Income tax disputes stuck in endless loop: Faceless CIT (A)s are issuing repeated notices but no final judgement, preventing taxpayers from taking further action - The Economic Times

Economic Times · 8d ago

Income tax disputes stuck in endless loop: Faceless CIT (A)s are issuing repeated notices but no final judgement, preventing taxpayers from taking further action - The Economic Times

Medial

India's Faceless Appeal Scheme, launched to enhance transparency in tax administration, now faces challenges with increasing backlogs and the repetitive issuance of identical notices, undermining taxpayer confidence. Despite the digital approach intended to build trust, the scheme's execution falters due to limited capacity and systemic issues, leaving taxpayers frustrated. Improving the system requires technological interventions, clear guidelines, and a focus on maintaining procedural integrity to restore faith and efficiency within the tax dispute resolution process.

AI-led regulatory action to have human decision-making at core

Livemint · 2y ago

AI-led regulatory action to have human decision-making at core

Medial

The Ministry of Corporate Affairs in India is implementing a tech-driven compliance system with AI and machine learning capabilities. However, designated officials will still be responsible for issuing notices to non-compliant companies, rather than the system sending mass emails on its own. The upgraded system will use AI to send automated reminders about compliance due dates, similar to how the income tax department sends reminders to taxpayers. Human decision-making will still be involved before issuing notices, ensuring a human-centric approach to the compliance regime.

New invoice system in works to curb automated notices

Economic Times · 1m ago

New invoice system in works to curb automated notices

Medial

The Central Board of Indirect Taxes and Customs (CBIC) in India is developing a new invoice management system to prevent automated GST mismatch notices and reduce unnecessary litigation. This initiative aims to address the 200,000 GST mismatch notices issued annually, involving Rs 10 lakh crore in disputes. The system will allow taxpayers to correct discrepancies on the GST portal, alleviating the burden of providing explanations for mismatches in various GST forms, thereby improving the litigation management process.

Startup funding winter takes a toll on vendors

Livemint · 1y ago

Startup funding winter takes a toll on vendors

Medial

Indian startups such as Byju's, Dunzo, and others are facing disputes with vendors over delayed payments, potentially due to financial constraints. The startups argue that vendors have deviated from contract terms or there are contractual disagreements, while vendors claim that startups are disputing invoices, questioning pending payments, seeking discounts, or becoming unresponsive. As funding becomes scarcer during the funding winter, payment delays and defaults by startups have increased. Vendors can take legal action, including issuing notices, filing civil suits, and even initiating insolvency proceedings, to recover their dues.