Tax officers to raise only specific queries in scrutiny: Adhia

December 30, 2015

New Delhi, Dec 30: Seeking to eliminate corruption and promote ease of doing business, the revenue department has asked field offices only to raise specific queries in income tax assessment cases picked up for scrutiny.adhia

Issuing comprehensive norms for scrutiny, the Central Board of Direct Taxes (CBDT) said questionnaires on specific issues should be sent to assessees so that there is no waste of man-hour and unnecessary visits to tax department are avoided.

"We are trying to evolve a system where the interface between the assessee and tax officials is minimum. This will also help in eliminating corruption and reducing harassment of of honest tax payers," Revenue Secretary Hasmukh Adhia told PTI.

Under the new dispensation, he said, the focus of the department would be on e-scrutiny and the assessees will not have to queue up before tax offices without knowing what is required from them.

As per the instructions, tax officials should expeditiously complete in a certain number of hearings the case which has been taken up for limited scrutiny.

These initiatives form part of the drive to make the system more transparent and tax payer friendly, Adhia said adding, "I was taken aback to know that tax officials would summon assesses without raising any specific query".

Issuing the instruction, CBDT said that while issuing the first notice, the Assessment Officers (AOs) do not convey to assessees the specific compliance requirement like production of accounts and furnishing of documents.

As per CBDT instructions, tax officials should complete the scrutiny expeditiously wherein the amount involved is less than Rs 5 lakh.

"In cases selected for scrutiny, it should be the endeavour of the AO that the initial notice issued under Section 143(2) of I-T Act accompany a notice...along with the questionnaire containing details of specific document/ information/evidence that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective cases," CBDT said.

Nangia & Co Managing Partner Rakesh Nangia said: "This shall deter AOs from asking roving and general questions, causing unnecessary fear in minds of innocent taxpayers."

The CBDT instruction said further that since taxpayers are required to comply with the statutory notice issued by the AO, they remain "clueless" about the information required to be submitted.

Besides, it added, that their "appearance before the AO does not serve any fruitful purpose except recording of their presence. This causes undue hardships to taxpayers and unnecessary wastage of their time".

"Since CASS (Computer Assisted Scrutiny Selection) cycles are proposed to be run well in advance now, sufficient time shall be available with the AO to go through the returns of income which have been selected for scrutiny and identify the issues which require examination," it said.

With the objective of providing better taxpayer services, improving ease of doing business and reducing the burden of compliance on the taxpayer, CBDT has taken a number of decisions in the recent past.

"With a non-adversarial approach on minds of our policymakers, it is time to bid adieu to unnecessary troubles and harassment of taxpayers," Nangia added.

CBDT further said: "The questionnaire in the case of limited scrutiny cases shall remain confined only to the specific reasons/issues for which case has been picked up for scrutiny. Further the scope of enquiry shall be restricted to the limited scrutiny issues."

However, it added, if it comes to the notice of the AO that the potential escapement of income exceeds Rs 5 lakh or Rs 10 lakh in metro cities, the cases could be taken up for 'complete scrutiny', but only with the approval of Principal CIT or the concerned CIT.

In a separate circular, CBDT said that electronic filing of appeals is being made mandatory for those who are required to file their income tax returns electronically.

"The existing Form 35 for filing of first appeal is being substituted by a new Form. The new format for filing of appeals is more structured, objective, systematic, and aligned with the current provisions of the Income-Tax Act," a CBDT statement said.

Electronic filing of appeal will remove human interface, reduce paperwork and decrease the transaction cost for the taxpayer, it said, adding that it would ensure consistent and error free service as validations will be inbuilt resulting in fewer deficient appeals.

Online filing will also facilitate fixation of hearing of appeals electronically.

"With these changes, the burden of compliance on the taxpayers in appellate proceedings will be significantly reduced," CBDT added.

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News Network
January 28,2020

Jan 28: After Union minister Anurag Thakur, on Tuesday, BJP MP Parvesh Verma has stoked a controversy by saying that "Shaheen Bagh protesters will enter houses and rape sisters, daughters." The BJP MP even went on to say that if BJP is voted to power in Delhi, they "will clear Shaheen Bagh protest within an hour."

"If the BJP comes to power in Delhi on February 11, we will clear Shaheen Bagh of all protests and protesters within one hour. Not a single person will be visible," Parvesh Verma said during a meeting at Vikaspuri assembly constituency.

"Lakhs of people gather there [Shaheen Bagh]. People of Delhi will have to think and take a decision. They will enter your houses, rape your sisters and daughters, kill them. There's time today, Modi ji & Amit Shah won't come to save you tomorrow..." the BJP MP told news agency ANI.

