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of <h1>New Mechanism to Unify Direct Tax Interpretations: Central & Regional Committees to Reduce Litigation and Ensure Consistency.</h1> The circular establishes an institutional mechanism to create a consistent 'Departmental View' on contentious legal issues related to direct taxes, aiming to reduce litigation and ensure uniform interpretation of legal provisions. A Central Technical Committee (CTC) is formed, comprising senior members from the Central Board of Direct Taxes (CBDT), with a supporting Secretariat. Regional Technical Committees (RTCs) will initially discuss issues locally. Contentious issues are identified and referred to the CTC, which formulates a departmental stance after considering various opinions and inputs. Approved views are disseminated as Circulars, with provisions for handling conflicting High Court decisions.
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