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News INCOME TAX

  • Sep 08, 2021
  • Taxpayers can file applications for settlement till September 30

    In order to provide relief to the taxpayers who were eligible to file applications as on January 31, 2021, but could not file the same due to cessation of the Income Tax Settlement Commission (ITSC) through Finance Act, 2021, the Central Board of Direct Taxes (CBDT) has allowed them to file applications for settlement till September 30.

    The Finance Act, 2021 has amended the provisions of the Income Tax Act, 1961 to close ITSC with effect from February 1, 2021. In order to dispose off the pending settlement applications as on January 31, the CBDT had constituted Interim Board for Settlement on August 10.
    It has been represented that a number of taxpayers were in advanced stages of filing their application for settlement before the ITSC as on February 1. Further, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted. In some cases, the High Courts have given interim relief and directed acceptance of applications of settlement even after February 1. This has resulted in uncertainty and protracted litigation.

    So, CBDT has decided to give an opportunity to taxpayers to file applications subject to conditions: the assessee was eligible to file application for settlement on January 31, 2021, for the assessment years for which the application is sought to be filed; and all the relevant assessment proceedings of the assessee are pending as on the date of filing the application for settlement.

    Legislative amendments in this regard shall be proposed in due course, the CBDT said.