Tax Litigation

With a whopping 80,000 tax litigation cases pending before Cestat, Revenue Secretary Sanjay Malhotra on Saturday said the government will set up a committee to suggest measures to reduce tax litigation and expeditious disposal of backlog. Speaking at an event to commemorate 40 years of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Malhotra said bringing clarity in tax laws and rules will help in reducing litigation as pendency of litigation has been a constant challenge before the tribunal. "What we will do in the government and we will seek support from CESTAT and CBIC is with us, we will set up a group and see how we can reduce litigation and reduce pendency. Whether it is by simplifying, clarifying law or training (officers), what are the various ways we can reduce fresh litigation and provide for expeditious disposal of pending cases," Malhotra said. He said CESTAT is currently operating with a full bench and the vacancies that were there last year have been a

SSBA Innovations, which runs tax portal TaxBuddy, has filed preliminary papers with capital markets regulator Sebi to raise Rs 105 crore through an Initial Public Offering (IPO). The IPO is entirely a fresh issue of equity shares aggregating up to Rs 105 crore, according to the Draft Red Herring Prospectus (DRHP). Proceeds of the issue to the tune of Rs 65.45 crore will be used for funding user acquisition and business development, Rs 15.22 crore for technological development and balance amount towards general corporate purpose. The company is a technology-driven financial solutions and services platform focused on providing financial solutions in the area of tax planning and filing, personal investment advisory and wealth building to individuals, HUF, professionals, firms, and companies registered on its platforms. Incorporated in 2017, SSBA Innovations owns two platforms -- TaxBuddy and Finbingo. TaxBuddy was launched in October, 2019, that offers assisted tax (ITR and GST) plan

Here are the best of Business Standard's opinion pieces for Friday

Tax department should not issue notices indiscriminately

Business Standard brings to you the top headlines on Wednesday

Many assessees have challenged reassessment notices under old law

Four vacancies in the Central Board of Direct Taxes (CBDT) have not been filled despite the Appointments Committee of Cabinet (ACC) clearing names in February, exposing administrative gaps

Changes will impact several M&A transactions, including internal restructuring by companies which were signed since April 2020.

'Vivad Se Vishwas' is the Centre's ambitious tax dispute resolution scheme

Vivad Se Vishwas scheme allows the waiver of interest, penalty, and prosecution for settling tax disputes due up to January 31, 2020

CBDT's new performance appraisal needs review

The minister hoped that people will take advantage of the scheme to settle the tax disputes before March 31, 2020

Tax experts say one of the most dispute-prone proposals is making "fraudulent availing" of input tax credit (ITC), without an invoice or bill, a cognizable and non-bailable offence

It is important to introduce an efficient dispute resolution mechanism to ease the pain of an overburdened dispute resolution machinery

There is a tendency of the taxpayer, as well as the tax administrators, to continue with litigation because neither side wants to give up

The scheme is attractive, since the tax relief is 40-70% of the amount in dispute

Private rulings and settlement of cases after considering the hazards of litigation are some of the measures that have contributed to reducing disputes in other countries

As of March, 2017, tax disputes worth Rs 7.6 trillion were stuck in various stages of litigation in tribunals, High Courts and the Supreme Court