CBDT allows taxpayers to file settlement application till Sep 30 – BusinessToday

Clipped from: https://www.businesstoday.in/latest/top-story/story/cbdt-allows-taxpayers-to-file-settlement-application-till-sep-30-306142-2021-09-07

While no application for settlement can be filed on or after Feb 1, 2021 as per the amended Finance Act, the government had constituted an Interim Board for Settlement to dispose of pending settlement applications.

CBDT said 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, 2021.CBDT said 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, 2021.

The Central Board of Direct Taxes (CBDT) on Tuesday gave additional time to taxpayers to file applications for settlement to the Interim Board for Settlement by extending the last date to do so till September 30.
 
The Finance Act, 2021, amended the provisions of the Income-tax Act, 1961, to provide that the Income-tax Settlement Commission (ITSC) ceases to operate with effect from February 1, 2021.
 
While no application for settlement can be filed on or after February 1, 2021 as per the amended Finance Act, the government had constituted an Interim Board for Settlement to dispose of pending settlement applications.
 
“In order to provide relief to the taxpayers who were eligible to file application as on 31.01.2021, but could not file the same due to cessation of ITSC vide Finance Act, 2021, it has been decided that applications for settlement can be filed by the taxpayers by 30th September, 2021 before the Interim Board…” the CBDT said in a statement.

Also Read: De Beers India foresees 2021 festive season to be one of the strongest in decade: MD Sachin Jain
 
However, the assessee can file settlement application during the extended period only if he/she was eligible to file the application on January 31, 2021. Besides, all the relevant assessment proceedings of the assessee should be pending as on the date of filing the application for settlement.
 
Explaining the reason for the extension, CBDT said 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, 2021.
 
“Further, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted. In some cases, the Hon’ble High Courts have given interim relief and directed acceptance of applications of settlement even after 01.02.2021. This has resulted in uncertainty and protracted litigation,” the statement said.
 
CBDT clarified that taxpayers who have filed settlement applications will not have the option to withdraw such applications as per the provisions of the Income-tax Act, 1961.
 
Besides, taxpayers who have already filed application for settlement on or after February 1 this year as per the direction of the various High Courts shall not be required to file such application again.

Also Read: Startups get only one-fifth of the amount from govt’s Rs 10,000-cr ‘Fund of Funds’

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s