Disposing demonetisation cases: CBDT sets June 30 deadline for assessment.

The Central Board of Direct Taxes (CBDT) has set a deadline of June 30 for disposing of all cases related to the demonetisation period by framing assessment orders against taxpayers. In the April-June quarter, the income tax department (ITD) will also approach the National Company Law Tribunal (NCLT) to seek restoration of ‘struck off’ companies so as to take appropriate action against them.

As reported earlier by FE, nearly 80,000 assessees have still not replied to notices sent by the tax department after those individuals were found to have deposited cash during the demonestisation period that was not commensurate with their profile.

Further, nearly 3 lakh companies were struck off from the registry by the Ministry of Corporate Affairs during the last three years due to violation of the Companies Act. However, the ITD has started looking into possible money laundering activities of these companies. Any enforcement action would require restoration of these firms.

These details have emerged from the interim action plan prepared by the CBDT, the policy making body for ITD. Additionally, the department has also been given specific goals for searches, assessment orders and recovery to be achieved by June 30.

The action plan for first quarter also directs chief commissioners to allow disposal of appeals of more than Rs 10 lakh if a commissioner (appeals) does not have adequate number of appeals of up to Rs 10 lakh, so as to meet the target of 150 appeals by June 30.

Further, for verification of non-PAN or demonetisation /FATCA/CRS/special pilot project-related data, the CBDT has set a target of verification of minimum eight cases per month for each deputy director or assistant director and 17 cases per month for each income tax office, the action plan stated.

The board has set the June 30 deadline for disposal of assessments in at least 25 cases (20 in international taxation) per assessing officer of limited scrutiny, reopened assessment under Section 147 and demonetisation-related cases. It has asked officers to complete these assessments through the e-processing facility.

Courtesy :- Financial Express.

#IncomeTax