CBDT vide a Press Release dated 16.06.2022 reminds the taxpayers about its commitment to reduce taxpayer grievances and stated that revised Instruction for constitution and functioning of Local Committees to deal with taxpayer grievances arising out of high-pitched assessments was issued.
Earlier, CBDT issued an Instruction on 23.04.2022 for the constitution and functioning of the ‘Local Committee’ to deal with Taxpayers' grievances arising from high-pitched scrutiny assessments subsequent to the launch of the faceless assessment regime. This Instruction supersedes the earlier Instruction No. 17/2015 dated 09.11.2015 issued on the matter.
In 2015, the Board had issued a similar instruction for the constitution of local committees to deal with taxpayers’ grievances from high-pitched scrutiny assessments. This was issued at a time when scrutiny assessments were conducted in physical mode and such assessments were done by the jurisdictional assessing officer. The concept of faceless assessment was not in vogue at that time.
In 2019, the Faceless Assessment Scheme was introduced and since then the scrutiny assessments were conducted under the faceless regime thereby, the need is felt to issue revised instructions so that the grievances of the taxpayers arising from high-pitched assessments under the faceless regime can be resolved. These revised instructions of 2022 also cover high-pitched scrutiny assessments conducted under physical mode by the jurisdictional assessing officers either before or after the introduction of the faceless assessment regime.
These instructions of 2022 replace the earlier instructions issued in 2015 and thus the instructions of 2022 shall prevail contemporarily.
These Local Committees are constituted to expeditiously deal with taxpayers’ grievances arising from high-pitched scrutiny assessments.
This instruction as well as earlier instruction of 2015 does not define the term ‘high-pitched’ assessment. In general, it means an assessment where additions are made far beyond the returned income.
Summary of the Instruction on high-pitched assessments and taxpayers’ grievances-
Constitution of Local Committee
Local committees are required to be constituted in each Pr. CCIT region across the country which shall have three members including one from the AU unit. All the members are of Pr. CIT/CIT rank. The senior-most member would be designated as the Chairperson of the committee.
Jurisdiction of the Local committee
The committee shall have jurisdiction over all the assessee who comes under the jurisdiction of respective Pr.CIT in dealing with the taxpayers’ grievances from high-pitched assessments completed under both the faceless and non-faceless assessment regimes.
Receipt of Grievances
1. For Faceless Assessments: Grievances related to high-pitched assessments completed under the faceless assessment regime will be received by NaFAC through a dedicated e-mail ID: samadhan.faceless.assessment@incometax.gov.in
2. For non-Faceless Assessments: Grievances related to high-pitched assessments completed under the non-faceless assessment regime will be received by the concerned office of the Pr.CIT, either physically or through e-mail.
Action to be taken on receipt of grievance petitions
Proper records would be maintained for dealing with such grievances of the taxpayers. The local committee would examine whether there is a case of prima facie case of high pitched assessment in the instant grievance. The Local Committee shall have the power to call the relevant assessment records.
After examining the grievance case, the Local Committee shall submit its speaking report to the concerned Pr. CCIT to confirm whether the assessment order under grievance is a high-pitched or not a high-pitched assessment.
Disposal of the grievance: As per the Instruction, a time limit of two months is given to the Local Committee to dispose off the grievance.
Follow up action by Pr. CCIT
On receipt of the report of the Local Committee, the concerned Pr. CCIT shall inter alia administratively advise the concerned Pr. CIT not to take any coercive recovery in cases identified as high pitched assessments by the Local Committee.
Read the full text of the CBDT Instruction dated 23.04.2022 on Constitution of Local Committee to deal with Taxpayers Grievances from High-Pitched Scrutiny Assessment in this article.
Read the full text of the CBDT Instruction No. 17/2015 dated 09.11.2015 on Constitution of Local Committee to deal with Taxpayers Grievances from High-Pitched Scrutiny Assessment in this post.
Read the full text of the CBDT’s Press Release dated 16.06.2022 on reminding taxpayers on Revised Instruction for Constitution of Local Committee to deal with Taxpayers Grievances from High-Pitched Scrutiny Assessments after Faceless Regime
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 16th June, 2022
PRESS RELEASE
Revised Instruction for constitution and functioning of Local Committees to deal with taxpayers’ grievances due to high-pitched Scrutiny Assessment
In line with CBDT’s policy and commitment towards providing enhanced taxpayers’ services and reduce taxpayers’ grievances, CBDT has issued revised Instruction for constitution and functioning of Local Committees to deal with taxpayers’ grievances arising out of high-pitched Scrutiny Assessment through F.No.225/101/2021-ITA-II, dated 23rd April, 2022.
This instruction also provides for initiation of suitable administrative action against the officer concerned, in cases 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.
The revised Instruction dated 23rd April, 2022 in F.No.225/101/2021-ITA-II is available on www.incometaxindia.gov.in at https://incometaxindia.gov.in/Lists/Latest%20News/Attachments/518/Instrution-225- 101-2021.pdf
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax(OSD)
(Media & Technical Policy)
Official Spokesperson, CBDT
Download CBDT’s Press Release dated 16.06.2022 on reminding taxpayers on Revised Instruction for Constitution of Local Committee to deal with Taxpayers Grievances from High-Pitched Scrutiny Assessments after Faceless Regime in PDF format
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