TMI Blog2022 (5) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... still persisting due to which grievances are being raised by the taxpayers. Such grievances not only reflect harassment of taxpayers but also lead to generation of unproductive work for Department as well as Appellate Authorities. Under the aforesaid instructions dated 09.11.2015, Local Committees were constituted to resolve quickly the taxpayers' grievances on account of high-pitched and unreasonable additions made by the Assessing Authorities. But it appears that tendency to frame high-pitched and unreasonable assessment orders is still persisting as also acknowledged by the respondents which resulted in issuance of instructions/ Circular dated 23.04.2022 under Section 119 of the Income Tax Act, 1961 so as to give it statutory backing. This Court is also frequently coming across the writ petitions in which impugned orders reflect nor observance of principles of natural justice and even reply submitted by assessee are not being considered by Assessing Officers under the faceless regime as well as non-faceless regime under the Act, 1961. Tax payers are one of the important pillars of economy of the country. Their harassment not only causes jolt to the economy of the coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in English). - Writ Tax No. - 465 of 2022 - - - Dated:- 19-5-2022 - Hon'ble Surya Prakash Kesarwani And Hon'ble Jayant Banerji JJ. For the Petitioner : Ashish Bansal For the Respondent : Gaurav Mahajan, Arvind Kumar Goswami ORDER 1. Heard Sri Ashish Bansal, learned counsel for the petitioner, Sri S.P. Singh, learned Additional Solicitor General of India assisted by Sri Arvind Kumar Goswami, learned Central Government Standing Counsel and Sri Ashish Agarwal, learned Standing Counsel for the respondent-Income Tax Department. 2. A personal affidavit of respondent no.1, namely, Sri Tarun Bajaj, Revenue Secretary to the Government of India, New Delhi dated 19.5.2022 has been filed today which is taken on record. 3. Learned Additional Solicitor General has referred to paragraphs 9 and 10 of the aforesaid personal affidavit dated 19.5.2022 and stated that the date of circular in paragraph 10 has been wrongly mentioned as 25.4.2022 instead 23.4.2022 and copy of said circular dated 23.4.2022 has already been filed alongwith the personal affidavit dated 3.5.2022. He further states that the Government s stand stated in paragraph 10 of the personal affidav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo conflicting reassessment orders have been passed by the National Faceless Assessment Centre in respect of two co-owners of the same land, we direct the newly impleaded respondent no.4 to look into the matter and file his personal affidavit explaining the state of affairs and the steps being taken by the Government. 6. In response, a personal affidavit dated 03.05.2019 on behalf of Union of India has been filed by Sri Tarun Bajaj, Revenue Secretary to the Government of India who has stated in paragraph-11 of the affidavit, as under: 11. The petitioner has an alternate administrative remedy in form of approaching the Local Committee for grievance settlement instead of approaching the Court in writ proceedings. Local committee has been empowered to deal with Taxpayer's Grievances from High-Pitched Scrutiny Assessment upon receipt of grievances, related to High-pitched Scrutiny assessments completed either under the Faceless Assessment regime or non-faceless Assessment regime and ascertain whether there is a prima-facie case of High-pitched Assessment, non-observance of principles of natural justice, non-application of mind or gross negligence of Assessing Officer/Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Pr.CCIT(Exemption) and Pr.CCIT(International Taxation). (a) The Local Committee shall consist of 3 members of Pr.CIT/CIT rank. To have a perspective of processes involved in Faceless Assessment process, Local Committees so constituted in each Pr. CCIT region and Pr.CCIT(Exemption) shall have one Pr.CIT (AU) of the region. The Local Committee constituted under the Pr.CCIT(International Taxation) need not have a Pr.CIT(AU) as a member, as the assessments under the International Taxation charges are outside the purview of Faceless Assessment regime. (b) The other members may be selected from the pool of officers posted as Pr.CsIT/Pr. CIT(Central)/CIT(Judicial)/ CIT(Audit)/CsIT(DR), ITAT of the respective Pr.CCIT region. For the Local Committees constituted under the Pr.CCIT(Exemption) and Pr.CCIT(International Taxation), members may be selected from their respective pool of officers. (c) The senior most Member would be designated as the Chairperson of the Committee. (d) The Addl. CIT (Headquarters) to such Pr. CCIT would act as a Member - Secretary to the Local Committee. (ii) The Local Committees so constituted may co-opt other members, if necessary. