Page 91 - DHC Budget Book 2021-22 Final
P. 91
7.22
Dispute Resolution Committee for small and medium taxpayers [Sec. 245MA] [w.e.f. 01-04-2021]
New Sec. 245MA is proposed to be inserted under new Chapter XIX-AA which shall empower CG to constitute one or more Dispute Resolution Committees (DRC) to resolve disputes of notified persons or class of persons opting for resolution of dispute arising from any variation in specified order on fulfilment of specified conditions. DRC shall also have power to reduce/waive penalty or grant immunity from prosecution under IT Act.
Clause (b) of Explanation to Sec. 245MA defines specified order as the order which Board may specify and where –
total income as per return of income filed is ≤ H 50 Lacs.
aggregate sum of variations proposed or made in order is ≤ H 10 Lacs
such order is not based on search initiated u/s 132 or requisition u/s 132A in the case of assessee or any other person or survey u/s 133A or information received under an agreement referred to in Sec. 90 or Sec. 90A
CG shall have power bestowed by sub-
section (4) to apply/exclude/modify/adapt any provisions of the IT Act for the purpose of giving effect to the Scheme. Such direction to be issued latest by 31-03-2023.
Following persons as per clause (a) to Explanation to Sec. 245MA shall not be eligible for DRC –
in respect of whom an order of detention has been made under provisions of Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974;
in respect of whom prosecution for any offence punishable under the provisions of
the Indian Penal Code, 1860, the Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Prohibition of Benami Transactions Act, 1988, the Prevention of Corruption Act, 1988 or the Prevention of Money Laundering Act, 2002 has been instituted or such person has been convicted of any offence punishable under any of those Acts;
in respect of whom prosecution has been initiated by an income-tax authority for any offence punishable under the provisions of this Act or the Indian Penal Code or for the purpose of enforcement of any civil liability under any law for the time being in force,
or such person has been convicted of any such offence consequent to the prosecution initiated by an Income-tax authority;
who is notified u/s 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992
Comments
Under existing provisions of IT Act, wherein variation in order u/s 143(3) arises as a consequence of Transfer Pricing order u/s 92CA(3) or in case of any foreign company, Dispute Resolution Panel (DRP) may be approached by the assessee to resolve dispute regarding variations proposed vide order u/s 143(3).
Constitution of DRC shall extend the benefit to small and medium taxpayers as well to resolve dispute against the proposed variations at the initial stage of assessment resulting in lesser number of disputes and appeals. Further, clarity is required about the finality of the orders passed by DRC settling the dispute.
Content
Others Direct Tax 89
