Special CBDT panel to look into reducing tax dispute cases

18 July 2014

With some Rs4 lakh-crore locked up in tax litigation, the finance ministry has set up a committee of officials from the Central Board of Direct Taxes (CBDT) to suggest ways to reduce mounting disputes at various tax appellate forums.

''It has been decided to constitute a committee to appraise the efficacy of existing dispute resolution forums of Commissioners of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT) and to suggest steps to reduce litigation before these forums,'' said a notification by the CBDT.

The six-member committee will be headed by Rani Nair as officer of the rank of chief commissioner (income tax). Nair is currently posted as CIT-Ahmedabad.

The other five members will be commissioners drawn from various field formations of the I-T department. The committee has been given eight weeks to submit its report.

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 Indian Revenue Service (IRS) officers has also been asked to study the efficacy of the 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 panel is required to analysis assessment orders separately by categorising income groups - up to Rs25 lakh, Rs25 lakh-Rs1 crore, Rs1 crore- Rs10 crore, and Rs10 crore or 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", the CBDT notification said.

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