आयकर विभाग द्वारा नोटबन्दी के दौरान आयकर दाताओं द्वारा जमा किये गये नगदी को उनकी आय में जोड़ कर उच्च दर पर टैक्स लगाने और साथ ही जुर्माने से दंडित करने पर विरोध स्वरूप एक ज्ञापन आल इण्डिया फेडरेशन आफ टैक्स प्रैक्टिशनर्स (AIFTP)नार्थ जोन के चेयरमैन असिम जफर द्वारा सीबीडीटी एवं माननीय प्रधानमन्त्री जी को आज दिनांक 22 Feb 2020 को भेजा गया है...
To,
The Hon'ble Finance Minister
Union Of India
Respected Madam,
Sub. : Memorandum for full stay of demand in case of high pitched assessments-
All India Federation of Tax Practitioners (AIFTP) is the apex body of the tax-practitioners, advocates and chartered accountants with over 8000 members throughout the length and breadth of the country. It also has more than 116 Professional Tax Associations as members. The Federation is divided into five zones in the country for providing active and positive input in tax administration. The Northern Zone of AIFTP covers the areas of J&K, Punjab, Himachal Pradesh, Haryana, Chandigarh, Delhi, Uttarakand and Uttar Pradesh.
The members of the Federation are experiencing some difficulties after the assessments relating to A.Y.2017-18 and also reassessment cases relating to cash deposits in banks. It is seen that after demonetization on 8thNovember, 2016 huge cash was deposited in banks and the assessments relating to such cases have been completed by December, 2019. In most of the cases high-pitched assessments have been made and section 115BBE has also been invoked to levy tax @ 77.25% plus interest on assessed income. In most of the cases even where the amounts deposited are properly routed through books of accounts have all been added u/s. 68, 69A, 69B, 69C & 69D resulting in demand beyond comprehension of the assessees. Some assessments have also been made due to ignorance of assesses, lack of knowledge about the notices sent to the assessees through departmental system and also due to poor representations before the Assessing Officers. Such assessments have resulted into huge demands and with the levy of interest u/s. 234B & 234C the demand created is more than the assessments made. In many cases the demand is even much more than the total capital of the assessees and any effort to realize such demands would inevitable result in complete destruction of assesses business and means of livelihood. This will also have a deterrent effect on voluntary tax compliance and ultimately the revenue may also loose its assesses.
The CBDT has issued guidelines from time to time for recovery of outstanding demands, the latest being Office Memorandum (F. No. 404/72/93-ITCC) dated 31.07.2017 where the stay of demand has been directed to be granted where 20% of the disputed demand is paid. It is also clearly stated therein that this condition can be diluted or waived in case of deserving cases. In the present state of affairs where the demand is almost equal to or more than the disputed additions, the case is squarely covered under the category of high pitched assessment. In order to smoothly run the tax administration process and rationale in collection of demand it is necessary that such high demands should not be insisted upon. Some suggestions in this regards are as follows:-
1) The stay applications should be considered sympathetically on merits and should not be mechanically disposed off with directions to deposit 20% of the demand.
2) There should be no coercive actions or bank attachments for the reason that the assessee's business must be kept alive so that they remain tax payers and the department does not loose its potential tax payers.
3) In case where it appears necessary to use coercive actions and bank attachments proper opportunity should be given to the assessees.
4) In cases where the Assessing Officers does not feel inclined to deviate from 20% formula then he should himself forward the stay application to the Pr.CIT for the appropriate directions.
5) Reference is also invited to the declaration made by the Hon'ble Finance Minister on the floor of the parliament that in case of the assessments are made at a figure doubled of the returned income the assessments will be treated to be high pitched. Presently, majority of assessments made fall in this category and so it is necessary that a practical and sympathetic approach must be taken by the department to meet the ends of the justice.
6) It is also desirable that such high pitched assessments must meet finality through appellate process as soon as possible and hence necessary instructions must be issued to the CIT(Appeals) to take up the high pitched assessments on priority basis.
Hope the submissions meet your favourable consideration and appropriate decision is taken to meet the ends of justice.
Yours faithfully,
For All India Federation of Tax Practitioners, Northern Zone
ASIM ZAFAR
Chairman, AIFTP-NZ
Copy to:
1) Hon'ble Chairman , Central Board of Direct Taxes , New Delhi
2) Hon'ble Prime Minister of India , Shri Narendra Modi Ji , being Member of Parliament from Varanasi
3) Hon'ble Pr Chief Commissioner of Income Tax(CCA), UP(East)/Pr CCITs/CCITs/Pr CITs of Northern Zone