Ficci on Saturday welcomed the government's plan to modify the performance appraisal system of tax officers, terming it a major step forward towards a conducive tax environment.
The chamber said it appreciates the government's move to accept the suggestion given by the trade and industry body and is hopeful that it will improve the tax environment in the country and boost confidence level of the investors.
Prime Minister Narendra Modi had on Friday said that the I-T department will introduce a system of online scrutiny of returns and modify the performance appraisal proforma of officials with a view to motivating them to pass correct orders and also check corruption.
The industry body said it has been representing to the government over the years that assessing officers are issuing assessment orders confirming tax demands without a fair and judicious analysis of the merits of the issue and overlooking judicial precedents merely to achieve the ever elusive revenue targets prescribed for them by the government.
This is borne out by the fact that on appeal 70-80 per cent of the decisions of the Tribunal are delivered against the Revenue.
The unproductive exercise of issuing assessment orders in favour of Revenue and consequential recovery measures vitiate the tax environment and compel the assesses to litigate the matter in appeals to seek a just treatment of the tax issue.This is the primary reason for uncertainty in tax positions and unnecessary litigation, Ficci said.