The Hindu Business Line : I-T ombudsman

The Swiss Banking ombudsman’s website blurb — mistakes can happen, what matters is how you handle them — is bound to strike a chord with individuals having interface with public authorities. The Indian income-tax department’s initiative in this regard however does not seem to inspire much confidence in the public.

First, the Income-tax Ombudsman Guidelines, 2006 perpetuates the same mistake most of the government schemes are beset with — giving sanctuary to the departmental officers or, if they are not available, to officers from other departments of the government. Since he is not an appellate authority, he need not be a member of IRS.

Why an insider?

Instead of anointing an insider, a fair-minded and accessible public figure should have been envisaged as the suitable candidate. An insider is bound to be biased towards his own tribe thus defeating the very purpose of his appointment. And what are the complaints he is going to look into? Well, they are essentially those emanating out of official high-handedness and apathy. The complaints cannot be on matters that come under appellate jurisdiction.

In short, the ombudsman’s job is to smooth ruffled feathers and soothe frayed tempers. It is perfectly all right for one to approach the ombudsman against delay in issue of refund beyond the permissible time limit but how can he be allowed to approach him as envisaged and permitted by the guidelines when ‘first come first served’ principle is not followed while sending refunds. Pray how would the complainant know that the officer concerned had jumped the gun?

Similarly, lack of transparency in selecting cases for scrutiny assessment and non-communication of reasons for selection of a particular case for scrutiny can be complained against before the ombudsman. In all fairness, the department makes public its scrutiny criteria and, therefore, there should be no room for complaint on this score.

Perhaps, what is intended to be reported against is the high-handedness of the department in over-stepping its brief in targeting a particular person for scrutiny. Delay in allotment of PAN and in crediting TDS to one’s account can also be causes of complaint.

Administrative overlord

The ombudsman in short is envisaged as an administrative overlord, if one may say so. He has to try and bring the two parties at loggerheads around in a spirit of conciliation. He cannot crack the whip except that he can award a token compensation not exceeding Rs 1,000 payable out of the department’s budget and curiously not out of the pockets of the erring official.

The guidelines talks of the award not being binding on the department if the complainant does not accept the award in full and final settlement of his complaint. One is at a loss to understand the rationale behind this given the fact that there won’t be much any way in the award for the complainant to make him gloat. The order for expeditious disposal of refund application, for example, can at best be a possible slap on the wrist of the lethargic official.

Curiously, the ombudsman has not been vested with the power to curb graft in the department given the fact that often harassment of public normally starts when one refuses to play ball with the corrupt officers. It is true that Vigilance Commission takes care of graft but it would be idle to expect the ombudsman to deliver too much when his hands are tied and is powerless to crack the whip assuming he is willing to do so against his former colleagues in the department, fighting the natural bias that normally comes in the way.

(The author is a Delhi-based chartered accountant.)

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