Agreed assessment in Certain Cases under Section 122D
The Finance Act has inserted a new Section to the Ordinance to provide for agreed assessment in case where a notice under sub-section (9) of Section 122 has been issued to the taxpayer except cases involving concealment of income or interpretation of any question of law.
This will help to taper tax lawsuits while ensuring collection of revenues.
A taxpayer, in response to notice under section 122(9), if intends to settle case, may file an offer of settlement before the assessment oversight committee in prescribed form, in addition to filing reply with the Commissioner. The objective of such settlement is to conclude the assessment proceedings within a shorter time period with concurrence of both the parties.
The said Committee will comprise of the Chief Commissioner, Commissioner and the Additional Commissioner having jurisdiction over the case.
The Committee after examining the aforesaid offer may call for the record of the case and after affording opportunity of being heard to the taxpayer, may decide to accept or modify the offer of the taxpayer through consensus and communicate its decision to the taxpayer.
If the consensus decision of the Committee is acceptable to the taxpayer, he shall deposit the amount of tax, penalty and default surcharge decided by the Committee and the Commissioner shall amend the assessment accordingly. The taxpayer shall waive the right of appeal against the order consequentially passed implementing the decision of the Committee.
If the Committee is not able to arrive at a consensus or the taxpayer does not agree with the decision of the Committee, the case shall be referred back to the Commissioner for decision on the basis of taxpayer’s response to notice under section 122(9).
The Board has been authorized to make rules regulating the proceedings of the Committee and any connected matter or incidental to the proceedings.