TIOL-DDT 488 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
488</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
10 11 2006<br>
Friday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Income
Tax Ombudsman </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income
Tax department proposes to appoint ombudsmen in New Delhi, Mumbai, Chennai,
Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Kanpur, Chandigarh, Bhopal and
Kochi. These ombudsmen will be in the pay scale of Board Member and will be
selected from the Chief Commissioners or similarly ranked officers. He has to
be a serving officer and is eligible to continue till he reaches the age of
63 or for two years (extendable by one year) as ombudsman. Immediate benefit
is 12 more Chief Commissioners are going to get Member level posts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What
is the Ombudsman supposed to do?</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
receive complaints from taxpayers;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
consider such complaints and facilitate their satisfaction or settlement by
agreement, through conciliation and mediation between the Income Tax Department
and the aggrieved parties or by passing an ‘award’ .</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
require the Income Tax Authority complained against or any other related Income
Tax Authority to provide any information or furnish certified copies of any
document relating to the subject matter of the complaint which is or is alleged
to be in its possession; provided that in the event of failure of such authority
to comply with the requisition without any sufficient cause, the Ombudsman
may, if he deems fit, draw the inference that the information, if provided
or copies if furnished, would be unfavourable to the concerned Income Tax
Authority;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d)
suggest remedial measures for redressal of grievances</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e)
report his findings to the Secretary, Department of Revenue, GOI and the Chairman
CBDT for appropriate action against erring officials;</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>His
duties: </strong> </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
to exercise general powers of superintendence and control over his office
and be responsible for the conduct of business in his office;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
to maintain confidentiality of any information or document coming into his
knowledge or possession in the course of discharging his duties and not disclose
such information or document to any person except with the consent of the
person furnishing such information or document; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
to protect individual taxpayer’s rights and reduce taxpayers’ burden;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d)
to identify issues that increase the compliance burden or create problems
for taxpayers, and to bring those issues to the attention of the CBDT and
the Ministry of Finance;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e)
to send a monthly report to the Chairman CBDT and Secretary, Department of
Revenue in the Ministry of Finance recommending appropriate action. The report
shall specially highlight cases where action needs to be taken against erring
Income Tax authorities for their failure to redress the grievance. The report
will be accompanied with primary evidence needed to initiate action against
the delinquent persons;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f)
to furnish a report every year containing a general review of activities of
the office of the Ombudsman during the preceding financial year to the Secretary,
Department of Revenue, Ministry of Finance and the Chairman, CBDT along with
such other information as may be considered necessary by him. In the annual
report, the Ombudsman, on the basis of grievances handled by him, will review
the quality of the working of the Income-tax Department and make recommendations
to improve the tax administration; and</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g)
to compile a list of ‘awards’ passed by it between April and March of each
financial year in respect of every Income Tax Authority Complained Against,
by name, and report it to the controlling Chief Commissioners of the officers
concerned and the Chairman, Central Board of Direct Taxes before the end of
April so that this information can be reflected in the Annual Confidential
Reports of the officers concerned.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What
kind of complaints will the Ombudsman entertain?</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
delay in issue of refunds beyond time limits prescribed by law or under the
relevant instructions issued from time to time by the Central Board of Direct
Taxes;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
sending of envelopes without refund vouchers in cases of refund;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
non adherence to the principle of ‘First Come First Served’ in sending refunds;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d)
non acknowledgement of letters or documents sent to the department;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e)
non up-dating of demand and other registers leading to harassment of assessees;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f)
lack of transparency in identifying cases for scrutiny and non communication
of reasons for selecting the case for scrutiny;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g)
delay in disposing cases of interest waiver;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h)
delay in disposal of rectification applications;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)
delay in giving effect to the appellate orders;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(j)
delay in release of seized books of account and assets, after the proceedings
under the Income-tax Act in respect of the years for which the books of account
or other documents are relevant are completed;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(k)
delay in allotment of permanent account number (PAN);</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(l)
non credit of tax paid, including tax deducted at source;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(m)
non adherence to prescribed working hours by Income Tax officials;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(n)
unwarranted rude behaviour of Income Tax officials with assessees;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(o)
any other matter relating to violation of the administrative instructions
and circulars issued by the Central Board of Direct Taxes in relation to Income-tax
administration.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Great Idea!
Let us hope this will not be another compliance report. And will CBEC follow
suit? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/incometax_Ombudsman.htm">D.O.F.No.A-12026/6/2006-Ad.I</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/incometax_Ombudsman.htm"><u>
Dated: November 6, 2006</u></a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>
<strong><font color="#006600">Customs and Central Excise Revenue cross 1 Lakh
Crores</font></strong></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The customs
and Central Excise Revenue up to October has reached 1.1 Lakh Crores, customs
contributing about 50,000 Crores and Central Excise about 60,000 Crores. Customs
recorded a 32.7% growth while it was 5.8% for excise over the previous year.
Service Tax collections at 16,000 Crores for the first half of the year recorded
a phenomenal 65% growth. But even though the FM may be smiling all his way to
the Bank and Parliament, the excise assessees may be in for a lot of unfriendly
visits from the excise officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Excise
Revenue is not growing as much as they wish it to. For the month of October,
the duty was just 0.8% over October last year. Overanxious officers are sure
to go nuts on revenue drives. Already the squeeze on cenvat credit has started.
In the next few months all kinds of tricks in the trade will be employed to
artificially jack up revenue and fool the FM and the country that excise revenue
has indeed gone up by whatever percentage the FM wanted it to grow. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> If the
FM and the Board can accept for one year the real revenue instead of fabricated
illicitly manufactured revenue, many of the evils of the system=m can be eradicated.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Excise
Notification exempting alcohol</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our understanding
all these days was that there is no Central Excise duty on alcohol fit for human
consumption; it is supposed to be a state subject. In yesterday’s DDT there
was a reference to Notification No.<strong> </strong>34/2006-Central Excise,
Dated: June, 14 2006. The Notification exempts<font color="#663399"> <u>in the
case of hotel or stand alone restaurant, office equipment, professional equipment,
office furniture and consumables, related to its service sector business and
food items and <b>alcoholic beverages</b></u> under the</font></font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Served
from India Scheme.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A friend
wrote in “how can they exempt alcohol when it is not dutiable at all?”. He
also provided the answer. This is a copy and paste from the Customs Notification
No. 92/2004-Cus., dated 10-9-2004, which is identically worded. For Customs,
the exemption is correct as there is customs duty on alcohol but the same would
not apply to Central Excise. Board’s “Copy and Paste” technology usually runs
into trouble! Copying and pasting is okay but there should be a little reading
after pasting and obviously there is no body in the Board to do that.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Monday with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice week end. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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