I-T dept to stop refunds based on bogus investments; sets up panel to check high-pitched assessments
Regretting that people are claiming bogus refunds, CBDT chairman Sushil Chandra said it was time that people change their mentality and pay their due share of taxes honestly.
New Delhi: The Income Tax department has introduced additional checks to prevent outgo towards bogus refund claims based on fraudulent investments shown in tax return forms, Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said on Wednesday.
The CBDT has set up a three-member committee to deal with the issues concerning "high-pitched" assessments wherein irrational tax demands are raised by tax officers, he said.
Regretting that people are claiming bogus refunds, Chandra said it was time that people change their mentality and pay their due share of taxes honestly.
During the search operations in Mumbai, Bengaluru and certain parts of Punjab, the I-T department discovered that some fraudsters were encouraging tax payers to claim refunds based on fictitious investments under 80C and towards housing loans.
"When we took that risk parameter and found from one I P address so many refunds are being filed which are of same pattern, so some searches took place. So we have put another risk parameter into our system that if some fraudulent return is being filed then that refund has to be stopped," Chandra said addressing an industry event here.
Referring to issues concerning "high-pitched" assessment, Chandra said that CBDT has already set up a committee to look into such cases.
"Many people came to us saying that our assessment is very high pitched, so we made 'high-pitched' assessment committee, which comprises of three principal commissioners wherein if you feel that your assessment is high pitched, you can approach the committee," he said.
A high-pitched scrutiny assessment case is one where it is found that the addition of income was made on frivolous grounds, non-observance of principles of natural justice, or non-application of mind and gross negligence by the assessing officer in deciding a case.
If the committee decides that the assessment is "high-pitched", it would stay the demand and steps would be initiated against the assessing officer.
"Last year, we have transferred more than 12 assessing officers who were found indulging in high pitched assessments," Chandra said.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
The amount will be borrowed by the Centre under the Special Window in appropriate tranches and will be passed on to states in back-to back loans, said a finance ministry statement. However, it did not say who will service the interest and principal payments
GST Council to discuss compensation for states for third time tomorrow; decision on setting up group of ministers likely
In its previous meeting last week, the Council had decided to extend the surcharge on taxes on luxury goods beyond June 2022 but failed to reach a consensus on ways to compensate states for loss of tax revenue
GST Council to extend surcharge on taxes over luxury goods, fails to reach consensus on issue of states' compensation
The panel, which decides on tax rates and structure of the GST, will meet again on 12 October to thrash out the state compensation issue