Circular No. Note, dated 21-1-2013

ITAT's note on department's General Grievances in the matter of representation and adjudication of cases fixed before each bench of ITAT Delhi

What this is

Circular No. Note, dated 21-1-2013 was issued by the Central Board of Direct Taxes on 21 January 2013. Its subject is ITAT's note on department's General Grievances in the matter of representation and adjudication of cases fixed before each bench of ITAT Delhi.

What it does

Changes how the Delhi Benches of the Income-tax Appellate Tribunal list their cases, on a grievance from the Commissioner of Income-tax (Departmental Representative) (Administration). New appeals are no longer to be fixed on the sixtieth day of filing; they are to be kept pending and listed in due course. The number of cases fixed before each Bench on a day is not to exceed twenty, apart from covered or group matters, and where the regular cases listed on a day are well above twenty, the excess is to be adjourned to the next available date after the order of the Vice President is taken. The department's letter was to be circulated to the Members of the Delhi Benches so that the grievance is before them.

Why it was issued

The sixty day listing policy had been framed when the pendency of the Delhi Benches was around five thousand appeals; by 1 January 2013 it had risen to 11,899, institution was running well ahead of disposal, and only six of the nine sanctioned Benches were functional, so the policy had become impracticable and was also causing the day to day variation in cause list size.

Who it reaches

Appellants and their counsel before the Delhi Benches of the Tribunal
Departmental Representatives appearing before those Benches
Parties whose newly filed appeals were expecting a sixtieth day listing
Members of the Delhi Benches settling their cause lists

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

ITAT's note on department's General Grievances in the matter of representation and adjudication of cases fixed before each bench of ITAT Delhi
NOTE, dated 21-1-2013
The CIT-DR (Admn.), vide letter dated 27th December, 2012, (Annexure) has expressed their grievance with regard to cases fixed before each Bench, which usually exceed 20. She has stated that due to paucity of manpower with the Department and the large number of fixation, it becomes very difficult for the Departmental Representatives to handle those cases.
2. The policy of fixing the new appeals on the 60th day of filing of appeal was framed when the total pendency of Delhi Benches was reduced to around 5,000 appeals. However, now the pendency of Delhi Benches as on 1st January, 2013 has increased to 11,899. From the last several months, the institution of appeals is much more than the disposal. Out of the nine Benches sanctioned for Delhi, only six Benches are functional. In the above circumstances, the fixation of new appeals on the 60th day of the filing of appeal has become impracticable. Moreover, the variation in the number of appeals fixed for hearing each day is mainly because of fixation of new appeals on the 60 day. In the above circumstances, in my opinion, the policy of fixing the new appeals on the 60th day of the filing of appeal should be dispensed with for the time being. These new cases are to be fixed in regular course.
3. Accordingly, the following directions are issued:-
(i) The new appeals should not be fixed on the 60th day of filing of appeal but should be kept pending and be fixed in due course.
(ii) It is to be ensured that the cases fixed before each Bench every day should not exceed 20 except covered or group matters. If on any day the regular cases fixed are much more than 20, then, after taking the order from the Vice President, the excess cases should be adjourned to the next available date.
4. The above letter of the Department is to be circulated to the learned Members of Delhi Benches so that they can keep in mind the grievance expressed by the Department.

ANNEXURE
General grievances of the department in the matter of representation and adjudication in the ITAT
Letter [F. No. CIT(DR)(Admn.)/A- Bench/ITAT/2012-13/780], dated 27-12-2012
It is to bring to your kind notice that we have been running a general crisis in the deployment of man power to argue the cases before the Hon'ble benches. This is an addition to the general problems arising out of transfer etc.
Therefore, cases are assigned to DRs depending on the availability of man power, which often is disproportionate to the number that can be handled by them. So we are forced to apply for adjournment in some cases in each Bench. It has been kindly instructed in a circular by your good self that the number of cases in a day per Bench should not be exceed 20, apart from the covered matter and new cases where department is expected to get adjournment liberally.
But it is often noticed that not only the cases fixed per bench are more in number but cases are found added at the last minute at the end of the CIT, giving very less time for the DRs to prepare the cases.
It is further noticed that the arguments of the DRs are often not properly recorded to give justice to the stand of revenue and in any case short and not touching upon any aspect of the argument at all. This makes the revenue lose salient points which can be profitably taken up before the higher court.
This apart, in some of the orders, adverse judgment have been rendered against revenue on the ground of non-representation, even while making adverse comments on the functioning of the department (in its representation before the ITAT). You may kindly appreciate that each bench is manned by a CIT DR and a Sr. DR and they are not supposed to argue cases in other benches without instruction from higher authorities.
Therefore, a particular DR may be absent on a particular day which may lead to adjournment application for these cases listed before that bench, irrespective of the number of CITs and the Sr. DRs. on that day.
Therefore, such adverse comment reflecting upon the functioning of the department is best avoidable considering the ground realities. Worse it is noticed that in some of the judgments the adverse comments have been given despite proper filing of adjournment petition by the DRs.
It is therefore requested that the above grievances of the DRs, deeply felt at their level may be taken up for redressal in the right earnest and the Hon'ble members apprised of the issues. It is also requested that adjournment should be done on merit even in an absence of a party which will be in line with judgments of the Hon'ble jurisdictional High Court. Thanking you,
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What to watch

This is an internal administrative note of the Tribunal, not a circular of the Board, and it confers no right on a litigant.
It governs the Delhi Benches alone.
The sixty day listing policy is dispensed with 'for the time being', so it is a measure of the moment rather than a settled rule.
The annexed letter is the department's own list of grievances, including on the recording of arguments and on adverse comments for non-representation; those are complaints made to the Tribunal, not directions issued by it.

Where you meet it

When an appeal newly filed before the Delhi Benches is not listed on the sixtieth day, or when a matter is put over because the day's cause list ran past twenty.

← Press Release, dated 11-2-2013 · Press Release, dated 18-1-2013 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.