GOVERNMENT OF INDIA

OFFICE OF THE CHIEF COMMISSIONER OF INCOME TAX

AAYAKAR BHAVAN MAHARSHI KARVE ROAD,MUMBAI 400 020

ADDITIONAL COMMISSIONER OF INCOME TAX (HQRS)CO-ORDINATION, MUMBAI

No. MUM/CC/COORDN/BCA/MIS 69

Date – 8/4/04

Sir,

Sub.: Minutes of the meeting of CCsIT with Members of BCAS, CITC, WIRC Held on 10.03.2004 – Constitution of Nodal Committee – reg.

Kindly refer to the above.

I am directed to forward herewith a copy of the Minutes of Meeting held by the CCsIT with the representatives of the three associations on 10.03.2004 and also a copy of the Office Memorandum in which the CCIT, Mumbai has nominated 6 CsIT as members of the Nodal Committee as decided in the above mentioned meeting.

Yours faithfully,

Sd/-

(M. K. Dubey)

Addl. Commissioner of Income Tax (HQ)

Co-ordination Mumbai

Encl.: As above

No. MUM/CC/COORDN/BCA/MIS 69

GOVERNMENT OF INDIA

OFFICE OF THE CHIEF COMMISSIONER OF INCOME TAX

AAYAKAR BHAVAN MAHARSHI KARVE ROAD, MUMBAI 400020.

Date – 08/04/2004

OFFICE MEMORANDUM

In accordance with the discussions held with the members of Bombay Chartered Accountants Society, Chamber of Income Tax Consultants and Western India Regional Council, the CCIT, Mumbai hereby constitutes a Nodal Committee and nominates the following CsIT as members of the Nodal Committee:

  1. Shri T. K. Shah – CIT-3, Mumbai
  2. Shri Tarkeshwar Singh, CIT-6, Mumbai
  3. Shri V. K. Mishra, CIT-15, Mumbai
  4. Shri Sudhir Chandra, CIT-19, Mumbai
  5. Shri S. K. Chattopadhyay, CIT-26, Mumbai
  6. Shri Swatantra Kumar, CIT-TDS, Mumbai

This Nodal Committee shall have meetings with the Representatives of the above mentioned three Associations on a monthly basis regarding day to day functioning and procedural bottlenecks in the department. The issue arising from these monthly meetings, if they are not resolved in the Nodal Committee would be taken up for discussion in the quarterly meeting of CCsIT with the members of the three Associations.

Sd/-

(G. ANANTHARAMAN)

Chief C.I.T., Mumbai

Copy to:

  1. The Chief Commissioners of Income Tax I to XIII, Central I & II.
  2. The Director General of Income Tax.
  3. All Commissioners of Income Tax / The Directors of Income Tax (Extent) / (I.T.).
  4. Bombay Chartered Accountants Society / Chamber of Income Tax Consultants / Western India Regional Council.
  5. The above mentioned Commissioners of Income Tax being the members of the Nodal Committee for necessary action.

Sd/-

Addl. Commissioner of Income Tax (HQ)

Coordination, Mumbai

MINUTES OF THE MEETING OF CCsIT WITH MEMBERS OF BOMBAY CHARTERED ACCOUNTANTS SOCIETY, CHAMBER OF INCOME TAX CONSULTANTS AND WESTERN INDIA REGIONAL COUNCIL OF ICAI HELD IN THE CONFERENCE ROOM ON 10.03.2004

Members present for the meeting:

Income Tax DepartmentMembers of Associations

Shri G. Ananthraman, CCIT

Representatives of BCAS

Shri Shibaji Dash, CCIT-IIIShri Rajesh Muni, President

Ms. M. H. Kherawala, CCIT - VShri Kishor Karia, Chairman,

Taxation Committee

Shri R.R.Singh, CCIT-VII

Shri Rajiva Ranjan Singh, CCIT-IX

Shri Narayan Varma, Past

President

Ms. Indira Bhargava, CCIT-X

Shri Arvind Dalal, Past

President

Shri S. K. Bhatnagar, CCIT-XI

Shri Gautam Nayak, Vice

President

Shri Vinod Kumar, CCIT-XII

Shri J.K. Patnaik, CCIT-XIIIShri Nayan Parikh,

Co-chairman, Taxation

Committee

Shri Arun Bhargava, CCIT (Cent)-IShri Sanjeev Pandit,

Shri Sudhakar Mishra, CCIT (Cent)-IIConvenor, Taxation Committee

Shri H. Tulsiyan, DGIT (Inv.)

Representatives of Chamber of

Income Tax Consultants

Shri Vipin Batavia, President

Shri Sunil Kothare, Chairman,

Law & Representation

Committee

Shri Chandravijay Shah,

Chairman, Taxation Committee

Shri Keshav Bhujle, Past

President

Shri Vipul Joshi, Hon. Treasurer

Representatives of WIRC of

ICAI

Shri Atul Bheda, Past Chairman

Shri Sanjeev Lalan, Secretary

Shri Sanjeev Maheshwari,

Member

Shri G. Anatharaman, CCIT, Mumbai, while welcoming the members of the three associations mentioned above, pointed out at the buoyancy in the economy in the current year. He also highlighted the paradigm shift in the thrust of the administration which is underpinned by voluntary compliance in a taxpayer-friendly regime. Also, he explained in detail the rapid progress made by the Department in the sphere of computerization to bring about speedy delivery in various processes including refunds through ECS, besides ensuring transparency in the entire working. CCIT also spoke at length about the significance of the role played by members of Associations in tax compliance and made a fervent appeal to synergise with the Department in the endeavour to maximize to the advance tax collections as the deadline is fast approaching in the larger and long term interests of the company.

