Taxpayers who have submitted their application to the Settlement Board cannot take it back. The taxpayers who had petitioned for settlement by the High Court will not be required to make a separate application to the Board for settlement.
The Union Finance Ministry has given a big relief regarding the pending tax case. The Finance Ministry has said that if anyone has a case regarding pending tax, then an application can be made to the Interim Board of Income Tax by 30 September to resolve it. This moratorium is available to such taxpayers whose case is pending in the Income Tax Settlement Commission (ITSC).
The Finance Act, 2021 has amended certain provisions of the Income Tax Act, 1961. Under this, the work of ITSC has been stopped after February 1, 2021. The amendment also states that no tax settlement case shall be filed with ITSC after February 1, 2021. The Finance Bill, 2021 was laid on the table of the Lok Sabha on this date. Since then the operation of ITSC has been stopped. Now the pending cases will be sent to the Interim Board of Income Tax for settlement.
Will be settled in the interim board
In view of this, an ‘Interim Board of Settlement’ has been created to settle all the matters related to tax till January 31, 2021. Now all the pending cases will be placed before this board and will be settled. The Finance Ministry has said that whatever are the matters related to ITSC, they should be taken to the Settlement Board. For this, taxpayers will have to apply to the board. Then the pending tax case will be heard on that application and will be settled from there.
Taxpayers got this facility
The government has received information that till February 1, there are many such taxpayers whose tax settlement application had reached the advanced stage in ITSC. Some taxpayers also went to the High Court and requested in the petition that their applications for settlement be accepted. In some cases, the High Court, giving relief to the taxpayers, directed the ITSC to take the application even after February 1. Due to this some uncertainty was being seen in the matter of tax settlement.
This is how tax will be settled
Now the government has said that in the case of pending cases, taxpayers are being given an opportunity to apply till September 30, giving relief of settlement. However, there is a condition that taxpayers who are considered eligible to apply for settlement by January 31, 2021 and whose application deadline was till January 31, will be able to take advantage of this facility. Such an application will be considered as pending and the tax case will be settled through the Interim Board. It has also been said that taxpayers who have submitted their application to the Settlement Board cannot take it back. The taxpayers who had petitioned for settlement by the High Court will not be required to make a separate application to the Board for settlement.
