CBDT Notifies E-settlement scheme 2021 for pending applications with settlement commission

CBDT notifies E-settlement scheme 2021 for pending applications with settlement commission

CBDT of Direct Taxes by exercise power u/s 245D (11) and 245D (12) of Income-tax Act has issued a Scheme may be called E-Settlement Scheme 2021 to settle pending income-tax settlement applications transferred to a settlement commission. (Notification No. 129/2021/ F.No. 370142/52/2021-TPL (Part IV) dated 01.11.2021)

Scope & Applicability of e-settlement scheme, 2021

• It shall come into force on the date of its publication in the Official Gazette, i.e. 11.2021.
• E-settlement scheme, 2021 will be applicable to “pending applications in respect of which the applicant has not exercised the option Section 245M(1) of the Act & which has been allotted or transferred by CBDT to an interim board”.

To Whom this relief under E-settlement scheme 2021 given:

• E-settlement scheme, 2021 relief was given to taxpayers who were eligible to file an application as of January 31, 2021, but were unable to do so due to the termination of the Income Tax Settlement Commission as per the Finance Act 2021, & were therefore allowed to submit their applications to the interim board by Sept 30, 2021.

Key Highlights of E-settlement scheme, 2021:

1. Under this scheme an ‘interim board’ will decide on applications for settlement under the income tax act 1961.
2. Proceedings before the interim board shall not be open to the public.
3. E-settlement scheme, 2021 says that all communication between taxpayers & Interim Board will be exclusively in online mode of communication.
4. Without the permission of the interim board, no one other than the applicant, their employees, and concerned officers of the interim board or the income-tax authority or approved representatives can attend sessions, even via videoconferencing or video telephony.
5. At such locations as may be necessary, the CBDT shall develop suitable videoconferencing facilities, including telecommunication application software that supports video telephony.
6. According the CBDT, an assessee must have been qualified to file an application for settlement on January 31, 2021 for the AYs for which the application is being sought, and all relevant assessment processes of the assessee must be outstanding as of the date of filing the application for settlement.
7. All pleadings before the Interim Board may be in Hindi or English, at the applicant's option.
8. The board stated that if such applications are found to be valid, they will be deemed "pending applications" that cannot be withdrawn.
9. The applicant or his or her representative is not required to attend in person before the Interim Board, any Income-tax Authority, or any ministerial staff assigned to the Interim Board.
10. The Interim Board may, in its discretion, order the publishing of orders or portions of orders containing the Interim Board's rulings, with such changes to names and other information as it deems appropriate.

This online process of E-settlement scheme, 2021 will bring more credibility, transparency & accountability.

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