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Indore (Madhya Pradesh): The Central Board of Direct Taxes (CBDT) has again launched its e-Dispute Resolution Scheme, 2022 (e-DRS) with the aim to reduce litigation and provide relief to eligible taxpayers. For screening of applications received under eDRS, Dispute Resolution Committees (DRCs) have also been constituted in all 18 jurisdictional Principal CCIT regions.
This is another initiative by the government towards minimising litigation. The e-DRS enables the taxpayer, who fulfils certain specified conditions to file an application electronically for dispute resolution to the DRC designated for the region of Principal Chief Commissioner of Income-tax having jurisdiction over the taxpayer.
As per e-DRS, a taxpayer can opt for e-Dispute Resolution against the ‘specified order’ as defined in clause (b) of the Explanation to section 245MA of the Income Tax Act, which includes an order in which the aggregate sum of variations proposed or made does not exceed Rs 10 lakh and returned income for the relevant assessment year does not exceed Rs 50 lakh.
Further, such order should not be based on search and surveys or information received under an agreement referred to under section 90 or 90A of the Act.
According to e-DRS, a DRC may make modification to variations in the specified order and decide to grant reduction and waiver of penalty and prosecution in accordance with the provision. The DRC is mandated to pass its order within six months from the end of month in which application for dispute resolution is admitted by it.
The application for e-DRS is to be filed in Form No 34BC referred in rule 44DAB of the Rules, on the e-filing portal of Income Tax Department, within one month from the date of receipt of specified order. In cases where appeal has already been filed and is pending before the Commissioner of Income-tax (Appeals), the application for e-DRS, is to be filed on or before 30.09.2024.
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In cases where the specified order has been passed on or before August 31 and the time for filing appeal against such order before CIT (Appeals) has not lapsed, the application for dispute resolution can be filed on or before September 30.
CA Kirti Joshi, ex-chairman of CA Indore Branch of ICAI said, "The scheme is really useful for those who are facing litigation. eDRS provides relief to eligible taxpayers. It’s a win-win scheme for the Income Tax Department as well as the taxpayer facing litigation".
