The Income Tax Appellate Tribunal (ITAT) on Monday conducted an All India Video Conference on the Central government's latest framework for reducing direct tax litigation- The Direct Tax Vivad se Vishwas Act, 2020.
The Act, notified by the government last month, provides a mechanism for resolution of disputes related to income tax and corporation tax, pending before any appellate forum as on June 30, 2020 (as extended in view of the pandemic).
The session was presided over by Justice PP Bhatt, President, ITAT, who stressed on the need to create a dispute-free tax collection system alongside the importance of Alternative Dispute Resolution Mechanism.
He also urged all the stakeholders to avoid litigation so that the Tribunals could concentrate on "more meritorious issues" that have a bearing on tax policies.
The Chief Guest, PC Mody, Chairman, Central Board of Direct Taxes (CBDT), explained that the objective behind the scheme was to reduce pending litigation, enable timely recovery of taxes by the Government and spare the taxpayers' time, resources and energy from litigation.
He also acknowledged that the scheme could not be conceived with all the perfections and assured that the Government and the CBDT are open for suggestions and comments from every stakeholder for better implementation of the scheme.
Vice President of Delhi Zone, GS Pannu, who coordinated the entire session emphasized that the CBDT should devise a mechanism in order to keep litigation within manageable limits, by making suitable amendments in the statute.
Inter alia, Kamlesh Chandra Varshney and Rajesh Kumar Bhoot, Joint Secretaries in the Ministry of Finance also participated in the conference. Further, representatives of the Bar Associations from Delhi, Mumbai, Ahmedabad, Bengaluru, Kolkata, Chennai, Hyderabad, Lucknow, Pune and Chandigarh were present who unanimously endorsed the scheme.
To Read the modalities of the Direct Tax Vivad se Vishwas Act, Click Here.
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