ITBA Network Failures and CPC Delays: Serious Risk to Time-Barred Income Tax Assessments

Background and Context

The Income Tax Gazetted Officers’ Association has once again brought to the notice of the Central Board of Direct Taxes that ongoing technology and system bottlenecks are seriously hampering assessment work in the closing days of the Financial Year. Despite earlier flagging of these concerns and some partial improvements, officers across Faceless and Jurisdictional charges are still struggling to complete statutory time-barring tasks within the prescribed deadlines.

This representation follows an earlier communication dated 02.02.2026 relating to an artificial internal deadline fixed by the Principal CCIT, NaFAC, New Delhi, discussed in the video conference held on 29.01.2026. Although a few corrective steps have been taken since then, the ground reality shows that system-related disruptions remain substantial and are now critically impacting the last fortnight’s workflow for time-barring actions.

Ongoing System Challenges During the Crucial Year-End Period

Persistent Problems Despite Partial Improvements

The Association acknowledges that the Systems Directorate and related authorities have undertaken some rectification measures after the earlier representation. System responsiveness has improved to a limited degree. However, even with these changes, officers continue to report:

  • Frequent delays in executing basic statutory functions
  • Inability to conclude time-sensitive assessments
  • Rising risk that some cases may lapse and become time-barred purely because of technology failures rather than any lapse on the part of the field formations

Delays in Issuing Digitally Signed Communications

One of the most fundamental issues highlighted is the difficulty in issuing standard letters and statutory notices, which are required to be digitally signed. Officers report that:

  • Digital signature functionality is often unstable or non-responsive
  • Routine communications that should ordinarily be completed the same day are getting pushed back by several days
  • These delays have a cascading impact on the timelines for hearings, submissions, and final assessment orders

In the context of time-barring dates, even a delay of a few days in issuing a notice can jeopardise the entire assessment cycle.

Technical Issues with Video Conferencing Hearings

The current framework for providing hearing opportunities to the assessee through video conferencing continues to suffer from technical glitches. Officers are facing:

  • Connectivity failures or platform crashes during scheduled hearings
  • Difficulties in initiating or joining video conferences from departmental systems
  • Disruptions that force repeated rescheduling of hearings

This not only affects principles of natural justice but also compresses the already narrow window for completing assessment orders before the limitation date.

Long-Pending Cases at CPC Without Closure

The Association has flagged serious concerns about cases that have been sent to CPC for computation and finalisation but remain open on the system for inordinately long periods.