  1. Then the CCIT invited the representatives to express their views on the various issues raised by members of Associations. The action points in respect of each of the issues discussed are as under:

i)To begin with, it was agreed upon by CCsIT and members of Associations as well that a Nodal Committee represented by 6 CsIT (2 Corporate and 3 Non-corporate and 1 IDS) and 6 members nominated by the associations should be set up to resolve the issues relating to the day-to-day functioning and the procedural bottlenecks in the Department. It was suggested that they will have a meeting once in a month and the significant issues arising therefrom, if they cannot be resolved at this level, would be tabled and discussed in the quarterly meeting of CCsIT with Members of the three Associations.

ii)As regards pendency of applications for rectification and appeal effect applications, it was decided that members of BCAS, CITC and WIRC should submit copies of such pending applications to the concerned Assessing Officer and also submit a Master List of such pending applications with all the Assessing Officers to the concerned CCsIT. These will be entered in the Pendency register and action taken for disposal will be monitored at the concerned CIT/CCIT level.

iii)So far as Clearance Fortnight for such pending matters is concerned, it was agreed by all the members present that a “Clearance Fortnight” would be held in the second half of May, 2004 for attending to pending applications for rectification and appeal effect etc. Before that, the Master List of all pending applications for rectification, appeal effects etc., should be submitted to the office of the concerned CCIT.

iv)A Clearance Day at the level of each Assessing Officer once in a fortnight from the month of June is proposed to be organized. This day will be kept free from normal routine work so as to attend to such applications/grievances. After July 2004 this will be reviewed.

v)It was agreed upon by all the CCsIT that a Reference Docket Number may be possible for every rectification application filed by the assessee. However, the details of the same have to be worked out by the Nodal Committee.

vi)It was agreed by all the members that a mechanism has to be devised to identify the defects in the TDS certificates without disrupting the processing of returns. Some method is to be devised to inform the assessee regarding the defects in TDS Certificates due to which credit could not be given. This will be discussed by the Nodal Committee.

vii)With reference to the issue raised by the associations regarding non-granting of TDS credit in a particular year, it was agreed that Section 199 of the I.T. Act adequately takes care of the situation and the Assessing Officers have to take action accordingly. Assessing Officers have to ensure that u/s. 199 credit for TDS is given in the Assessment Year in which the corresponding income is included in the total income.

viii)As regards signatures of receiving clerks, it was agreed that instructions will be issued afresh for the same and that the Receiving Clerks should also be putting his Stamp bearing his name. As far as non acceptance of letters and correspondences by staff members was concerned, CCsIT stated that this should not happen. The CsIT/Range heads have to ensure compliance of these instructions.

ix)Regarding granting of interest u/s. 244A up to the date of signature on the refund by the Assessing Officer, instruction to this effect already exist and the Assessing Officers have to follow these instructions. Delay in dispatch of refund will have to be avoided.

x)The suggestion that revalidation of refund cheques may be allowed as was being done in the past was not found acceptable in view of the existing instructions which specifically prohibit revalidation of old cheques. However, the assessing officers should issue fresh cheque in place of time based refund cheques as soon as possible and the concerned CsIT may ensure that these are not unduly delayed.

xi)Regarding functioning of Grievance Cell, it was agreed upon that the procedure would be given publicity in the journals of all the three organizations i.e. BCAS, CITC and WIRC (A copy of the existing plan is to be given). It was also agreed that the figures of disposal of grievance petitions may be given periodically for which the modalities may be discussed in the Nodal Committee.

xii)As regards abnormal waiting period of assessees and their representatives at the office of the assessing officers, it was agreed that it should be avoided.

xiii)Whether there is a pending demand and assessees has filed application for stay, the AOs have to follow the directions contained in the CBDT instruction No.1914, which adequatcly covers various situations. In case of any grievance, the assessees always have the option of approaching the concerned CIT.

xiv)It was agreed that all records pertaining to one assessee should be kept together. Whenever the case is transferred, all the folders and records pertaining to the case should be transferred together to the Officer where jurisdiction is transferred.

xv)Before adjustment of any old demands is carried out against refunds due to the assessee, provisions of Sec.245 is to be kept in mind by the Assessing Officer.

xvi)It was agreed that wherever remand reports are called for, these should be prepared expeditiously by assessing officers. The concerned CsIT may keep a watch on timely submission of remand reports.

To conclude, CCIT reminded members of Associations about payment of Advance Tax by 15th March, 2004. Also, it was conveyed to all those present that a Nodal Committee Meeting will be held from April 2004 onwards.

The meeting concluded with a vote of thanks by Shri Kishor Karia, Chairman, Taxation Committee, BCAS, Mumbai.

Sd/-

(G. ANANTHARAMAN)

Chief C.I.T. Mumbai

Copy to:

1)The Chief Commissioners of Income Tax I to III, Central & II, Mumbai for information and necessary action.

2)The Director General of Income Tax, Mumbai.

3)All Administrative Commissioners of Income Tax, The Directors of Income Tax (Exemption)/International Taxation), Mumbai.

4)Bombay Chartered Accountants’ Society/Chamber of Income Tax Consultants/Western India Regional Council

Sd/-

Addl. Commissioner of Income Tax

(H.Q.) Coordination, Mumbai.