{"id":15624,"date":"2019-04-24T18:27:52","date_gmt":"2019-04-24T12:57:52","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=15624"},"modified":"2019-06-13T17:42:02","modified_gmt":"2019-06-13T12:12:02","slug":"judgement-against-cbdt-action-plan","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/judgement-against-cbdt-action-plan\/","title":{"rendered":"Bombay High Court Sets Aside CBDT Action Plan of Rewarding CITs"},"content":{"rendered":"<p class=\"has-drop-cap\">Recently, the Bombay High Court has set away a vital portion of the Central Board of Direct Taxes (CBDT) action plan as per which the Commissioners of Income Tax-Appeals (CIT-A) who pass &lsquo;quality&rsquo; orders, would have received rewards which could be unfavorable to buyers. This judgment came due to a writ petition filed by the Association of Tax Consultants against the CBDT&rsquo;s action plan opposing that the &ldquo;quality orders as envisage by CBDT would result in favor of the Income Tax (I-T) Department&rsquo; only&rdquo;. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT.png\" alt=\"\" class=\"wp-image-15626\" width=\"620\" height=\"310\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT.png 845w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT-300x150.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT-768x384.png 768w\" sizes=\"(max-width: 620px) 100vw, 620px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CBDT Action Plan for\nthe Financial Year 2018-19<\/strong><\/h2>\n\n\n\n<p>As per the CBDT&rsquo;s Action Plan for the Financial\nYear 2018-19, the CITs-A would be allowed additional incentives or performance\ncredits which would depend on the number of rulings they make in favor of the\ntax department. Their appraisals will rely on &ldquo;enhancing the assessment,\nstrengthening the stand of the assessing officer or levying penalty&rdquo;. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>&lsquo;Quality&rsquo; Orders as per CBDT Action Plan<\/em><\/strong><\/h3>\n\n\n\n<p>The\nterm &lsquo;quality&rsquo; orders include cases where the CIT-A enhance the order of the Income Tax Officer which\nmeans the quantum of tax demand is increased or where it strengthens the order\nof the Income Tax officer. It also included the instances where the CIT-A levy fine\non the additions conform by him to a taxpayer&rsquo;s income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues under CBDT&rsquo;s\nAction Plan<\/strong><\/h2>\n\n\n\n<ul><li>It highly favors\nIncome Tax Officers only<\/li><li>Granting of incentives\nto CIT-A for &lsquo;quality&rsquo; orders in favor of the IT Department only.<\/li><li>CBDT&rsquo;s action plan may\nprejudice the minds of the CITs-A.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The\nPetition filed by Chamber of Tax Consultants against CBDT Action Plan<\/strong><\/h2>\n\n\n\n<p>Chamber of Tax Consultants, a not-for-profit body of<a href=\"https:\/\/enterslice.com\/income-tax-return-filing\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" tax professionals (opens in a new tab)\"> tax professionals<\/a>, filed a petition against CBDT Action Plan in the High Court.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Order of the Bombay High Court <\/strong><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0-300x300.jpg\" alt=\"CBDT\" class=\"wp-image-15627\" width=\"299\" height=\"299\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0-300x300.jpg 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0-150x150.jpg 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0-768x768.jpg 768w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0-1024x1024.jpg 1024w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/OJ91CJ0.jpg 1300w\" sizes=\"(max-width: 299px) 100vw, 299px\"\/><\/figure><\/div>\n\n\n\n<ul><li>The Bombay High court said that giving\nadditional incentives to commissioners of income tax (appeals) for pro department\nrulings should be impermissible and illogical.<\/li><li>The High Court order further states that &ldquo;Any\ndirectives by the CBDT which gives additional incentive for an order that the\nCommissioner (Appeals) may pass having regard to its implication, necessarily transgress\nin the Commissioner&rsquo;s exercise of discretionary quasi-judicial powers.&rdquo;<\/li><li>High Court further states that it does not\nempower the CBDT to issue instructions or directions to make a special\nassessment or dispose of a case in a specific manner. <\/li><li>Justice Sarang V Kotwal and Justice Akil Kureshi\nsaid, &ldquo;Prima facie, we feel that it may be impermissible for the CBDT to\npriorities the disposal of the appeals and to set the goals for disposal of the\ncertain number of such appeals by the Appellate Commissioner. From the action\nplan, it is not clear as to the utility of the norms set which the CIT (A) has\nto achieve. If the purpose of the set of norms is to evaluate the performance\nof the CIT (A), there would be all the more reason why the CBDT reconsiders the\nabove-quoted portion of the action plans.&rdquo;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CBDT Future Plan of Action<\/strong><\/h2>\n\n\n\n<p>For the financial year 2019-20, the (<a rel=\"noreferrer noopener\" aria-label=\"Central Board of Direct Tax (opens in a new tab)\" href=\"https:\/\/www.incometaxindia.gov.in\/pages\/about-us\/central-board-of-direct-taxation.aspx\" target=\"_blank\">Central Board of Direct Tax<\/a>) CBDT will modify the definition of quality orders to include all the appeal orders which are passed by the CIT which are either decided in favor or against the revenue. This will be through the viewpoint of the Supervisory Commissioner who will check the time dedicated for finding the facts and passing exceptionally perfect order by considering applicable judicial precedents. This will result in the elimination of partiality. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Our Take on this Judgment<\/strong> <\/h2>\n\n\n\n<p>This judgment has come as a sigh of relief. The CBDT policy had fascinated a lot of criticism. Such incentives are impermissible and obstruct with the CIT (A) quasi-judicial powers. Moreover, such systems send out a very wrong signal to taxpayers. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Bombay High Court has set away a vital portion of the Central Board of Direct Taxes (CBDT) action plan as per which the Commissioners of Income Tax-Appeals (CIT-A) who pass &lsquo;quality&rsquo; orders, would have received rewards which could be unfavorable to buyers. This judgment came due to a writ petition filed by the [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":15636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[2330,1096],"acf":{"service_id":"51"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bombay High Court Sets Aside CBDT Action Plan of Rewarding CITs:<\/title>\n<meta name=\"description\" content=\"The Bombay High Court has set away a vital portion of the Central Board of Direct Taxes (CBDT) action plan which favors Income Tax department\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/judgement-against-cbdt-action-plan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bombay High Court Sets Aside CBDT Action Plan of Rewarding CITs:\" \/>\n<meta property=\"og:description\" content=\"The Bombay High Court has set away a vital portion of the Central Board of Direct Taxes (CBDT) action plan which favors Income Tax department\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/judgement-against-cbdt-action-plan\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-24T12:57:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-13T12:12:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Neelansh Gupta","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/IMG_20190305_185223.jpg","authorDescription":"Mr. Neelansh Gupta is a Legal Counsel having extensive in-depth knowledge of various laws.  He has completed his graduation in law and has experience in IPR, Taxation and Corporate laws.","postViews":415,"readingTime":3,"nextPost":{"id":15625,"slug":"3-gst-rate-scheme"},"prevPost":{"id":15550,"slug":"epf-form-10c"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/CBDT.jpg","postTerms":"Latest News","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15624"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=15624"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/15636"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=15624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=15624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=15624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}