The Finance Ministry has given time till September 30, 2021 to taxpayers for filing applications before the Interim Board of Settlement for clearing their pending tax cases with the Income Tax Settlement Commission (ITSC) level.
“In order to provide relief to the taxpayers who were eligible to file an application as on January 31, 2021, but could not file the same due to cessation of ITSC through Finance Act, 2021, it has been decided that applications for settlement can be filed by the taxpayers by September 30, 2021, before the Interim Board,” a statement issued by the Finance Ministry said.
The Finance Act, 2021 amended the provisions of the Income Tax Act, 1961, subsequent to which, the ITSC ceased to operate with effect from February 1, 2021. Further, it was clarified that no application for settlement could be filed on or after February 1, which was the date on which the Finance Bill, 2021, was laid in Lok Sabha.
The government had formed the Interim Board for Settlement to dispose off all the pending settlement applications as on January 31, 2021. Taxpayers had been given the option to withdraw their applications within a specified time limit and to inform the assessing officer about it.
Several taxpayers, who were in the advanced stages of filing their application for settlement before ITSC as on February 1, 2021, sent several representations to the Finance Ministry, with many even taking legal recourse seeking acceptance of their applications.
With several courts giving relief to tax payers, allowing them to file their applications even after February 1, 2021, the ministry decided to give them time till September 30, 2021 to do so.