The Central Board of Direct Taxes (CBDT) on Tuesday said that taxpayers can now file application for settlement till 30th September. In a statement, the board said that in order to dispose off the pending settlement applications as on 31 January 2021, the central government has constituted Interim Board for Settlement. “The taxpayers, in the pending cases, have the option to withdraw their applications within the specified time and intimate the Assessing Officer about such withdrawal," it said.
The department further said it had been represented that a number of taxpayers were in advanced stages of filing their application for settlement before the ITSC as on 1 February 2021. Further, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted. “In some cases, the Hon’ble High Courts have given interim relief and directed acceptance of applications of settlement even after 01.02.2021. This has resulted in uncertainty and protracted litigation," it said.
“In order to provide relief to the taxpayers who were eligible to file application as on 31.01.2021, but could not file the same due to cessation of ITSC vide Finance Act, 2021, it has been decided that applications for settlement can be filed by the taxpayers by 30th September, 2021 before the Interim Board," the CBDT said.
The board, however, said that taxpayers who have filed such applications shall not have the option to withdraw such applications as per the provisions of section 245M of the Act.
Further, the taxpayers who have already filed application for settlement on or after 1st February 2021 as per the direction of the various High Courts and who are otherwise eligible to file such application shall not be required to file application again.
