Taxpayers can file dispute settlement requests by the end of September

These interim boards were set up to decide on pending applications in the four-decade-old Settlement Commission, which was closed with effect from February 1 this year.

When the government announced the closure of the commission earlier this year, it had said that no fresh applications could be filed from February 1. The winding up of the Settlement Commission was announced in view of a new tax dispute settlement scheme introduced in the Union Budget this year for small taxpayers.

CBDT It said that on the basis of representations received from several taxpayers, it was decided to grant additional time till the end of September for filing of applications before the Interim Boards. The tax authority said several taxpayers said they were in advanced stage of filing their applications before the Settlement Commission on February 1. Further, some taxpayers have requested the High Courts that their applications for settlement may be accepted and they may be relieved. This has resulted in uncertainty and litigation, the CBDT said.

The CBDT said the relief will cover taxpayers eligible to file settlement applications on January 31 this year for the respective assessment years. They should have all the evaluation proceedings pending as on the date of filing the request. These applications will be disposed of by the interim board as pending applications, the tax authority said.

Taxpayers making such applications cannot withdraw them. Legislative amendments will be made in this regard.

The Union Budget had announced the dissolution of the Settlement Commission and the creation of a new dispute resolution system under a committee. It will be available to assessees having taxable income: ₹50 lakh in cases where the disputed income is up to ₹10 lakhs.