MHA ISSUES REVISED GUIDELINES FOR LOCKDOWN 4.0

MHA Issues Revised Guidelines for Lockdown 4.0

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Key highlights

> Tax department is not silent during COVID-19 ;

> CBDT asked officers to not issue notices for now ;

> Collect data that will help settle pending litigation ;

> Using the lockdown to build stronger cases against defaulters.

Overview

Due to this COVID-19 outbreak, whole country is lockdown except for few establishment working under essential services/ goods and other private organizations with strict instruction/ guidelines. During this COVID-19 and lockdown period, government instructed Tax Officers to collect, prepare and analyze the matters related to Tax Disputes.Further, the Central Board of Direct Taxes (CBDT) has also directed to the tax officers to collect data related to pending litigation and stop issue any notices for now. That will help settle half the pending litigation.

Tax issues would be crucial

Due to this COVID – 19 pandemic disease and lockdown extension, identifying issues in all major tax issues would be crucial during next three months. The tax demands may become more in-depth and lead to more companies paying up.

Comment by Mr. Rahul Garg, partner, Asire Consulting : “The focus is more on identification and strong preparation of cases which are worth picking up for reassessment.”

Why Strong preparation required against defaulters ?

> Many cases was challenged in the courts on various grounds.

> The revenue department has not had a very good run with the success rate in tax litigation.

> Currently, there are about 5 lakh direct tax cases pending in various appellate forums — Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Court and Supreme Court.

> The tax department loses about 65% of all the cases at various forums.

> Planning to focus on the large litigation that could impact their revenues.

Kindly note that : CBDT has also directed the senior tax officers to dispose off all the applications filed by trusts received by March end this year.

So, Tax Defaulters Be Alert.

Source : Various News Articles

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Author : CS Lalit Rajput

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