CBDT rolls out E- Dispute Resolution Scheme
CBDT on 30th August 2024, notified the e-Dispute Resolution Scheme, 2022 with an objective to reduce litigation and provide relief to eligible taxpayers.
In pursuance of section 245MA of Income-tax Act, DRCs have been constituted in all 18 jurisdictional Principal CCIT regions across the country.
Eligible cases for application
DRC will handle those cases where
(i) the aggregate sum of variations proposed in an order does not exceed Rs.10 lakh and
(ii) returned income for the relevant assessment year does not exceed Rs. 50 lakh.
(iii) Note that, such order should not be based on search/surveys or information received under DTAA agreement under section 90 or 90A of the Act.
Time limit for application:
Application for e-DRS is to be filed in Form No. 34BC within 1 month from the date of receipt of specified order.
In cases where appeal has already been filed and is pending before the Commissioner (Appeals) the application for e-DRS, is to be filed on or before 30.09.2024.
Time limit for dispute resolution
DRC after careful validation of application and proceedings may make modification, to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution.
DRC is mandated to pass its order within 6 months, from end of month in which application for dispute resolution is admitted by it.