TaxTMI 
TaxTMI 
Clarifications on the Direct Tax Dispute Resolution Scheme, 2016
X X X X Extracts X X X X
X X X X Extracts X X X X
....16 dated 12.09.2016. Subsequently, further queries have been received from the field authorities and other stakeholders. The Central Government has considered the queries and decided to clarify the same in the form of questions and answers as follows.- Question No.1: There are cases where the Assessing Officer (AO) has made addition on account of provisions under section 9 of the Income-tax Act, 1961 (the Act), which was later retrospectively amended, especially with regard to royalty and fees for Technical Services. What would be the position of the case of an assessee vis-à-vis the Scheme, where an addition has been made by AO before such retrospective amendment? Whether the case would be treated as one being in consequence of ret....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eme Court. Question No.3: There are cases where assessees are in different stages of appeal for different years on similar issue(s). In such a situation, if an assessee avails the benefits of the Scheme for a particular year/years, whether the revenue would withdraw its appeal against the assessee, in the year(s) in which the assessee has got the relief? If such is the case, at what stage would the revenue withdraw its appeal? Answer: In respect of 'tax arrear', the Scheme is available only if dispute is pending before Commissioner (Appeals). Hence the question of withdrawal of appeal by revenue does not arise in such cases. In respect of 'specified tax', section 203(3) of the Finance Act, 2016 states that the declarant before opting fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as pending as on 29.02.2016. The term 'dispute pending as on 29.02.2016' refers to the tax determined under the Income-tax Act or the Wealth-tax Act which has been disputed by the assessee. In the above referred case, the specified tax has been determined by AO after 29.02.2016; hence the question of dispute pending in respect of such tax as on 29.02.2016 does not arise. Therefore, the assessee in the present case is not eligible to avail the Scheme. Question No.6: Whether a penalty order under section 271C or 271CA of the Income-tax Act for which an appeal is pending with CIT(Appeals) is covered under the Scheme? Answer: As per the Scheme, 'tax arrear' in case of penalty is linked to the total income finally determined. Since, penalty o....