The Central Board of Direct Taxes (CBDT) has directed the Income Tax Department to accept applications for all pending tax settlement cases by September 30, 2021.
In an order dated September 28, the CBDT directed the Commissioner of Income Tax to accept all such pending applications for disposal of cases.
Taxpayers will now be able to file their applications before the interim board till September 30.
The Income Tax Act 1961 was amended, through amendments to the Finance Act, through the Union Budget of 2021-22, which led to the discontinuation of the Income Tax Settlement Commission (ITSC) with effect from February 1, 2021.
It was also directed that no application for settlement of arrears can be filed on or after February 1, 2021. Hence to clear all such applications which were pending till January 31, 2021, the government had set up the Interim Board for Settlement (IBS). .
However, after receiving several applications and representations from taxpayers from across the country, mainly from those who were in advanced stages of filing their settlement applications but could not do so due to the abolition of ITSC, the CBDT decided to file its filing. Extended till 30th September, 2021. Application before the Interim Board.
However, the relief has been given to such taxpayers on the condition that they were eligible to file an application for settlement of their dues as on January 31, 2021 and all their necessary proceedings for the same are pending till the date of filing.