Letter [DIT(S)-III/DMFortnight/2012-13], dated 3-9-2012

What this is

Letter [DIT(S)-III/DMFortnight/2012-13], dated 3-9-2012 was issued by the Central Board of Direct Taxes on 3 September 2012. Its subject is Demand Management Fortnight- Standard Operating Procedure (SOP).

What it does

Declares 3 to 14 September 2012 a Demand Management Fortnight and sets the drill for it. Beyond the action points in the Standard Operating Procedure already uploaded on the IRS website and itaxnet on 29 August 2012, each Chief Commissioner (CCA) or Chief Commissioner location must create a single window clearance cell to receive, acknowledge and monitor grievances about incorrect arrear demand communicated or adjusted, with a nodal officer of Joint Commissioner rank or above as the single point of contact and his contact details publicised, and with taxpayers not to be sent directly to Assessing Officers. That cell is also to re-verify demand in-house when CPC signals that a refund is being processed, without contacting the taxpayer. All arrear demand grievances are to be resolved within thirty days by the nodal officer under the Chief Commissioner's personal supervision, and a compliance report was to reach the Zonal Member by 20 September 2012.

Why it was issued

The Directorate records that demand uploaded was in most cases incorrect and incomplete, having been uploaded by Assessing Officers without due diligence and verification, that adjustment of such demand against refunds was causing public grievances, and that correct uploading of demand not yet on the CPC portal was a Central Action Plan target for financial year 2012-13 to be met by 30 September 2012.

Who it reaches

• Assessees whose refunds were adjusted against incorrect arrear demand
• Chief Commissioners and the nodal officers heading the single window cells
• Assessing Officers whose uploaded demand is to be cleaned up
• CPC, which flags refunds under processing for re-verification

The instrument, as the Board published it

Demand Management Fortnight- Standard Operating Procedure (SOP)
Letter [DIT(S)-III/DMFortnight/2012-13], dated 3-9-2012
The issue of demand management continues to remain an area of grave concern. It has been found that in most of the cases demand uploaded is incorrect and incomplete. Such demands have been uploaded by AOs without due diligence and verification. Adjustment of such demands against refunds is leading to public grievances. It is therefore imperative to correct the demand data base and quickly rectify cases, where wrong adjustments have taken place.
It has also been ascertained that the demand in a large number of cases has still not been uploaded on the CPC Portal, Correct uploading of such demand is a target in the Central Action Plan for FY 2012-13 to be accomplished by 30-9-2012. To address public grievances it has been decided that a special drive be launched to rectify affected cases and to correct the demand uploaded. Accordingly, as announced during last video conference held on 23-8-2012 with all CCsIT/DGIT, to hold the fortnight beginning 3rd Sept 12 and ending 14th Sept 12 as Demand Management Fortnight. Standard Operating Procedure with Manuals has already been uploaded on IRS website as well as on itaxnet on 29-8-2012.
2. Thus, apart from the action points listed in Standard Operating Procedure as released, the CCsIT are required to take following measures:
a. Create a Single window clearance cell to receive, acknowledge and monitor grievance petition pertaining to demand adjustment at each CCIT(CCA)/CC!T location for all grievances relating to incorrect arrear demand communicated/adjusted. (A nodal officer of the rank of JCIT or above to be created as single point of contact for taxpayers with due publicity of contact details with caution that taxpayers not be asked to directly approach the Assessing Officers), Going forward, this cell will also take proactive actions based on the communication received from CPC, so that in-house re-verification is mandatorily carried out in cases of refunds being processed in CPC, without contacting the taxpayer.
b. All arrear demand grievances to be resolved within 30 days by the nodal officer, CCsIT to personally supervise and monitor progress of these cases.
3. It is impressed upon all CCsIT to ensure that concerted efforts are made by officers to clean up the demand databases. The Compliance Report as outlined in SOP for the actions taken and achievements during the fortnight may be submitted positively by 20-9-2012 to the respective Zonal Member.
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What to watch

• This is a letter of the Directorate of Income Tax (Systems) to field authorities, not a circular of the Board.
• The fortnight itself, and the 20 September 2012 reporting date, are long past; what survives is the pattern of taking an arrear demand grievance to the nodal cell rather than the Assessing Officer.
• The thirty-day resolution norm is an internal target, not a statutory limitation.
• The Directorate's own admission that most uploaded demand was incorrect and unverified is useful when an old arrear demand is pressed against a current refund.

Where you meet it

You meet it where an old arrear demand surfaces against a current refund and the grievance has to be lodged with the Chief Commissioner's single window cell.

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