Review meeting taken by the FM on the working of ITSC on 24.10.2013- Material for preparing a brief for the follow up meeting - Income Tax - F.No. 299/130/2013-IT(Inv.lll)/1300

F.No. 299/130/2013-IT(Inv.lll)/1300 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 26th November 2013 Sub : Review meeting taken by the FM on the working of ITSC on 24.10.2013 - Material for preparing a brief for the follow up meeting With reference to the communication of the Under Secretary, Department of Revenue vide F.No. A-Q21016/14/2013-Ad IC(AAR) dated 19.11.2013, the undersigned is directed to furnish the following inputs of the CBDT indicating status of the action taken/proposed to be taken on each of the issues: Sl. No. Issue in brief direction of the FM (those on which action from CBDT is due) Status of the action taken/proposed as on 26.11.2013 1. In view of the huge pendency with various Benches, especially of the applications received prior to 1.6.2007, FM directed for expeditious hearing and felt that it should be possible to complete the cases in 2 hearings. The Benches should fix hearings to ensure that on an average one such case is decided on every working day by each Bench Action is primarily for the ITSC. However, directions on the issue are being circulated to all the CslT(DR) to assist the Benches for expeditious disposal of the cases. Some of the Benches such as Mumbai have only one CIT (DR) as against the two sanctioned posts. The single DR is not able to cope up with the work load to effectively. represent the cases before the Bench. In order to ensure effective representation, the matter of posting of one more CIT(DR) to Mumbai Bench has been taken up with the Member (P V) and the Chairperson CBDT 2. No adjournment to be sought: by the CIT. Directions to be issued for submission of all reports in time Directions in this regard have been issued on 26.11.2013 to all the CCsIT (CCA), CCslT(C)/DGslT(Inv) under intimation to the zonal Members 3. FM expressed displeasure that the CBDT and DoR did not inform him of the large number of stay orders passed by the Supreme Court in respect of applications received prior to 31.5.2007 and directed Member (Inv) to be pro-active to get stay orders vacated Directions in this regard have been issued on 26.11.2013 to all the CCsIT (CCA), CCslT(C)/DGsIT(lnv) under intimation to the Zonal Members to ensure that every possible steps are taken to get the stay vacated in such cases and to inform Member(Inv) of the steps taken in this regard in each case. 4. On being informed of the Writs filed by the Department against orders u/s 245D(2C) on the basis of lack of full and true disclosure in the application, the FM directed Member(lnv) that before filing Writ by the Department, he may be informed. Directions in this regard have been issued on 26.11.2013 to all the CCsIT (CCA), CCslT(C)/DGsIT(lnv) under intimation to the zonal Members 5. Suggestion to amend Rule 44CA to provide forwarding of the whole settlement application, including Annexures, while calling Commissioner s report u/s 245D(2B) which will enable the Commissioner to place on record his submissions as well as necessary documents regarding full and true disclosure and manner of earning such income Member (L C), CBDT has been requested to have the amendment in the Rule processed by TPL Division at the earliest. 6. Submission of a note on suggested amendment in the IT Act, 1961 for inclusion of settlement of tax arrears by the ITSC in Chapter XIX-A of the Act The matter is being placed before the Chairperson CBDT for necessary action 7. Submission of a proposal by the ITSC on suggestion to give powers to ITSC for. granting immunity from penal provisions of the Companies Act in the settlement applications filed by the companies Not applicable for the CBDT 8. Huge adjustments in transfer pricing cases being made by the Department. Amount of such adjustments in 2012-13 exceeded Rs. 70,000 crore. ITSC requested that some Benches should be designated to hear transfer pricing adjustment cases expeditiously so that the demand could be collected. FM directed that a note may be submitted to him in this regard. Member (Inv), CBDT was present in the meeting. As per his recollections and notings of the proceedings of the said meeting, the FM did not respond to the submissions/request of the Vice Chairman ITSC for designating some Benches to adjudicate on cases involving transfer pricing. Therefore, the decision recorded on this issue may please be re-examined 9. Disparity between the pay scale of Members CBDT and Members ITSC. FM assured that i.e. will ensure justice to Members ITSC Not applicable for the CBDT 2. This issues with the approval of the Member (inv), CBDT (S.L. Anuragi) Under Secretary (Inv.III)