Tax Association make Representation regarding Disposal of Appeal before CIT

The Income Tax Bar Association jointly with All Gujarat Federation of Tax Consultants has made representation before Hon’ble Finance Minister Smt. Nirmala Sitharaman regarding Disposal of Appeal before CIT.

The Income Tax Bar Association (ITBA) was established in 1947 with the aim of representing the issues of Tax Consultants and increasing awareness among Taxpayers, The Income Tax Bar Association is one of the oldest and most active Bar Associations in India. It regularly organizes Conferences, Study Circle Meetings, a Two-Day Tax Conclave, etc. for the benefit of the members. It has a 1nen1bership strength of more than 1200 Tax Advocates, Chartered Accountants, and Tax Practitioners.

The All Gujarat Federation of Tax Consultants (AG FTC), founded in 1992, is the first and only Apex Regional Body of Advocates, Chartered Accountants, and Tax Practitioners and Tax Professionals of Gujarat, with a membership strength of more than 1500 professionals and institutional members from 37 local bar associations from all the districts of Gujarat.

The prime object of the Federation and Association is not only to work for the cause of the professionals but also to educate the public at large. We act as a catalyst between citizens and government authorities. We regularly organize Seminars, Webinars, Tax Conclaves, and Lectures on legal awareness in mofussil areas across Gujarat. The Two-Day Tax Conclave is a landmark event and has become an annual highlight for the tax professionals in the state of Gujarat.

FACELESS APPEAL SCHEME

The implementation of the faceless appeal scl1en1e has undoubtedly streamlined the appeal procedure. The faceless appeal scheme has brought about many advantages in terms of efficiency, transparency, and impartiality. The issues faced by taxpayers and tax practitioners are as under:

(i) We have been informed by our members that after the introduction of the Faceless Appeal Scheme, the disposal of pending appeals filed prior to the introduction of the Faceless Appeal Scheme is very slow and in fact, several appeals filed in the Year 2015 and 2016 are still pending.

(ii) Only a few’ appeals have been disposed of, and there has been an inordinate delay in disposal. There have been very few appeals disposed

(iii) Non-Disposal of Appeals after repeated and multiple submissions uploaded: Some faceless appeals were fixed for hearing more than once in the last two years, and the appellants duly submitted their papers and representation, but the appeals are not being disposed of. In many cases, our members have reported that even though appellants have uploaded their submissions multiple times, no order has been passed.

(iv) When the first appeal is pending, the appellant must deposit at least 20 percent of the tax in dispute for a stay of balanced demand. As stated, we have been informed that some of the appeals have been pending for more than five years. Depositing tax without simultaneous early disposal of appeals causes hardship to the businessman.

(v) It is requested to that suitable arrangement may be made so as to priority Disposal of few categories of cases like:

• Cases on covered matters by decisions of Hon’ble Supreme Court and jurisdictional High Courts
• Cases where opportunity was not given, and matter is remand back to lower authority.
• Cases involving appeals of senior citizens & Cases of widows.
• Penalty cases where quantum has already been deleted.
• Appeals filed against order u/s 143(1) of the Act.
• Appeals filed against order u/s 272A of the Act.

(vi) Kindly note that this slow disposal of Appeals by NFAC have involved to a spiral effect 0n the working of the Income Tax Appellate Tribunal. Also, the other worry now is flooding of appeals to the ITAT if the NFAC were to dispose of all the pending appeals within a short span of time.

Members are also expressed the view point that the present communication mechanism primarily functions as a one-way channel, where information is predominantly disseminated from the appellant to the Commissioner (Appeal). But there is a perceived gap in the ability of the Commissioner (Appeal) to share their concerns on the n1atters raised or to seek clarification ,when necessary.

We believe that the appeal process, while efficient, could be further strengthened by introdt1cing a means for the Commissioner (Appeal) to engage in direct communication facelessly with the appellant. By allowing the Commissioner (Appeal) to voice concerns, seek elucidations, and address potential ambiguities, a more comprehensive understanding of the case can be achieved. This, in turn, would contribute to a more informed and balanced decision-making process. By addressing the concerns expressed by our members, we endeavor to uphold the principles of fairness and natural justice in the appeal process. A System that encourages two-way communication aligns with the essence of mutuality, ensuring that both parties are given an equal opportunity to present their view points and contribute to the resolution process.

We are making an appeal before your honour to direct the CBDT to direct the NFAC to hear the appeals expeditiously and effectively so that the taxpayers will be able to get finality on the tax dispute at the earliest. Also, considering the huge quantum of pendency, CBDT may be directed to frame guidelines for the disposal of pending appeals so that there are no untoward effects of such disposal that would affect the justice delivery system.

We humbly request that you consider the above representation by the All Gujarat Federation of Tax Consultants (AGFTC) and the Income Tax Bar Association (ITBA), do the needful, and oblige.

For Official Representation Download PDF Given Below: