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Government Constitutes Interim Boards for Settlement u/s 245AA

government-constitutes-interim-boards-for-settlement-us-245aa

CBDT vide Notification No. 91/2021 in S.O. 3216 (E) dated 10th August 2021 has notified 7 (seven) Interim Boards for settlement of pending applications u/s 245A constituted by the Central Government as per section 245AA. Of these, three Boards are situated in Delhi, two in Mumbai and one each in Kolkata and Chennai.


Readers are aware that Finance Act, 2021 has discontinued the Income-tax Settlement Commission (“ITSC”) with effect from 1st February 2021. It is further provided that all the pending applications before the ITSC as on date shall be decided by an Interim Board as constituted under section 245AA.



Finance Act, 2021 also provided to constitute Dispute Resolution Committee (“DRC”) for small and medium taxpayers as per section 245MA and to abolish the age-old Settlement Commission with effect from 1-2-2021, the day when the Finance Bill, 2021 was introduced.


The interesting fact of DRC is that it is introduced as a faceless institution. Anyone with a taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakh shall be eligible to approach the Committee.


For this purpose, a new section 245AA is introduced in the Income-tax Act to empower the Central Government to constitute one or more Interim Boards for Settlement for the settlement of pending applications before the ITSC as of 1-4-2021.


Section 245AA(2) provides that every Interim Board shall consist of three members, each being an officer of the rank of Chief Commissioner, as may be nominated by the Board. Further, if the Members of the Interim Board differ in opinion on any point, the point shall be decided according to the opinion of the majority.


For disposal of pending applications, the Interim Boards to exercise all power as are available to ITSC.


Read the full text of Notification No. 91/2021 dated 10.08.2021 on Constitution of Interim Boards for Settlement u/s 245AA


MINISTRY OF FINANCE 

(Department of Revenue) 


(CENTRAL BOARD OF DIRECT TAXES) 


NOTIFICATION 


New Delhi, the 10th August, 2021 


S.O. 3216 (E).—In pursuance of the powers conferred by sub-section (1) of section 245AA of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby establishes the Interim Boards for Settlement specified in column (2) of the Schedule below, having its headquarters at the place mentioned in column (3) of the said Schedule, namely:- 


SCHEDULE 

Sl. No.

Interim Board for Settlement

Headquarters

(1)

(2)

(3)

1.

Interim Board for Settlement-I

Delhi

2.

Interim Board for Settlement-II

Delhi

3.

Interim Board for Settlement-III

Delhi

4.

Interim Board for Settlement-IV

Kolkata

5.

Interim Board for Settlement-V

Mumbai

6.

Interim Board for Settlement-VI

Mumbai

7.

Interim Board for Settlement-VII

Chennai


[Notification No. 91/2021/F.No. 370142/33/2021-TPL]

SHEFALI SINGH, Under Secy.


Download Copy of CBDT Notification No. 91/2021 dated 10.08.2021 on Constitution of Interim Boards for Settlement u/s 245AA in pdf format

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