INCOME TAX
INSTRUCTION NO. 1921/1995
Dated: January 23, 1995
The Board has been stressing the need for reducing litigation and for filing appeals before the Income-tax Appellate Tribunal selectively, and only in cases where proper justification exists. Even though the number of departmental appeals filed before the Tribunal has registered a slight decline in 1993-94 as compared to 1992-93, the position continues to be alarming (39605 appeals were filed by the Department in 1993-94 as against 30729 appeals by the assessees). A stricter compliance of the Board's Instructions is necessary to further restrict the filing of the Departmental appeals.
2. The Commissioners of Income-tax should ensure that departmental appeals before Income-tax Appellate Tribunal are filed only after due care and scrutiny and after taking into account Board's Instruction No. 1493 (F.No. 279/199/82-ITJ dated 18-11-82) providing that orders of the CIT (Appeals) on questions of fact should be accepted by the Commissioner unless the findings are perverse. Moreover, the monetary limits presently provided for by Board's Instruction No. 1903 (F.No. 279/116/92-ITJ dated 28-10-92) and as clarified vide Board's letter F.No 279/116/92-ITJ dated 8-9-92 (Printed at P. 167 of Tax Bulletin Volume 21 July-Sept., 1992) require to be strictly adhered to. It is reiterated that a conscious effort is required to ensure reduction in litigation.
3. The CCITs/DGITs may recall that Board's Instruction No. 1894(F.No. 279/212/91-ITJ (Pt) dated 16-6-92) provided for a monthly review by the CCITs/DGITs of all appeals before the Tribunal on questions of fact and at least 10% of the remaining appeals. The scrutiny was to be completed within the succeeding report to the Board. The effect of the monthly review was discussed in the Conference of the Chief Commissioners and Directors General of Income-tax held on 5th and 6th November, 1992 and it was concluded that the review had a salutory effect on reducing further litigation. A watch by the CCITs/DGITs would serve as an effective deterrent. Board's letter F.No. 369/23/92-ITCC dated 16-12-92, while conveying the major decisions of the Conference, reiterated the importance and necessity of the review.
4. The Board is not receiving the quarterly reports of the review carried out by the CCITs/DGITs. These reports were required to be submitted as per Board's Instruction No. 1894 dated 16-6-92 (supra) in statistical form, by the end of the following month. A consolidated report in statistical form containing the results of the review for the four quarters ending 31-3-94, 30-6-94, 30-9-94 and 31-12-94 be submitted to the Board by 28-2-95. Thereafter, the quarterly reports as specified in Instruction No. 1894 dated 16-6-92 should be submitted to the Board positively by the end of the following month.
5. The contents of this Instruction may be brought to the notice of all officers in your region.