HARRASMENT BY CPC EVEN DURING HARD TIMES DUE TO COVID, LOCKDOWN AND UNLOCK 1 WITH SO MANY CONSTRAINTS. Need immediate constraints.

[DEV KUMAR KOTHARI]

Harassment by CPC Bangalore

Tax payers had expected that while dealing with taxpayers CPC Bangalore will not adopt any kind of wrong practices to harass tax payers. Expectations were met to a great extent. However, it appears that of late , CPC has also adopted practices to harass taxpayers.

Recently many communications issued by CPC Bangalore intimating that the return of income for many years  have been transferred to the assessing officer with rights of rectification.

In many of such cases there is no proceeding pending, matters are many years old, and most of limitations have lapsed. Therefore the taxpayers who received such communication are in dilemma as to why these communications have been issued?

No pending proceedings and limitation expired in many cases for all sort of proceedings make more doubtful situation of intentions of Income Tax Department.

For example see the following communication dt. 18.03.2020 from CPC

( note personal information of addressee/ assesse like name, address, filing reference no, communication reference no. etc. are omitted for secrecy):

Logo, address etc. of CPC, Bangalore

Post Bag No.2, Electronic City Post Office, Bangalore-560500 Telephone: 18001034455 (Toll Free) or 080-46605200 & Address :

Dear Madam/Sir,

Xxxxx  

Subject: Status of your ITR filed with CPC for PAN  xxxxxx  , Assessment Year 2009-10

Ref: - E-Filing Acknowledgement Number  xxxxx    Dated 28-09-2009 Your return for the above mentioned assessment year will henceforth be rectified by your Assessing Officer  xxxxx     . You are requested to contact your Jurisdictional assessing officer for any rectification related issues. You may also log on to https://incometaxindiaefiling.gov.in and click on "Know your Jurisdictional AO" under "SERVICES" menu for further details.

Yours Faithfully N SAIRAJ Asst. Director of Income Tax, CPC

Observations:

The above communication is for assessment year 2009-10 for which ROI was filed on 28.09.2009. There is no proceedings pending and limitations for all proceedings have lapsed.

This sort of communication is definitely causing difficulties and uncertainties to assesse and his consultants.

Why environment of uncertainties about proceedings, rectification etc. are being intimated by CPC when there cannot be any such proceeding.

Perhaps this was first ROI filed online by assesse.

This is one sort of harassment by creating pressures on taxpayers.

This leaves taxpayers in great dilemma about intentions of the income Tax department. In the period of covid-19 and lock down,  unlockdown 1, taxpayers are already worried, tensed and are trying to survive by keeping fit and active to some extent,  with so many difficulties.

 In such circumstances issuing communications in mechanical manner and auto generated without any application of mind is causing worrying condition which will lead to  impairment  of health of taxpayers.

Illegal prima facie adjustments: 

First communication then Adjustment under section 143 .1 .a  are also being made on highly contentious issues where the matters  have been decided in favour of taxpayers . Adjustments have been made and demands are  raised ,  by following a view which is in favour of revenue, instead of commonly pronounced view in favour of assessee.

 This is causing unnecessary demands, litigation and harassment of taxpayers.

For example, additions are being made for any delayed, but actual payment made towards employee’s contributions to EPF, ESI, other funds.

This is constitutionally wrong as well as is not as per favourable view taken by most of High Courts based on judgements of the Supreme Court.

Interest is not allowed correctly:

In many cases interest has not been allowed correctly while granting refunds. For example, due date was extended in audit cases to 31.10.2019. ROI for AY 2019-20  was filed within the extended date of 31.10.2019 , which is recognised in the order u.s. 143.1 also.

However, interest has not been allowed for the period  April 2019 to September 2019 that is six months. Interest for such period is denied considering belated  ROI  and  delay in refund  caused by assesse, whereas fact is that ROI was filed within due date.

Denial of interest for such period  is patently wrong.

However, because amount of interest will not be much so small taxpayers may not raise a dispute. For example on refund of Rs. one lakh interest for six month worked out to ₹ 3000/- ( @0.5% per month for six months will be 3%).

The above practices adopted by CPC may be few examples, there can be more cases of harassing taxpayers in different situations.

If a check is not put immediately, CPC, may also become a HARASSING AUTHORITY.