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CBDT Notifies Rule 44DA and Form No. 34BB to Withdraw Pending Application u/s 245M before Settlement Commission

cbdt-notifies-rule-44da-form-no-34bb-to-withdraw-pending-application-us-245m-before-settlement-commission

CBDT vide Notification No. 40/2021 dated April 30, 2021 has issued the Income-tax (12th Amendment) Rules, 2021 to further amend the Income-tax Rules, 1962 (“Rules”) and notifies new Rule 44DA and Firm No. 34BB to prescribe the manner for making application to withdraw pending application filed before the Income-tax Settlement Commission (ITSC). 


The Finance Act, 2021 has discontinued the Income-tax Settlement Commission w.e.f., 01-2-2021 and no application for settlement will be accepted from that date. The assessee has an option to withdraw any pending application filed before the Settlement Commission within 3 months from the date of commencement of the Finance Act, 2021.



Rule 44DA has been inserted to prescribe the manner of intimation by the assessee to the Assessing Officer, for exercising the option to withdraw the pending application for settlement of cases under Section 245M(1) of the Income-tax Act, 1961. For this purpose,  Form No. 34BB has been inserted in the Income-tax Rules to exercise the option of withdrawing the pending application for settlement of cases.


Also Read: 

Government Amends Rule to Wind-up Settlement Commission

Section 245MA: Dispute Resolution Committee to substitute Settlement Commission


Rule 44DA reads as below:


44DA. Exercise of option under sub-section (1) of section 245M and intimation thereof.- (1) The exercise of option by an assessee to withdraw his pending application under sub-section (1) of section 245M shall be in Form No. 34BB.


(2) Form No. 34BB shall be verified by the person who is authorised to verify the return of income of the assessee under section 140.


(3) Form No. 34BB shall be furnished electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, and thereafter signed printout of the said form shall be uploaded in the manner specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, under sub-rule (4).


(4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall specify the procedures, formats and standards for the purposes of furnishing and verification and manner of uploading of Form No. 34BB.”


Option to withdraw pending application u/s 245M(1) before settlement commission shall be required to be made in Form No. 34BB. The Form No. 34BB shall be verified by the person who is authorised to verify the return of income of the assessee under section 140. Form No. 34BB shall be furnished electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, and thereafter signed printout of the said form shall be uploaded in the manner specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, under sub-rule (4). The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall specify the procedures, formats, and standards for the purposes of furnishing and verification and manner of uploading of Form No. 34BB.



Read the full text of Notification No. 40/2021 dated 30.04.2021 notifying Rule 44DA and Form 34BB for withdrawing pending application before ITSC u/s 245M


MINISTRY OF FINANCE

(Department of Revenue) 


(CENTRAL BOARD OF DIRECT TAXES) 


NOTIFICATION 


New Delhi, the 30th April, 2021


G.S.R. 301(E).—In exercise of the powers conferred by sub-section (1) of section 245M read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-


1. Short title and commencement.- (1) These rules may be called the Income-tax (12th Amendment) Rules, 2021. (2) They shall come into force from the date of its publication in the Official Gazette. 


2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 44D, the following rule shall be inserted, namely:—


44DA. Exercise of option under sub-section (1) of section 245M and intimation thereof.- (1) The exercise of option by an assessee to withdraw his pending application under sub-section (1) of section 245M shall be in Form No. 34BB.


(2) Form No. 34BB shall be verified by the person who is authorised to verify the return of income of the assessee under section 140.


(3) Form No. 34BB shall be furnished electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, and thereafter signed printout of the said form shall be uploaded in the manner specified by the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, under sub-rule (4).


(4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall specify the procedures, formats and standards for the purposes of furnishing and verification and manner of uploading of Form No. 34BB.”.


3. In the principal rules, in Appendix-II, after Form No. 34BA, the following Form shall be inserted, namely:—


“FORM No. 34BB 

[See rule 44DA] 

Exercise of option to withdraw pending application under sub-section (1) of section 245M of the Income-tax Act, 1961


To, 


The Assessing Officer, …………………........ ............... 


Sir/Madam, 


I, ……………....................................……………, having Permanent Account Number (PAN) ………………….....................…… / Aadhaar Number …………………. do hereby intimate the exercise of option to withdraw my application for settlement made under section 245C of the Income-tax Act, 1961 (hereinafter referred to as the Act) on …………………..… vide number …………………….. at ………………………..…. Bench. 


2. I do hereby affirm that the aforesaid application was not declared invalid under sub-section (2C) of section 245D of the Act and no order under sub-section (4) of section 245D of the Act was issued on or before the 31st January, 2021 with respect to such application.


I, ……………………… (full name in block letters), son/daughter of …………….. (name of father) solemnly declare that to the best of my knowledge and belief, the information given above is correct. I further declare that I am furnishing this intimation in my capacity as ………………… and I am also competent under section 140 of the Act to verify it. 


Place: 

Date:


Yours faithfully,

Signature …………….……………….

Name………………………………… 

Designation…………………………. 

Address…………………….……… . ”.


[Notification No. 40/2021][F.No. 370142/8/2021-TPL] 

RAJESH KUMAR BHOOT, Jt. Secy. (Tax Policy and Legislation)


Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification G.S.R. 291(E), dated the 26th April, 2021.


Download Copy of Notification No. 40/2021 dated 30.04.2021 notifying Rule 44DA and Form 34BB for withdrawing pending application before ITSC u/s 245M in pdf format


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