FinMin sets up panel to reduce tax litigations
With Rs 4 lakh crore locked up in litigations, the Finance Ministry today set up a committee consisting of officials from Central Board of Direct Taxes to suggest ways to reduce mounting disputes at various tax appellate forums.
New Delhi: With Rs 4 lakh crore locked up in litigations, the Finance Ministry today set up a committee consisting of officials from Central Board of Direct Taxes to suggest ways to reduce mounting disputes at various tax appellate forums.
The Committee will "examine the assessment orders, appellate orders and scrutiny report for the appeal to the ITAT related to orders...And give its recommendations for different income groups, separately for corporate and non- corporate assesses", CBDT said.
The six member panel of IRS officers headed by a Chief Commissioner of Income Tax has also been asked to study the efficacy of existing system of filing appeals to the Income Tax Appellate Tribunal by the I-T Department and suggest steps to reduce litigation before the ITAT.
"The current initiative of CBDT is in line with the intent of the government seen in this Budget to reduce tax litigation and bring certainty in the tax environment," said Amit Maheshwari, Partner, Ashok Maheshwary & Associates.
In the Budget 2014-15 speech, Finance Minister Arun Jaitley had said that a tax demand of more than Rs 4 lakh crore is under dispute and litigation before various Courts and Appellate authorities.
"This is one of the serious concerns of all taxpayers in this country," he had said.
In order to reduce litigation in direct taxes, Jaitley had propose to make certain legislative and administrative changes.
The panel is required to analysis assessment orders separately by categorising income groups -- up to Rs 25 lakh, Rs 25 lakh - Rs 1 crore, Rs 1 crore - Rs 10 crore and Rs 10 crore and above.
It will also study whether "relief allowed is based on proper marshalling of facts and legal position. The decisions are also to be analysed in the light of the order of the ITAT," CBDT said.