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CBDT formed committee to reduce litigation at dispute resolution forums in IT Department

Jul 18, 2014 14:14 IST

Central Board of Direct Tax (CBDT) on 17 July 2014 constituted a six-member empowered committee to reduce litigation at the dispute resolution forums in the Income Tax Department. The Committee will also suggest steps to reduce legal cases and has been asked to submit its report within two months.

The Committee will be headed by Chief Commissioner of Income Tax office in Ahmedabad, Rani S Nair. The other five members of the committee will be drawn from various field formations of the IT department.

The committee was also authorized to reduce litigation within the first two forums of Commissioner of Income Tax (CIT) and Income Tax Appellate Tribunal (ITAT). It was also asked to undertake fresh initiative and study selected assessment orders issued by IT officers across India under various income groups. The selected groups include income under 25 lakh rupees, 25 lakh rupees to 1 crore rupees, 1-10 crore rupees and above 10 crore rupees. In its study it will undertake the sampling orders passed by ITAT spread across various month of 2013-14.

With this, CBDT for the first time has constituted the six-member panel to examine the efficacy of the existing preliminary litigation mechanism in the IT (Income Tax) department

At present there is a four-stage grievance redressal mechanism that starts

• With an appeal to the Commissioner of Income Tax (CIT)
• Then is followed by Income Tax Appellate Tribunal (ITAT)
• Then to the High Court
• Finally to the Supreme Court

Reason for constitution of the Committee
The CBDT constituted the panel after seeing that an estimated 4 lakh crore rupees of tax revenue is locked up in litigation.

About Central Board of Direct Taxes (CBDT)
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Union Ministry of Finance and deals with matters related to levy and collection of direct taxes and formulation of policy concerning administrative reforms and changes for the effective functioning of Income-tax Department.


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