The CBDT Circular No. 14 (XL-35) dated 11/04/1955 bars the income tax department from exploiting ignorance of taxpayers.

As the circular the department must not take advantage of ignorance of assessee to collect more tax than what is legitimately due.

In 1995 complaints were received that while ITO’s are prompt in making assessments likely to result into demands and in effecting their recovery, they are lethargic and indifferent in granting refunds and giving reliefs due to assessees under the Act. 

“Dilatoriness or indifference in dealing with refund claims (either under s. 48 or due to appellate, revisional, etc., orders) must be completely avoided so that the public may feel that the Government are actually prompt and careful in the matter of collecting taxes and granting refunds and giving reliefs,” the circular said.

The circular said that the officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. 

This attitude would, in the long run, benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Department.

Circular Details

Circular No. 14 (XL-35) 

Date: 11/04/1955

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