Taxpayers aggrieved by reckless assessment complain to CBDT

- Antenna - Vivek Mehta

- Officials sending demand notices by haphazard assessment with the calculation that vigilance will not be investigated.

Due to crude understanding of income tax laws and inadequate knowledge of accounts, income tax officials are adding to the woes of corporate taxpayers and general taxpayers by making haphazard assessments in faceless assessment. In fact, the assessing officers are increasing the burden of court cases by issuing false and reckless demand notices. Proceeding in this type of case, since no concrete arguments can be presented on behalf of the Income Tax Officers in the Court, the case is dismissed holding the assessment order invalid. Under these circumstances, a big question is arising whether the officers have the ability to assess in faceless assessment.

Taxation experts have also complained to the Central Board of Direct Taxes on this issue. Confusion has spread due to faceless assessment. Secondly, if such assessment orders are challenged in court or in appellate tribunals, most of the orders are set aside. As it is faceless, online hearing has to be done regarding the demand taken out in the assessment. It does not consider the submission of taxpayers. Evidence submitted by taxpayers is also not considered. Central government has introduced faceless system to make assessment transparent and reduce corruption. But officials are adding to the woes of taxpayers by issuing false demand notices. Big companies also complain that assessing officers are wrongly disallowing some expenses and increasing the burden on taxpayers.

He has disclosed his stock in the taxpayers book and also has his receipts. Thus there is no confusion regarding the purchase made by the assessee or the ownership of those goods. Still the Assessing Officers are attaching that stock. As a result, the taxpayer's suffering is increasing. As a result, the taxpayer's business is also suffering. However, the officials are not ready to discuss this issue at all. If the items attached in this way are electronics, their prices keep decreasing. Hence, the tax payer suffers an irreparable loss, but the officials eager to collect the tax are not ready to understand this.

Officials appointed as direct recruits or promoters are not really aware of the assessment. Even the officers responsible for reviewing their orders do not review them. Even the senior officers give approval to the demand orders of the junior assessing officers without studying them. As a result, other companies are showing two percent profit, they are asking childish questions like why you have shown 14 percent profit. These Assessing Officers are sending demand notices by indiscriminately adding to the income of the taxpayer.

A provision of penalizing taxpayers for wrong assessment should be implemented to exempt taxpayers from arbitrary assessment orders of Income Tax officers. They add haphazardly to the new assessment without looking at the five to ten years old track record of the taxpayers. Secondly, as the revenue of the Assessing Officers has stopped due to faceless, they are also trying to drag the government back to the old system by creating disputes by issuing haphazard orders.

Tax experts say that assessment officers should be given special training before being entrusted with the responsibility. Notices are sent to taxpayers, but not enough time is given to respond.