Introduction of introduced a control over grant of appeal effect by the ITO at the level of CBDT. - Income Tax - 1534/CBDT

INSTRUCTION NO. 1534/CBDT Dated: November 3, 1983 Board has been of the considered view that effect to the appellate orders should be given within a reasonable time i.e. 14 days from the date of receipt of the appellate orders. With a view to achieve this objective the Board has issued instructions from time to time. A list of these instructions and their copies are enclosed herewith. These instructions prescribe several controls at different levels viz. at the level of ITO, IAC, CIT and the C.B.D.T. as under: CONTROL AT THE LEVEL OF INCOME-TAX OFFICER (i) The register of appeal/revision petitions maintained by the Income-tax Officer under paragraph 21 of Chapter XIII of the Office Manual Vol.II Section II provides for a watch over the timely grant of appeal effect to the different appellate orders. (ii) The period-wise bifurcation of the pendency of appellate orders is required to be shown in the Monthly Progress Report prepared by the ITO. At the time of showing the pendency of the appellate orders in the Monthly Progress Report, the Income-tax Officer gets an opportunity to check delays in the grant of appeal effects. (iii) The CIT Action Plan contains targets for the area of work relating to the grant of appeal effects. In the report of achievements for this area of work, the ITO is required to show period-wise break-up of the pending appellate orders. While sending the Monthly Control Information, the ITO gets an opportunity to examine the reasons for delay in the grant of appeal effects. (iv) The Central Scrutiny Report required to be sent by the ITO on the majority of the adverse appellate orders, contains a column for indicating the date of grant of appeal effect and the reduction in tax as a result of the appellate order. In case the columns in the Central Scrutiny Report are properly filled in, there can be no omission in grant of appeal effects. (v). Under CBDT Instructions No.1000 dated 17.8.76 and Instruction No.1038 dated 3.2.1977, the Income-tax Officer(Judicial) is required to enquire from the ITO about the grant of appeal effects in the case of orders of the ITAT. At the time of sending the Central Scrutiny Report and reply to the query of the ITO (Judicial), the Income-tax Officer, gets an opportunity to see that appeal effect is given to the appellate orders of the ITAT. (vi) Vide Member (R A)'s D.O. letter dated 15.9.1981, the CsIT(Appeal) are required to forward list of high demand appeals decided by them to the CBDT with a copy to the Commissioner of Income-tax. The Commissioner is required to enquire from the ITO whether appeal effect has been given to the appellate orders. If the ITO attends to the queries of the CIT about the high demand appeals, the grant of appeal effect in the case of high demand appeals can be ensured. (vii) In the dossiers of arrear demands exceeding Rs.10 lakhs (in the case of Income-tax) the ITO is required to give the reasons for failure to grant appeal effect where appellate orders have been received. If the reasons in the dossiers are properly given, watch over the grant of appeal effect can be ensured. (viii) Under the CBDT Instruction No.967 dated 5.7.76, the Commissioner of Income-tax and the IAC are required to send consolidated list of appellate orders to the ITO in respect of appellate orders of the ITAT and AAC respectively. The ITOs are required to report the dates of giving effects to the appellate orders to the CIT/IAC. CONTROL BY CIT/IAC The controls required to be exercised by the IAC/CIT over the grant of appeal effect under different instructions are as follows:- i) Examination of data given in the Monthly Progress Report by the IAC/CIT. ii) Examination of the Information given in Monthly Control Information by the IAC/CIT. iii) Proper check over the Central Scrutiny Report sent by IAC/CIT. iv) Proper examination of the enquiries about high demand appeals by the CIT. v) Examination of the list of appellate orders sent by the ITO under Instruction No.967 dated 5.7.1976. vi) Examination of the reasons for failure to grant appeal effect given in the dossiers. CONTROL BY CBDT: The CBDT Instruction No.1038 dated 3.2.1977 and Instructions No.1000 dated 17.8.76 require submission of report by the CIT to the CBDT every quarter in respect of the pending appellate orders. These instructions have introduced a control over the grant of appeal effect by the ITO at the level of CBDT. The Board are of the view that if these controls are effectively exercised the problem of delay in giving effect to appellate orders can be overcome. It is, therefore, desired that the concerned authorities should effectively apply these controls. You may please bring this to the notice of all the officers working in your charge.