Para 4 - Procedure in dispute resolution - E-dispute Resolution Scheme, 2022

4. Procedure in dispute resolution. (1) The application for dispute resolution, as referred to in paragraph 3, shall be dealt with in the following manner, namely:- Application for dispute resolution (i) the assessee who fulfils the specified conditions may, in respect of any specified order, file an application electronically for dispute resolution to the Dispute Resolution Committee designated for the region of Principal Chief Commissioner of Income-tax having jurisdiction over the assessee; (ii) the application shall be filed in the Form No. 34BC referred to in rule 44DAB: (a) within such time from the date of constitution of the Dispute Resolution Committee, as may be specified by the Board, for cases where appeal has already been filed and is pending before the Commissioner (Appeals); or (b) within one month from the date of receipt of specified order, in any other case; (iii) the application shall be submitted by email to the official email of the Dispute Resolution Committee alongwith proof of payment of tax on the returned income, if available and accompany a fee of one thousand rupees as mentioned in sub-rule (2) of rule 44DAB. Screening of application (iv) the Dispute Resolution Committee shall examine the application with respect to the specified conditions and criteria for specified order; (v) upon such examination the Dispute Resolution Committee, where it considers that the application for dispute resolution should be rejected, shall serve a notice calling upon the assessee to show cause as to why his application should not be rejected, specifying a date and time for filing a response; (vi) the Dispute Resolution Committee shall, on a request by the assessee, provide him an opportunity of being heard through video telephony or video conferencing facility, to the extent technologically feasible; (vii) the assessee shall furnish a response to the show-cause notice referred to in clause (v) within the specified date and time or such extended time as may be allowed on the basis of application made in this behalf, to the Dispute Resolution Committee; (viii) the Dispute Resolution Committee may, after considering the response furnished by the assessee in clause (vii), reject the application or proceed to decide the application on merits in accordance with the procedure laid out in clauses (ix) to (xiv) and where no such response is furnished reject the application; (ix) the decision of the Dispute Resolution Committee that the application for dispute resolution should be allowed to be proceeded with or rejected, shall be communicated to the assessee on his registered e-mail address; (x) the assessee shall, within thirty days of receipt of the communication that the application is admitted as referred to in clause (ix), be required to submit a proof of withdrawal of appeal filed under section 246A of the Act or withdrawal of application before the Dispute Resolution panel, if any, to the Dispute Resolution Committee or convey that there is no aforesaid proceeding pending in his case, failing which the Dispute Resolution Committee may reject the application. Procedure to be followed by Dispute Resolution Committee (xi) the Dispute Resolution Committee may, upon admission of the application, as referred to in clause (ix), and subsequent to the receipt of the response of the assessee in clause (x), call for records from the income-tax authority and further examine, as it may deem fit, with respect to the issues covered in the application; (xii) the Dispute Resolution Committee may seek a report from the assessing officer on the issues covered in the application or on any other issue arising during the course of proceedings; (xiii) the Dispute Resolution Committee may before disposing off the application, call for further information from the assessee or any other person by sending an email to his registered email address; (xiv) the assessee shall electronically submit its response to the Dispute Resolution Committee, within the time specified or such time as may be extended by the Dispute Resolution Committee on the basis of an application in this behalf; (xv) the Dispute Resolution Committee may, after considering the material available on record, including any further information or evidence received from the assessee, income-tax authority or any other person, may decide - (a) to make modifications to the variations in specified order, which are not prejudicial to the interest of the assessee, and decide for waiver of penalty and immunity from prosecution in accordance with the provisions of rule 44DAC, and pass an order of resolution accordingly; or (b) to not make modifications to the variations in the specified order, but however may decide for waiver of penalty and immunity from prosecution provisions in accordance with the provisions of rule 44DAC, and pass an order of resolution accordingly, which shall be treated as an order not prejudicial to the interest of the assessee; or (c) to not make any modification to the specified order, and pass an order disposing off the application, which shall be treated as an order not prejudicial to the interest of the assessee, within six months from the end of the month in which application for dispute resolution is admitted by the Dispute Resolution Committee as per clause (viii); (xvi) the Dispute Resolution Committee shall serve a copy of the order of resolution or order disposing off the application, as the case may be, upon the assessee and also the assessing officer for giving effect to the same, if so required; (xvii) where the specified order is an order of the eligible assessee as referred to in sub-section (1) of section 144C of the Act, the assessee shall not be eligible to file any reference to the Dispute Resolution Panel or an appeal to the Commissioner (Appeals) against the modified order; (xviii) the assessing officer shall serve a copy of the modified order along with notice of demand upon the assessee specifying a date for making payment of demand; (xix) the assessee shall, furnish proof of payment of the said demand to the Dispute Resolution Committee and also to the assessing officer; (xx) the Dispute Resolution Committee shall, on receipt of confirmation of payment of demand, by an order in writing, grant immunity from prosecution and waiver of penalty if applicable, in accordance with the provisions of rule 44DAC. (2) The order of the Dispute Resolution Committee for the resolution of a dispute shall be in accordance with the provisions of the Act. (3) Notwithstanding anything contained in sub-paragraph (1), the Dispute Resolution Committee may at any stage of the dispute resolution proceedings, if considered necessary, for reasons to be recorded in writing and after giving an opportunity of being heard to the assessee, decide to terminate the dispute resolution proceedings if,- (i) the assessee fails to cooperate during the course of dispute resolution proceedings; or (ii) the assessee fails to respond to, or submit any information in response to, a notice issued to him; or (iii) the Committee is satisfied that the assessee has concealed any particular material to the proceedings or had given false evidence. (iv) the assessee fails to pay the demand as required in clause (xviii) of sub-paragraph (1) of paragraph 4. (4) Where the dispute resolution proceedings are terminated as per sub-paragraph (3), the Dispute Resolution Committee shall intimate the income-tax authority for taking necessary action as per the provisions of the Act. (5) Where the application has not been allowed to be proceeded with as referred to in clause (viii) of sub-paragraph (1) of paragraph 4, the assessee may file an appeal to the Commissioner (Appeals) and the period taken by the Dispute Resolution Committee in deciding on the admission shall be excluded from the period available to file such appeal.