TMI BlogClarifications on the Direct Tax Dispute Resolution Scheme, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... heme. The Direct Tax Dispute Resolution Scheme Rules, 2016 (hereinafter referred to as the Rules ) have been notified. In regard to the scheme queries have been received from the stakeholders seeking further clarity on certain provisions of the Scheme. The Central Government has considered the queries and decided to clarify the same in the form of questions and answers as follows.- Question No.1: In a case an appeal was pending before CIT(Appeals) as on 29.02.2016. However, before making declaration under the Scheme the appeal is disposed of by CIT(Appeals). Is the assessee eligible to avail the Scheme? Answer: In such a case where the appeal was pending before CIT(Appeals) as on 29.02.2016 and the CIT(Appeals) has already dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantum appeal does not exceed ₹ 10 lakh, the declarant is required to pay only the disputed tax interest and there is no requirement for payment of any amount in respect of penalty leviable. Section 205(b) of the Act provides immunity from imposition or waiver of penalty under the Income-tax Act or the Wealth-tax Act in respect of tax arrear covered in the declaration to the extent the penalty exceeds the amount of penalty referred to in section 202(I) of the Act. Hence, in both the situations (i.e. whether disputed tax in quantum appeal exceeds ₹ 10 lakh or not), where a valid declaration under the Scheme is made in respect of quantum appeal, the appeal against penalty levied under section 271(1)(c) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal. The Commissioner (Appeals) condoned the delay in filing of the appeal. Is the Scheme available to the assessee in such a case? Answer: In condonation cases, a declarant shall be eligible for the Scheme, if: (i) the time limit for filing of appeal under section 249 of the Income-tax Act, 1961 has got barred by limitation on or before 29.02.2016; (ii) the appeal and condonation application has been filed before Commissioner (Appeals) before 01.06.2016; and (iii) the delay in filing of such appeal is condoned by the Commissioner (Appeals) Hence, in the present case the Scheme is available to the assessee. Question No.7: In a case the Commissioner (Appeals) has given a notice of enhancement. Is such a case eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Answer: In case of an appeal relating to penalty under section 271(1)(c), the amount payable under the Scheme is 25% of the penalty amount and also the tax and interest payable on the total income finally determined. For this purpose the total income finally determined shall be the total income as determined after giving effect to the last appellate order passed on or before the date of filing declaration under the Scheme. Any variation to the total income as a result of any appellate order passed subsequent to the date of declaration shall be ignored for the purposes of computing the amount of penalty payable under the Scheme. Question No.10: Where certain income has been charged to tax in the hands of two different persons or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be paid to the credit of the Government on or before the due date as specified in the Scheme. The assessees are advised to pay the tax well on time so as to avail the relief under the Scheme. Question No.13: There is no time limit specified for intimating the payments made by the declarant in accordance with the certificate issued in Form-3. Further, there is also no time limit specified for issuance of order under section 204(2) of the Act by the designated authority. Please clarify? Answer: The declarant shall intimate the fact of payment along with the proof of the same to the designated authority within one month from the date on which time limit for making payment under the Scheme expires. The designated authority shall is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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