The Central Board of Direct Taxes (CBDT) has rolled out Dispute Resolution Scheme (e-DRS), 2022 with the objective to minimise litigation.
The Board has constituted Dispute Resolution Committees (DRCs) in all 18 jurisdictional Pr. CCIT regions across the country.
As per e-DRS, a taxpayer can opt for e-Dispute Resolution against the ‘specified order’ under certain conditions.
“e-DRS application must be filed within one month from the date of receipt of specified order,” the Board notified.
If appeal is pending, e-DRS application is to be filed on or before 30.09.2024.
In pursuance of section 245MA in the Income-tax Act, 1961 (hereinafter referred to as “the Act”), the Central Board of Direct Taxes (CBDT) had notified the e-Dispute Resolution Scheme, 2022 (e-DRS) with the aim to reduce litigation and provide relief to eligible taxpayers. Section 245MA of the Act also provides for the constitution of Dispute Resolution Committees (DRC).
The e-DRS enables the taxpayer, who fulfils certain specified conditions as stipulated in section 245MA of the Act, 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. To this end, DRCs have been constituted in all 18 jurisdictional Pr. CCIT regions across the country. Click here to see the list of DRCs along with their e-mail addresses.
Read More: https://jurishour.in/cbdt-extending-cut-off-date-section-245c/
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 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/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 modifications to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution in accordance with the provision of rule 44DAC of the Income-tax Rules, 1962. The DRC is mandated to pass its order within six months from the end of month in which an application for dispute resolution is admitted by it.
The application for e-DRS is to be filed in Form No. 34BC referred to in rule 44DAB of the Rules, on the e-filing portal of the 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. In cases where the specified order has been passed on or before 31.08.2024 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 30.09.2024.
The Taxpayer can access e-DRS modules by login on the income tax portal. Login to your account using PAN / TAN as user ID ->Go to Dashboard ->e-File ->Income Tax Forms ->File Income Tax Forms -> under tab ‘Persons not dependent on any source of Income (Source of Income not relevant)> Dispute Resolution Committee in Certain Cases (Form 34BC) -> Fill Form No. 34BC -> Review the details -> E-Verify the Form No. 34BC using Aadhaar OTP, EVC or DSC.
