Framing of Quality assessments-request for submission of report - Income Tax - F. No. 225/92/2017/ITA.II

F. No. 225/92/2017/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, New Delhi, the 10 th of February, 2017 To All Pr. CCsIT/CCIT(Central) /DsGIT(Inv.)/ Pr. CCIT(International-tax)/CCIT(Exemptions) Sir/Madam Subject: Framing of Quality assessments-request for submission of report- regd. As a mechanism to monitor quality of scrutiny assessment orders, it was laid down in para 4 of Instruction No. 4 of 2016 of CBDT dated 13.07.2016 that Pr. CCsIT/CCIT(Central)/Pr. CCIT(International-tax)/CCIT(Exemptions)/DsGIT(lnv.) would submit a report containing details of at least 25 quality assessment orders from their respective charge by 31st January, 2017. In this regard, I am directed to state that no such report has been received from any of the charge till now. In the past also, many of the quality assessments reported by the field, in fact, did not reflect any quality in true sense. 2. The strategy for framing quality assessments has been elaborated by the Board in detail in Annual Central Action Plan for last three years under the Heading-Strategies, Part 2. 3. The Board has now decided to monitor quality of assessments more closely. It shall now be required that Pr.CCsIT/CCIT(Central)/Pr.CCIT(International-tax)/CClT(Exemptions)/ DsGIT(lnv.), shall furnish report of quality cases in their respective charge to Member (IT), CBDT by 06.03.2017. It is expected that at least ten quality cases from each Range will be reported. These would cover the assessments, where orders have been passed till 31.12.2016 and the report is to be submitted in the Annexed format. It is requested that the reports should be compiled in a CD/DVD and send to the Board in a safe package. 4. I am further directed to request that that a consolidated report for your entire region be submitted indicating the Pr. CIT/Range/Circle/Ward along with name of officers concerned relating to the cases. If any of the assessing authorities or their supervisory authorities fail to submit reports within the compliance timeframe, Pr. CCsIT/CCIT(Central)/Pr. CCIT(International-tax)/CCIT(Exemptions)/DsGIT(lnv.) shall furnish their report to Board based on available reports without waiting for belated reports. Details of charges which failed to submit reports in a timely manner should also be mentioned. In such cases, it shall be presumed that that these charges have no quality assessments to report and this inference may be reported in the APARs of concerned officers. 5. The above issues with the approval of Member (IT), CBDT. Yours sincerely, (Rohit Garg) Director-ITA.II, CBDT Enclosure: as above Annexure-Format of Compilation Pr.Chief Commissioner of Income/CCIT (Central)/ Pr. CCIT (International-tax)/CCIT (Exemptions)/ DsGIT (Inv.) LIST OF QUALITY ASSESSMENT CASES CCIT/DGIT charge Name of the case, PAN No. and assessment year Jurisdiction (Pr.ClT/ Addl. CIT /JCIT, DCIT/ACIT/ ITO) Assessment completed under section -(143 (3)/ 144/147/ 153A/153C) Selection criteria- CASS-Complete/ CASS-Limited/ Manual Compulsory. Please specify Items of addition categorized as quality work Amount of concealment detected/ dis-allowance made in respect of these items. Whether Penalty initiated/ prosecution launched (relevant section to be mentioned) Note clearly bringing out quality aspects by concerned Pr. CIT/ CIT/ Pr. DIT/DIT (max, 100 words) CCsIT/ DsGIT grading (1-5 with 5 being highest) comments on Quality of order (max. 50 words) Note: a) The compilation should not include the cases of PSU, Government organisations and the cases with a history of addition / disallowances being consistently made and contested in appeals in the past years. In such cases, only those issues should be reported which have been detected for the first time during the year. b) Before reporting such cases in compilation, due care must be taken that the issues have been properly thrashed and it is not a case where the Assessing Officer has resorted to summary additions routine disallowances, repetitive additions or best judgment assessment without any worthwhile independent inquiry. c) The Central Charges are requested to incorporate those cases where the Assessing Officer, while framing assessments in search and seizure cases, have been able to establish tax evasion and made independent detailed investigation traversing beyond the indicated facts in Appraisal report of the investigation unit. The assessments in any other cases which reflect the work done by the Assessing Officers on the basis of their independent investigations can also be included if it amounts to quality work. d) Merely because additions involving substantial amounts have been made, an order may not necessarily become a quality assessment order. Hence basis of reporting should not be only on the ground of quantum of additions.