"If our government is formed, then give me just a month after February 11, and I will remove all mosques built on government land in my Lok Sabha constituency," the BJP parliamentarian added.

Well, these statements didn't go down well with the netizens, who took to Twitter to express what they felt about the BJP leader's comments. A user wrote, "This is pure, unadulterated hate speech." While other user said, "Only when you thought BJP couldn't stoop any lower."

Earlier, on Monday, BJP leader and Union Minister Anurag Thakur triggered a row after he led the crowd to raise an incendiary slogan that "traitors should be shot". At the rally, Thakur, the Minister of State (MoS) for Finance, shouted: "desh ke gaddaron ko" to which the crowd responded, "goli maro saalo ko" (shoot down the traitors).

Addressing the meeting in support of BJP candidate from Rithala, Manish Chaudhary, Thakur raised the pitch of nationalism as he linked opposition parties with anti-CAA protests in Shaheen Bagh and with alleged anti-India slogans, and then asked the crowd to raise the controversial slogan.

For more than a month, over 200 women have been joined by hundreds of others every day at South East Delhi's Shaheen Bagh at a sit-in protest against the CAA which promises citizenship to only non-Muslim refugees from three neighbouring countries.

Protests have been ongoing in different parts of the country against the amended Citizenship Act (CAA) which grants citizenship to Hindus, Sikhs, Jains, Parsis, Buddhists and Christians fleeing religious persecution from Pakistan, Afghanistan, and Bangladesh if they entered India on or before December 31, 2014.

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News Network
January 14,2020

Chennai/New Delhi, Jan 14: India's annual electricity demand in 2019 grew at its slowest pace in six years with December marking a fifth straight month of decline, government data showed, amid a broader economic slowdown that led to a drop in sales of everything from cars to cookies and also to factories cutting jobs.

Electricity demand is seen as an important indicator of industrial output in the country and a sustained decline could mean a further slowdown in the economy.

India's power demand grew at 1.1% in 2019, data from the Central Electricity Authority showed, the slowest pace of growth since a 1% uptick seen in 2013. The power demand growth slowdown in 2013 was preceded by three strong years of consumption growth of 8% or more.

In December, the country's power demand fell 0.5% from the year-earlier period, representing the fifth straight month of decline, compared with a 4.3% fall in November.

But in India's western states of Maharashtra and Gujarat, two of India's most industrialised provinces, monthly demand increased.

In October, power demand had fallen 13.2% from a year earlier, its steepest monthly decline in more than 12 years, as a slowdown in Asia's third-largest economy deepened.

Industry accounts for more than two-fifths of India's annual electricity consumption, while homes account for nearly a fourth and agriculture more than a sixth.

The slower demand growth is a blow for many debt-laden power producers, who are facing financial stress and are owed over $11 billion by state-run distribution companies.

India's overall economic growth slowed to 4.5% in the July-September quarter, government data released in November showed, the weakest pace since 2013 as consumer demand and private investment fell.

The government has estimated growth in the current financial year that runs through to March will be the slowest since the 2008 global crisis.

"This reflects overall economic slowdown, because if you look at other high frequency data like diesel consumption, everywhere you are seeing contraction," Rupa Rege Nitsure, chief economist at L&T Financial Holdings.

But India's central bank will not have much scope to cut rates to stimulate the economy because inflation has been rising sharply and reached 7.35% in December compared with 1.97% in January last year.

Economists say India's growth will continue to hover around 4.5% levels in the Oct-Dec quarter.

"In the Oct-Dec quarter as well growth (GDP) will be around the same level as July-September. My estimate for the full year is around 4.7% growth," Nitsure said.

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News Network
March 5,2020

Bharuch, Mar 5: Vijay Kumar, a resident of the Tamil Nadu has sought help from his friend Abdulkhuda Mohd Hanif Shaikh who is residing in Gujarat to build a temple in his village.

Abdulkhuda Mohd Hanif Shaikh, who also belongs to Tamil Nadu's Paraipatti village and has been residing in Gujarat' Bharuch for a decade has collected Rs 3 lakh from his friends as a donation to build the temple in Paraipatti village in Dindigul district.

"They'd told me 4 months ago and came to me 10 days back. From Vapi to Mehsana, there are several Madrasis, even here in the village too. I personally went to them and collected around Rs 3 Lakh," Shaikh said.

Vijay Kumar said that he stayed in Gujarat for ten days and collected Rs 3 Lakh with him.

"I had sought help from him. I stayed here in Gujarat for 10 days, and went with him from people to people and collected Rs 3 Lakh. No one lives like Hindus or Muslims in our village, everyone lives like friends," he said.

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