Revision

Question 1

Revision by chief commissioner process (5)

Answer 1

1. Chief Comm. may
   - on his own motion, or
   - on application by taxpayer for revision,
2. Call for record of any proceedings relating to issuance of
   - an exemption
   - lower rate certificate
   with regard to
   - collection or deduction of tax at source under ITO
3. Record of such proceedings called, order passed by his subordinate authority
4. After any inquiry, Chief comm considers that order requires revision
   - he may make such order as he may deem fit
5. But, he shall give taxpayer the opportunity of being heard

Question 2

Powers of tax authorities to modify orders etc (5)

Answer 2

1. Where question of law is decided by High Court/Appellate Tribunal in case of a taxpayer
2. CIR may proceed to amend the assessment, to the extent of needing revision due to decision of High Court/Appellate tribunal
3. CIR shall ignore the fact that:
   - appeal is preferred or
   - application for reference is made against the order of High Court/Appellate Tribunal
4. Where decision of HC/AT is reversed/modified. CIR may modify the asmt in which he said the decision was followed
   - within one year of date of decision
5. ALL TIME LIMITS FOR MAKING ADJUSTMENTS SHALL BE IGNORED WHILE MAKING SUCH MODIFICATIONS

Question 3

Agreed assessment in certain cases (4)

Answer 3

1. Taxpayer in response to notice of Amd asmt
   - intents to settle his case
   - file offer of settlement in prescribed form to asmt oversight committee
   - files reply to CIR
2. Committee after examining offer
   - may call for record of case
   - afford opp. of being heard to tax payer
3. and then decide to
   - accept
   - modify
   the offer
4. though consensus and communicate its decision to TP

Question 4

What should the taxpayer do after he is satisfied with the decision of the committee over his offer? (4)

Answer 4

1. deposit amt of tax payable + default surcharge + penalty as per committee’s decision
2. CIR shall amend asmt in accordance with committee’s decision after payment of the above
3. taxpayer shall waive right to appeal against such amended assessment
4. No further proceedings shall be undertaken in respect of issues decided by committee
   (unless tax has not been deposited)

Question 5

What happens where committee cant arrive at consensus for offer of taxpayer or tax payer is not satisfied with committee’s decision?

Answer 5

1. Case referred back to CIR for desicion on basis of reply of TP to notice for amendment of assessment

Question 6

Members of committee having jurisdiction over the taxpayer

Answer 6

1. Chief Commissioner Inland Revenue
2. Commissioner Inland Revenue
3. Additional Commissioner Inland Revenue