Dispute Resolution Committee (Constitution) - Section 245MA(1) - Income Tax - Ready Reckoner - Income Tax

Dispute Resolution Committee (Constitution) - Section 245MA(1) read with Rule 44DAA Introduction In order to provide early tax certainty to small and medium taxpayers, a new scheme for preventing new dispute setting the issues at the initial stage has been instigated by the Finance Act, 2021 by inserting section 245MA with effect from April 1, 2021. In order to dispose off the pending settlement applications as on 31.01.2021, The Central Government has constituted Seven Interim Boards for Settlement vide Notification No. 91 of 2021 dated 10.08.2021. Constitution of DRC - Section 245MA(1) The Central Government shall constitute, one or more Dispute Resolution Committees, The DRC shall resolve disputes of such persons or class of persons, as may be specified by the Board, The assessee would have option to opt for or not opt for the dispute resolution through the DRC. The dispute should arising from any variation in the specified order in his case and who fulfils the specified conditions. Constitution of Dispute Resolution Committee [ Rule 44DAA ] The Central Government shall constitute a Dispute Resolution Committee for every region of Principal Chief Commissioner of Income-tax for dispute resolution, as provided under the Chapter XIX-AA of the Income Tax Act. Each Dispute Resolution Committee shall consist of three members , as under: - (a) two members shall be retired officers from the Indian Revenue Service (Income-tax), who have held the post of Commissioner of Income-tax or any equivalent or higher post for five years or more; and - (b) one serving officer not below the rank of Principal Commissioner of Income-tax or Commissioner of Income-tax as specified by the Board. The members shall be appointed by the Central Government for a period of three years . The decision of the Dispute Resolution Committee shall be by majority . The Central Government may fix a sum to be paid as fee to a member , who is retired officer, on a per case basis, along with a sitting fee, so decided by the Board. The Central Government may, by recording reasons in writing and after giving an opportunity of being heard , remove any member from the Dispute Resolution Committee.