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. (iv) The Local Committee may call for the relevant assessment records to peruse from the Jurisdictional Pr.CIT concerned. (vi) The Local Committee may seek inputs from the Directorate of Systems (ITBA/efiling/ CPC-ITR, CPC-TDS, etc.), on Systems-related issues emanating from the grievance/matter under consideration, if considered necessary. (vii) Local Committee would ascertain whether the addition(s) made in assessment order is/are not backed by any sound reason or logic, the provisions of law have grossly been misinterpreted or obvious and well-established facts on records have outrightly been ignored. The Committee would also take into consideration whether principles of natural justice have been followed by the Assessing Officer/Assessment Unit. Thereafter, Local Committee shall submit a report treating the order as High-Pitched/Not High-pitched, along with the reasons, to the Pr. CCIT concerned. (viii) The Local Committee shall endeavor to dispose of each grievance petition within two months from the end of the month in which such petition is received by it. (ix) Member-Secretary will ensure that the meetings of the Local Committees are held at lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs with a copy to Member (IT R), CBDT. 5. This issues with the approval of Chairman, CBDT. Enclosure: As above (Ravinder Maini) (Director)(ITA-II), CBDT. Copy to: 1) The Chairperson, CBDT and all Members, CBDT 2) PS to the Secretary (Revenue) 3) All JS/CsIT, CBDT 4) ITCC division, CBDT 5) Jt. CIT, Data base Cell for uploading on the Department Website: www.irsofficersonline.gov.in 6) O/o Pr. DGIT (Systems) for uploading on Official Website: www.incometax.gov.in 7) CIT (Media Coordinator), CBDT 8) Guard file (Ravinder Maini) (Director)(ITA-II), CBDT. Annexure: Quarterly Report on functioning of Local Committees to deal with taxpayers grievances from High-Pitched Scrutiny Assessments Date: Quarter 1/2/3/4, Year____ Number of grievances brought forward by the Local Committees from the last quarter Number of grievances received by the Local Committee during the quarter Number of grievances disposed of by the Local Committee during the quarter Number of grievances pending with the Local Committee at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payers, the Central Board of Direct Taxes issued instruction F. No. 225/101/2021/-ITA-II, dt. 25/04/22, for dealing with taxpayers grievances. The local committee ascertains whether the additions made in the assessment order is not backed by any sound reasons or logic, provisions of law have been grossly misinterpreted or obvious and well-established facts on record have been ignored outrightly. The said instruction also provides for initiation of suitable administrative action against the erring officer in case where assessments are found by the local committee to be high-pitched or where there is nonobservance of principles of natural justice, non- application of mind or gross negligence of assessing officer/ Assessment Unit. Also, the findings of the local committee are considered for revisiting SOP/policy on faceless assessment and addressing systems related issues. 12. The Petitioner has statutory remedy under the Income Tax Act, 1961 which he may avail by filing revision petition before the jurisdictional Principal Commissioner of Income Tax under section 264 or filing appeal before the Commissioner of Income Tax (Appeals) under section 250. The Petitioner has also filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns are disposed off. 14. In view of the discussions made above, particularly considering the instructions dated 23.04.2022 issued by the CBDT in exercise of powers conferred under Section 119 of the Act, 1961 and the statement of the respondent No.1 made in para-10 of the personal affidavit filed on 19.05.2022, the following directions in the nature of mandamus are issued:- (i) The respondent No.1 shall ensure that copies of instructions F.No.225/101/2021-ITA-II, Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes dated 23rd April, 2022 is circulated within a month from today to Tax Bar Associations at District Level, State Level and National Level for information along with the following contents of paragraph-10 of the personal affidavit dated 19.05.2022:- The said instruction also provides for initiation of suitable administrative action against the erring officer in case where assessments are found by the local committee to be high-pitched or where there is non-observance of principles of natural justice, non-application of mind or gross negligence of assessing officer/ Assessment Unit. (ii) The respondent No.1 shall ens ..... X X X X Extracts X X X X X X X X Extracts X X X X
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