The Income-tax Settlement Commission has been abolished with effect from 1st February 2021 and no application for settlement will be accepted from that date. Clauses 54 to 65 of the Finance Bill, 2021 are relevant to deal with the consequential arrangements proposed to be made to deal with the pending settlement applications. A new institution, to be known as the Dispute Resolution Committee (DRC in short), is proposed to be set up by adding a new Chapter XIX-A, with only one section 245MA, to lay down its constitution and scope of work. It is not a substitute for the Settlement Commission but an institution within the Income-tax Department to resolve disputes arising during the course of regular assessment proceedings. We propose to deal with these two subjects separately in the following paragraphs.
Source: Published in AIFTP Journal for the month of Feb., 2021 at P. No. 29
The Income-tax Settlement Commission has been abolished with effect from 1st February. 2021 and no application for settlement will be accepted from that date. Clauses 54 to 65 of the Finance Bill, 2021 are relevant to deal with the consequential arrangements proposed to be made to deal with the pending settlement applications. A new institution, to be known as the Dispute Resolution Committee (DRC in short), is proposed to be set up by adding a new Chapter XIX-A, with only one section 245MA, to lay down its constitution and scope of work. It is not a substitute for the Settlement
Commission but an institution within the Income-tax Department to resolve disputes arising during the course of regular assessment proceedings. We propose to deal with these two subjects separately in the following paragraphs.
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Posted on: March 3rd, 2021
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