CBDT Issues Circular On Constitution and Functioning Of Dispute Resolution Committee
Bhavya Singh
19 Aug 2023 6:00 AM GMT
In response to the enactment of the e-Dispute Resolution Scheme, 2022, under section 245MA of the Income Tax Act, the Central Board of Direct Taxes (CBDT), (Ministry of Finance), has recently issued a significant office order on August 14, 2023, outlining the constitution and operational procedures of the Dispute Resolution Committee (DRC).The circular, bearing the reference of Rule 44DAA of...
In response to the enactment of the e-Dispute Resolution Scheme, 2022, under section 245MA of the Income Tax Act, the Central Board of Direct Taxes (CBDT), (Ministry of Finance), has recently issued a significant office order on August 14, 2023, outlining the constitution and operational procedures of the Dispute Resolution Committee (DRC).
The circular, bearing the reference of Rule 44DAA of the Income Tax Rules, stipulates that the Central Government has been authorized to establish a DRC for each region of the Principal Chief Commissioner of Income-tax to address and resolve disputes. The order provides detailed insights into the eligibility criteria, selection procedure, tenure, remuneration, and other key aspects of the DRC's functioning.
Eligibility and Composition:
According to Rule 44DAA of the Income Tax Rules, the DRC will comprise three Members, each appointed by the Central Government. These members shall consist of two retired officers from the Indian Revenue Service (Income Tax) who have held the position of Commissioner of Income-tax or equivalent for a minimum of five years, and one serving officer not below the rank of Principal Commissioner of Income-tax or Commissioner of Income-tax as designated by the Board.
Selection Process:
The selection of retired Members of the DRC will be conducted through a Selection Panel (Panel) consisting of three members, chaired by the Pr. DGIT (HRD), along with two officers at CCIT level as members. The appointment process for retired Members will involve an open advertisement, and shortlisted candidates will be determined based on predefined criteria.
The circular emphasizes that a centralized advertisement will be published through the office of Pr.DGIT, HRD, in 'Employment News' and the Department's official website. The Panel will then finalize two names for each CCA region along with an additional common reserve list of candidates. This reserve list will contain up to 18 candidates in order of merit and remain valid for one year.
Tenure and Reappointment:
Members of the DRC will serve a three-year term, with the possibility of reappointment, provided the age of the retired member does not exceed 61 years as of the advertisement date. The tenure will expire either on completion of three years or upon reaching 65 years, whichever comes earlier.
Remuneration and Allowances:
Retired DRC Members will receive a sitting fee of Rs. 5,000 per day of sitting and a casewise fee of Rs. 5,000 per case. The total monthly remuneration will not exceed Rs. 1.10 lakh, and these fees are subject to CBDT's revision at any time. Additional remuneration will be provided per case upon decisions being made, and proper timelines for fee disbursement will be followed.
Operational Structure:
A serving officer, not below the rank of Principal Commissioner of Income-tax, will be designated as the third member of the DRC. This position will be an additional charge to Pr. CIT AU-1/VU-1, supported by personnel for efficient functioning during sittings.
Funding and Expenses:
Expenses related to setting up the DRC, including office space and infrastructure requirements, will be covered by the concerned Pr. CCIT under OE (General) budgetary grants. Sitting fees and case-wise fees will be funded from the grants of the respective Pr. CCIT under the head 'payment of professional and other special services.'
