Guidelines for Accepting Settlement Applications have been issued by the CBDT
To avoid genuine hardship to assessees, the Central Board of Direct Taxes (CBDT) has issued an order extending the period for admitting applications for settlement until September 30, 2021 (filed after January 31, 2021), and treating such applications as valid and processing them as “pending applications.”
In order to avoid genuine hardship to assessees, the Board, in exercising its power under clause (b) of sub-section (2) of section 119 of the Income-tax Act, 1961 (the Act), authorises the Commissioner of Income-tax, who is posted as Secretary to the Settlement Commission prior to February 1, 2021, to accept an application for settlement on behalf of the Interim Board filed after January 31, 2021, which is filed on behalf of the Interim Board.
The relaxation is available to assessees who were eligible to file an application for settlement on 31 January 2021 for the assessment years for which the application is sought to be filed (relevant assessment years); and where the assessee’s relevant assessment proceedings are pending as of the date of filing the application for settlement.
The Finance Act of 2021 revised the Act’s provisions, stating, among other things, that the Income-tax Settlement Commission (ITSC) will cease to exist on February 1, 2021. It has also been stipulated that no settlement application can be filed on or after February 1, 2021, the date on which the Finance Bill, 2021 was placed before the Lok Sabha. By notice No. 91 of 2021 dated 10/08/2021, the Central Government established an Interim Board for Settlement (Interim Board) to deal with the pending settlement applications as of 31/01/2021.
To Read Official Order Download PDF Given Below: