SRINAGAR: In an effort to address pressing tax-related challenges faced by Kashmir’s business community, the Kashmir Chamber of Commerce and Industry (KCCI) on Wednesday held an interactive meeting with senior officials from the Income Tax Department. The session was chaired by Lal Chand, Chief Commissioner of Income Tax (CCIT), Amritsar, and Shri Vikram Sahay, Principal Commissioner of Income Tax, Srinagar.
The KCCI delegation was led by Senior Vice President Ashiq Hussain Shangloo and included Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Bakshi, Past President Mushtaq Ahmad Wani, along with Executive Committee members Tauseef Ahmad Bhat, Altaf Ahmad Tramboo, and member Muhammad Ashraf Mir. The meeting, held in a cordial atmosphere, was attended by chartered accountants, tax consultants, and prominent members of the business community.
Welcoming the visiting dignitaries, Ashiq Hussain Shangloo emphasized the significance of open dialogue in resolving longstanding tax-related issues. “This initiative reflects our collective commitment to addressing concerns and fostering a cooperative environment for business growth and compliance,” he said.
During the discussions, KCCI highlighted several key concerns, including the freezing of bank accounts, which they said has severely impacted traders and the general public. Many businesses have faced situations where their deposits were classified as unexplained credits, resulting in tax demands beyond their financial capacities. The Chamber urged the authorities to adopt a more lenient approach by granting stays on such demands at a reduced deposit rate, below the standard 20%, in accordance with previous judicial rulings.
The issue of delayed processing of appeal effects was also raised, with KCCI pointing out that unresolved appeals have led to substantial outstanding tax demands. The Chamber called for the speedy disposal of these appeals to ease financial pressures on taxpayers.
Another major concern discussed was the backlog of rectification applications under Section 154, which KCCI said has caused undue inconvenience to many taxpayers. The Chamber requested expedited processing to ensure timely resolutions.
KCCI also drew attention to the misreporting practices by government deductors, who often deduct TDS on amounts inclusive of GST. This, they said, leads to mismatches in taxable turnover and discrepancies in Form 26AS, blocking working capital and triggering prolonged litigation with the State Taxes Department. To address this, KCCI proposed the organization of awareness programs in collaboration with senior officials from the Income Tax Department, State Tax Department, and GST deductor agencies.
Additionally, KCCI advocated for the establishment of a camp office in Srinagar headed by CIT Exemptions and CIT International Taxation, aimed at raising awareness and providing direct support to local businesses. The delegation also stressed the need for the timely disposal of pending appeals before CIT (Appeals), which they said would improve the efficiency of the tax resolution process.
Responding to the concerns, CCIT Lal Chand and Pr CIT Vikram Sahay assured the delegation of their full cooperation in addressing the issues raised. They also mentioned that they would take up the demand for increasing the number of tax wards in Kashmir with higher authorities.
The meeting concluded with KCCI thanking the Income Tax Department for facilitating the interaction and reaffirming its commitment to continued dialogue aimed at resolving the business community’s concerns.
