been proposed/taken by the CCIT concerned, will not be referred to the panel of CCsIT.
In the CBEC, the Commissioner decides whether to appeal or not and most of the Commissioners liberally contribute their mite to clogging the High Courts.
CBDT Letter in F. No. 279/Misc 52/2014-ITJ., Dated: June 17, 2015