The Central Board of Direct Taxes (CBDT) has notified the constitution of the Dispute Resolution Committee for income tax disputes under section 245MA read with section 295 of the Income Tax Act, 1961.
In Budget 2021, the Minister of Finance has proposed the formation of a Dispute Resolution Committee (DRC) in order to provide quick relief to taxpayers in tax disputes. It will be formed under a new section, 245MA, of the Income Tax Act.
As per the notification, each Dispute Resolution Committee shall consist of three members, as under:–– (a) two members shall be retired officers from the Indian Revenue Service (Income-tax), who have held the post of Commissioner of Income Tax or any equivalent or higher post for five years or more; and (b) one serving officer, not below the rank of Principal Commissioner of Income-tax or Commissioner of Income-tax as specified by the Board.
The members shall be appointed by the Central Government for a period of three years. The Central Government may fix a sum to be paid a fee to a member, who is a retired officer, on a per case basis, along with a sitting fee, so decided by the Board. The decision of the Dispute Resolution Committee shall be by majority. The Central Government may, by recording reasons in writing and after giving an opportunity of being heard, remove any member from the Dispute Resolution Committee.
An application to the Dispute Resolution Committee shall be made in Form No. 34BC by the person, who opts for dispute resolution under section 245MA of the Act in respect of a dispute arising from any variation in the specified order in his case and who fulfills the specified conditions. The same shall be accompanied by a fee of Rs. Thousand rupees.
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