The Central Board of Direct Taxes ( CBDT), in its action plan for the year 2014-15, has drawn up a time-bound and structured programme for disposal of appeals that are pending with the tax department.
If targets set in the action plan are achieved, disputed tax demands running into more than Rs 4,000 crore will be cleared during this fiscal.
According to the target set in the plan, 95,560 cases constituting 44% of the appeals pending with commissioners of income-tax (appeals) deal exclusively with transfer pricing cases, a separate target of clearing 150 cases per year has been suggested.
When taxpayers dispute the tax demands raised on them, a structured appeal process has to be followed. The first level of appeals lies with the commissioner of income-tax (appeals).
Other highlights of the confidential action plan include taking stern prosecution action, in certain instances, against wilful tax evaders and better monitoring of suspicious overseas transactions and NGOs.
In a bid to crack down on tax evaders, stern action will be taken in those cases where penalty under section 271(1)(c ) exceeding Rs 50,000 has been levied by the tax department and confirmed by the tax tribunal.
Cross-border transactions which seem suspicious will be closely monitored and tax authorities have been asked to obtain information from overseas jurisdictions, wherever deemed necessary.
India has entered into 89 tax treaties and, in addition, has 16 tax information exchange agreements in place with non treaty countries.
Receipt of gifts or debt in India or receipt of share capital or share application money by companies in India are some illustrations provided where information could be sought from officials in other countries.
(ET: July 2, 2014)