CBDT Slams CIT(A) for Irregularities in Appellate Orders [Read Instructions]

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The Central Board of Direct Taxes ( CBDT ) on Thursday warned all the Commissioner of Income Tax (Appeals) and other officials for irregularities in appellate orders.

The CBDT missive also clarified that the instruction in 2003 mandating passing of appellate order within the fifteenth day of the final hearing is also applicable to orders passed by the CIT (Administrative)/ CCIT as regards matters within their purview under different sections of the Income Tax Act.

“The idea behind such stipulations was to alleviate undue hardship to the assessee and to have a smooth interface with the assessee,” the Board said.

The Board further pointed out that “the Manual of Office Procedure issued by the Directorate of Organisation and Management Services mandates immediate dispatch of appeal order either by registered post or through a notice server without waiting for the appellant to file an application in this regard. Delay in uploading of appeal orders on ITBA or violation of the instructions regarding dispatch of appeal orders gives rise to suspicions about backdating of orders and/ or malafide intent on the part of officer/ officials concerned.”

It further said that though the responsibility of dispatching the orders is on the office staff, it is the duty of the CIT (Appeals) to ensure that the CBDT instructions are followed by his office staff in letter and spirit. “Violation of CBDT instructions by office staff reflects adversely on the supervisory capabilities of the Officer for not being able to control/ motivate a handful of staff to follow CBDT instructions. Such supervisory failure is also violative of Rule 3(2)(i) of the CCS (Conduct) Rules, 1964,” it added.

The Board also pointed out the technical and legal lapses noticed during vigilance inspections of CIT (Appeals).

The Board narrated some instances wherein the Assessing Officers made additions towards unsecured loans and/ or share application money after detailed inquiries and bringing clear facts on record that either the creditor was not traceable or had no or meager source of income or could not produce bank account details or could not explain the source of deposits just before advancing loan. The CsIT (Appeals) gave relief primarily on legal grounds without considering the facts on record and without making any further inquiry in the matter.

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