The Hindu : Business : System of tax credit needs reform

Online edition of India's National Newspaper
Monday, Sep 03, 2007
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Business

System of tax credit needs reform

Our client X is a partnership firm based in Chennai having been incorporated in the year 2004. We had applied for PAN and the same was allotted to them by BSDL. Subsequently two years returns resulting in refund have

also been filed with the IT Department. When the assessee did not receive the refund in excess of Rs. 1 lakh after a lapse of more than a year, we enquired into the matter and the assessing officer informed that the system is not able to process the return as the assessing officer having jurisdiction over the assessees with such PAN Numbers is situated somewhere in West Bengal as per the PAN data generated by the NSDL. It is indeed surprising as to how the assessing officer of West Bengal is having jurisdiction over the assessee when the assessee does not have any place of business in West Bengal. Even the address mentioned in the PAN application was Chennai address only. When we approached the NSDL people, we were told that they don’t have any control over the matter and the solution lies in getting the PAN migrated from West Bengal to Tamil Nadu, which only the assessing officer is authorised to do. In turn, the assessing officer expressed his helplessness not knowing which the assessing officer in West Bengal is to be contacted for migrating the PAN. It seems that both want to shirk their responsibility and are merely passing the buck. It is the poor taxpayer, who is being victimised in the process. We shall be greatly obliged if you could show us the way to get the refund money from the Department.

Refunds or adjustments on the basis of tax deductions are delayed for many reasons. The reason given by the reader is not an isolated one. Probably it is one of the teething troubles, which would require to be set right in due course.

Meanwhile, the assessee may complain to the next superior officer about the delay in refund and if the remedy is not forthcoming within a reasonable time, the matter can be taken up with Ombudsman.

A writ is the only other remedy. Income-tax Department, I am sure would be trying to solve the problem hopefully before the departmental remedies suggested are exhausted.

S. RAJARATNAM

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