Whether grievance mechanism for High Pitched assessments is sheathed to decide the fate of stay of demand applications and bolster recovery mechanism ? Instruction No. 17/2015 dated 09-11-2015

1. The CBDT has acknowledged that problem of high pitched and unreasonable assessments is persisting .
2. Committees from amongst Pr CIT, CIT(Judicial), CIT (DR), ITAT . AddllCIT(CCIT Hq) shall be member secy. Sr Most member shall be Chairman
3. A grievance made shall be immediately acknowledged
4. Separate record of grievances to be made
5. The Committee shall check grievance along
6. whether prima facie case of

a.       high pitched assessment

b.      non observance of natural justice

c.       Non application of mind

d.      Gross negligence

e.      Lack of Involvement

7. Whether addition is not backed by sound logic or reason , the provisions of law have grossly been misinterpreted, or obvious and well established facts have been ignored
8. If assessment is found to be unreasonable or high pitched, administrative action shall be taken and case shall be presented to appellate authorities .
9. Committee, however not to be treated as alternative /additional appellate channel
10. Committees to be formed till end of Nov 2015

1       11.   Disposal of grievance petition with in two months from the end of month in which grievance is made.

The appellants had collected certain amounts from their customers under the heading 'common area maintenance deposit', which was required to be utilized for maintenance of common area of the society, such as stairs, terrace, parking, water charges, municipal taxes, etc. Till the society is formed of the flat owners, the appellant would maintain a separate account of such collection and outgoings and transfer whatever balance amounts (with interest) available to the society. The amount was collected from the flat owners under the provisions of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, sale, management and transfer) Act, 1963. Cestat Mumbai in Goel Nitron Constructions[2015] 62 taxmann.com 333 JULY 7, 2015 following Kumar Beheray Rathi Appeal Nos. ST/137, 138, 139 & 140/2008 - Mum, dated 18-11-2013 held that no service tax is leviable on such one time maintenance charges till housing society is formed