The Central Board of Direct Taxes (CBDT) on 28 August 2014 set up a four-member high-level committee to scrutinize the retrospective tax amendments.
The Committee will be headed by Joint Secretary of the Foreign Tax and Tax Research-I unit of the CBDT. The other members on the panel are Joint Secretary (tax planning and legislation-I), Commissioner of I-T appeals and the Director (foreign tax and tax research-I), who will also be the secretary of the committee.
The Committee was set up following the announcement made by Union Finance Minister Arun Jaitley in his budget speech on 10 July 2014.
The Terms of Reference of the Committee
It will decide on such cases within 60 days of receiving them from the assessing officer (AO) and it will be incumbent upon the AO to approach the committee when faced with an I-T case that is for the period before April 2012.
It would examine the proposed action of the AO and after providing an opportunity to the assessee, take a decision on the proposed action.
The Committee will submits its first report for period ending December 2014 and subsequently it should submit reports on half yearly basis (June 30 and December 31 every year)
An amendment to the I-T Act with retrospective effect was undertaken by the UPA government in 2012 in lieu of the Vodafone tax case so as to protect revenue. However, it had evoked sharp reactions from domestic as well as global investors.
When: 28 August 2014