Gujarat: I-T fortnightly drive to clear pending refund, rectification cases

Income Tax department will begin a fortnight long campaign, beginning May 16, to dispose pending cases of appeals effect and rectification claims. However, sources in tax advocate community say that such drive often end in mere formalities and the intention behind the drive is not materialised.

According to a communication by Central Board of Direct Taxes (CBDT), it has been decided to dedicate the second fortnight of May to expeditious disposal of appeal effect and rectification claims of tax payers. "During this period, all assessing officers shall accord top priority to the work of giving appeal effect and passing rectification orders, and shall earmark the first half of the day to meet applicants/counsels who seek to have a hearing to explain the cases," it said.

A senior official of the department clarified that all appeal cases pending with Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Court and Central Processing Centre (CPC) – Banglore will be taken up as a part of drive.

Sources in tax practicing community welcomed the initiative but said that since results of elections for Lok Sabha will be declared on May 23, the time between May 16 and May 23 is unlikely to be spared for the drive. There will be other holidays during the course of the drive. Often officials complain about lack of staff hindering the performance. A source in the department said that because of lack of officials in one jurisdiction, officials of other jurisdictions have to solve cases through video conference.

Varis Isani, former president of Gujarat Sales Tax Bar Association said that often a tax payer pays the tax, but it does not get reflected in the system of CPC – Bengaluru, so the department raises a tax demand inspite of the fact that tax has already been paid. In such cases the tax payer goes for rectification to get his money back. Also appeal cases where final order is in the favour of the tax payer, but he had to pay the 20% of the demand amount for going to appeal. "Even after the order, such refunds are not made on time. Such cases will be targeted as a part of the drive. So many such cases are pending," he said.

A department official said that it is not possible to give the number of such cases, tax advocates estimate that it could be over 1.5 lakhs in Gujarat alone.

PENDING CASES

A senior official of the department clarified that all appeal cases pending with Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Court and Central Processing Centre – will be taken up