CBDT panel to review retrospective tax cases

FM in his budget speech announced that all fresh retro tax matters will go to a high level committee

The Central Board of Direct Taxes ( CBDT) has set up a high level committee to look into all fresh cases arising from the controversial retrospective amendments of 2012 on indirect transfer of assets.

The retrospective amendment in the Income Tax Act was one of the most controversial decision take by the previous UPA regime.

FM Arun Jaitley in his budget speech had made an announcement that all fresh cases arising out of the retrospective amend- ments of 2012 in respect of indirect transfer and coming to the notice of assessing officer will be scrutinised by a high level committee to be constituted by ( CBDT) before any action is initiated in such cases.

This was done to restore the confidence of the investors who had reacted negatively to the retrospective amend- ment of the IT act.

BJP in its manifesto had talked about ending what it called as “tax terrorism”.

Now in all fresh cases where income on account of retrospective amendments to the provisions related to indirect transfer is considered to accrue or arise before 1 April, 2012, the assessing officer ( AO) will be required to seek prior approval of committee for any action.

The committee will, after providing an opportunity to the taxpayer, issue appropriate directions to the AO in a time bound manner.