Page 24 - Banking Finance September 2020

LEGAL UPDATE

crisis can be extended by up to two against a demand raised by the assess- "Suppose a person says, I want per-
years. Meanwhile, the apex court will ing officer. Appeals against orders at sonal hearing, we are making a rule
take up the matter again; it indicated the CIT level can be filed at the Income where we are giving power to PRCCITS
to the parties that there will be no Tax Appellate Tribunal (ITAT) and later or CCITS to examine whether personal
more adjournment. in high courts and the Supreme Court. hearing is needed. But it will be via
video-conferencing as we do not want
The RBI had allowed banks and other "All appeals will be filed on the e-filing any interface," the official said.
financial institutions to offer a six- portal. Suppose one has to go to the
month moratorium to individual and ITAT or high court, it will be in the ad- For submissions that are not in English,
corporate term loan borrowers to tide dress of jurisdiction of the taxpayer. For verification units under the 30 regional
over the financial crisis precipitated by example, if the taxpayer's address in e-assessment centres in 20 cities may
the pandemic-induced lockdowns. her PAN card or returns is Mumbai, be used for translation. "Some submis-
the litigation will also be in Mumbai," sions or documents can be in a differ-
The government stand came a day af-
an official clarified. ent language. There we are making
ter the six-month moratorium period arrangements for translation. It should
ended on August 31. The Bench, However, appeals will be randomly not be very difficult," said the official.
headed by Justice Ashok Bhushan and sent to CIT (Appeals) in any city other
comprising Justices RS Reddy and MR than the place of residence of the tax- Tax consultants are apprehensive
Shah, was hearing a plea on waiver of payer. about the effectiveness of the scheme
interest rate. It had asked the Centre "With faceless schemes kicking in, the and worry that litigation may go up at
and RBI to review the move to charge appeals like in case of assessment will the tribunal level. Tax experts argue
interest on EMIs and interest on inter- be sent to commissioner appeals in a that assessees prefer presenting their
est during the moratorium period. city other than where the taxpayer arguments in person.
resides," said the official. However, a senior CBDT official pointed
Appeals will be filed at The order passed by CIT (Appeals) will out that assessees are used to face-to-
courts in assessee's state, run through the risk management sys- face hearing, whereas now they will
tem (RMS), which uses artificial intelli- need to develop the skill of writing. "If
clarifies CBDT gence to flag outliers and picks up they expect self-explanatory orders,
With income-tax appeals going face- cases that require a review. The RMS then you need to give self-explanatory
less, will all writs and appeals at the technology is supported by submissions also," he said.
higher level such as the income-tax Tata Consultancy Services. Cases re- Amit Maheshwari, partner, AKM Glo-
tribunal or high court have to be filed quiring a review according to the RMS bal, said discussion in person becomes
in Delhi? This is among taxpayers' key will be sent to a commissioner of ap- important at the first stage of appeal
concerns as all orders will be issued
peals in a second city. "Based on the by the taxpayer, which is generally
through the National e-assessment
faceless appeals order, either the de- missing in faceless appeals.
Centre in Delhi.
partment or a taxpayer can move "In the case of faceless appeal pro-
However, senior officials at the Central ITAT," said an official. ceedings, most discussions generally
Board of Direct Taxes (CBDT) have will be allowed to take the help of tech- happen electronically without any per-
clarified that the appeals at the tribu- nical units, comprising chief commis- sonal interaction, which ends up mak-
nal or high court will be filed in the sioner level officers, which are tasked ing the issue more complex," he said.
state where the assessee resides.
with providing officers with legal and The commissioner has the power to
Though all appeals till the Commis- sectoral advice. confirm, reduce, enhance or annul the
sioner of Income Tax (Appeals) level
Besides, personal hearing may be al- existing order and if taxpayers fail to
will go faceless, personal hearing might lowed in certain cases through video- convince the commissioner, the
be allowed via video-conferencing in conferencing, after approval of the assessees may not get relief. "The risk
some cases after approvals from des- principal chief commissioner (PRCCIT) of enhancement or confirmation of tax
ignated senior officers.
or chief commissioners of income tax demand is substantial," Maheshwari
CIT (Appeals) is the first level of appeal (CCIT). said. T

24 | 2020 | SEPTEMBER | BANKING FINANCE