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DRS, 2016 is available to cases pending before CIT(A): CBDT

By TIOL News Service

NEW DELHI, SEPT 15, 2016: IN order to reduce the pending litigation, the Direct Tax Dispute Resolution Scheme, 2016 (the Scheme) has come into force from 1st June, 2016 and can be availed upto 31st December, 2016. The Scheme is available to the cases pending with the first appellate authority [i.e. CIT(A)] as on 29th February, 2016, subject to certain conditions. It also extends to the cases pending litigation owing to retrospective amendment at different levels.

Under the Scheme, if the amount of disputed tax is

++ Up to Rs.10 lakh, complete waiver from levy of penalty and from initiation of prosecution is provided on payment of assessed tax along with the interest.

++ More than Rs.10 lakh, the declarant is required to pay only 25% of the minimum penalty leviable along with the due tax and interest.

In respect of penalty appeals, the declarant shall get waiver of the 75% of the penalty levied and immunity from prosecution. In respect of specified tax, the declarant gets complete waiver of/immunity from levy of penalty and immunity from prosecution.

CBDT has received various queries from stakeholders seeking clarifications about various provisions of the Scheme. The issues raised have been examined and a set of 14 FAQs has been issued vide Circular No. 33 of 2016. The circular inter alia provides clarifications regarding eligibility of cases for the Scheme, fate of pending penalty appeals, determination of amount payable under the Scheme, right to appeal in other years, date of withdrawal of pending appeal and time limit for intimation of payment by the declarant and issuance of certificate by the designated authority.


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Why assessees should be deprived of the benefit merely because appeal is disposed of

The CBDT clarification that appeal pending as on 29th February 2016 should also be pending as on date of filing declaration is not only against the specific provisions of the Scheme but also against the true spirit of the Scheme. The Scheme only provides that appeal should be pending as on 29th February before the CIT Appeals and not that it should also be pending as on date of declaration. This will further increase in litigation before Tribunal. Most of the assessees are not fully aware of the Scheme till date. And there was a confusion till the clarification of the CBDT vide Circular No.33 dated 12th Septemeber 2016. The CBDT clarification creates hardship to assessees who would like to settle the dispute instead of continuing the litigation before the Tribunal. Therefore the CBDT should reconsider its clarification and allow the benefit of declaration in cases where such appeals are disposed of after 1st April.

Posted by vasantirkal vasantirkal
 

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