The Central Board of Direct Taxes (CBDT) has provided an opportunity to taxpayers to file an application for settlement by September 30, 2021, the Finance Ministry announced on September 7.
The opportunity has been extended to those taxpayers who were eligible to file a settlement application as on January 31, 2021.
Furthermore, all the relevant assessment proceedings of the assessee should be pending as on the date of filing the application for settlement, the Finance Ministry said.
Notably, the Finance Act, 2021 led to the dissolution of Income Tax Settlement Commission (ITSC) from February 1, 2021. Subsequently, applications for settlement could not be filed.
The government, in order to provide an opportunity to those assessees who were eligible to file a surrender application, has constituted an Interim Board for Settlement.
"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," the statement said.
The Finance Ministry further clarified that taxpayers who have filed such applications before January 31 shall not have the option to withdraw such applications as per the provisions of section 245M of the Act.
The taxpayers who have already filed an application for settlement on or after February 1, as per the direction of the various High Courts and who are otherwise eligible to file such application, shall not be required to file such application again, it added.
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