Presenting the Union Budget, Finance Minister Nirmala Sitharaman has given a major relief to those involved in tax disputes. The budget seeks to set up a National Faceless Income Tax Act Tribunal Centre, Selvi. The whole process will be transparent. In simple terms, the appellant will not have to appear in the Income Tax Appellate Tribunal.
According to the budget proposal, the Income Tax Appellate Tribunal (ITAT) is proposed to be a faceless jurisdiction to implement a transparent X-athlete mechanism system. It will have electronic communication between the Tribunal and the Appellant. That means the appellant will also be able to register his presence through video conferencing.
Budget 2021: Tax Disputes could be solved faster
Last year, the country’s parliament had approved the “Direct Tax Disputes Trust Bill, 2020” to resolve pending tax disputes through which cases are being settled. According to PIB, 4.83 lakh cases of Rs 9.32 lakh crore were pending in all courts till last year. Under the scheme, taxpayers with certain conditions had to pay only the disputed tax amount, while they received full exemption on interest and fine.
The government had named the scheme “Trust in Dispute” to settle the direct tax dispute. It was presented in both the Houses of Parliament, Lok Sabha and Rajya Sabha. However, it was not necessary to pass in the Rajya Sabha because it was a finance bill.